The software on the server needs to be able to decrypt the data which users are sending, otherwise it cannot analyze.

If the data is strongly encrypted (only you can decrypt it) why do you care if it's deleted or stays on the server as it is practically unusable garbage for them?

ch0k1

The software needs data inputs, the company doesn't.

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Google Teases Innovative New Android Abilities With Gemini AI

The software needs data inputs, the company doesn't.

So there are 2 solutions for this:
1) Run it locally. But there is an issue with computing power (it get's better, but I don't know what the limits will be).
2) Send data (encrypted of course) to a stronger machine (server), let it do the analyzing and output creation, send results back (encrypted of course) and then delete everything on the server. But 2 issues here:
- You have to trust that data and results will really be deleted.
- You have to trust no data is leaked anywhere between.