Scale AI

AI data labeling and enterprise AI platform for building production-grade AI systems

Phrase

Czech-founded AI translation management platform for global software and content teams

Scale AI

Strong

20/25

Phrase

Strong

20/25

Score Breakdown

DimensionScale AIPhrase

Data Residency

Where is your data stored and processed?

Scale AI: US-based cloud hosting with on-premise deployment available; FedRAMP cloud for government; data isolated per project

Phrase: Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.

4/5

US-based cloud hosting with on-premise deployment available; FedRAMP cloud for government; data isolated per project

4/5

Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.

Legal Jurisdiction

Which laws govern the company and your data?

Scale AI: US Delaware corporation subject to CLOUD Act; standard SCCs available for international data transfers

Phrase: Czech s.r.o. incorporated and operating under EU law with full GDPR applicability.

2/5

US Delaware corporation subject to CLOUD Act; standard SCCs available for international data transfers

5/5

Czech s.r.o. incorporated and operating under EU law with full GDPR applicability.

Data Retention & Training

Is your data used for model training?

Scale AI: Customer data used only for contracted tasks with strict annotator access controls; cryptographic audit trails; no cross-customer data sharing

Phrase: Customer translation memories and content explicitly not used for model training; configurable retention available.

5/5

Customer data used only for contracted tasks with strict annotator access controls; cryptographic audit trails; no cross-customer data sharing

4/5

Customer translation memories and content explicitly not used for model training; configurable retention available.

Certifications

ISO 27001, SOC 2, Cyber Essentials, etc.

Scale AI: SOC 2 Type II, ISO 27001, FedRAMP Moderate and FedRAMP High — among the highest compliance credentials in the AI sector

Phrase: ISO 27001 certified; SOC 2 not yet publicly confirmed as of 2025.

5/5

SOC 2 Type II, ISO 27001, FedRAMP Moderate and FedRAMP High — among the highest compliance credentials in the AI sector

3/5

ISO 27001 certified; SOC 2 not yet publicly confirmed as of 2025.

Regulatory Fit

Suitability for regulated industries and professional services

Scale AI: Government-grade security posture suitable for defence, intelligence, financial services, and healthcare AI development workloads

Phrase: Strong EU fit with comprehensive DPA, SCCs for third-party providers, and audit logging for regulated content.

4/5

Government-grade security posture suitable for defence, intelligence, financial services, and healthcare AI development workloads

4/5

Strong EU fit with comprehensive DPA, SCCs for third-party providers, and audit logging for regulated content.

Total Score

20/25

Best For

Scale AI

Best for EU-headquartered organisations needing maximum data sovereignty; regulated industries (UOOU, CNIL); privacy-conscious teams who need strong data retention controls.

Phrase

Best for organisations requiring broad certification coverage (SOC 2 Type II, ISO 27001, FedRAMP Moderate); regulated industries (DoD, CISA); privacy-conscious teams who need strong data retention controls; organisations that need self-hosted or on-premise deployment.

Detailed Comparison

Phrase vs Scale AI: Trust & Compliance Comparison

Phrase (Phrase, CZ) scores 20/25 overall with a Silver (Strong) trust badge. Czech-founded AI translation management platform for global software and content teams. Scale AI (Scale AI, US) scores 20/25 with a Silver (Strong) trust badge. AI data labeling and enterprise AI platform for building production-grade AI systems.

Dimension-by-Dimension Breakdown

#### Data Residency

Both score equally at 4/5.

●Phrase (4/5): Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.

●Scale AI (4/5): US-based cloud hosting with on-premise deployment available; FedRAMP cloud for government; data isolated per project

#### Legal Jurisdiction

Phrase leads with 5/5 vs 2/5.

●Phrase (5/5): Czech s.r.o. incorporated and operating under EU law with full GDPR applicability.

●Scale AI (2/5): US Delaware corporation subject to CLOUD Act; standard SCCs available for international data transfers

#### Data Retention & Training

Scale AI leads with 5/5 vs 4/5.

●Phrase (4/5): Customer translation memories and content explicitly not used for model training; configurable retention available.

●Scale AI (5/5): Customer data used only for contracted tasks with strict annotator access controls; cryptographic audit trails; no cross-customer data sharing

#### Certifications

Scale AI leads with 5/5 vs 3/5.

●Phrase (3/5): ISO 27001 certified; SOC 2 not yet publicly confirmed as of 2025.

●Scale AI (5/5): SOC 2 Type II, ISO 27001, FedRAMP Moderate and FedRAMP High — among the highest compliance credentials in the AI sector

#### Regulatory Fit

Both score equally at 4/5.

●Phrase (4/5): Strong EU fit with comprehensive DPA, SCCs for third-party providers, and audit logging for regulated content.

●Scale AI (4/5): Government-grade security posture suitable for defence, intelligence, financial services, and healthcare AI development workloads

Certifications at a Glance

Certification	Phrase	Scale AI
FedRAMP High	No	Yes
FedRAMP Moderate	No	Yes
ISO 27001	Yes	Yes
SOC 2 Type II	No	Yes

Overall Verdict

Phrase and Scale AI are closely matched on trust and compliance, with scores of 20/25 and 20/25 respectively. The right choice depends on your specific regulatory requirements and existing technology stack.

Frequently Asked Questions

Which is better for EU compliance, Scale AI or Phrase?

Scale AI has a TrustKit score of 20/25 while Phrase scores 20/25. Both tools are currently rated equally across data residency, legal jurisdiction, data retention, certifications, and regulatory fit.

How do Scale AI and Phrase compare on data residency?

Scale AI scores 4/5 for data residency (US-based cloud hosting with on-premise deployment available; FedRAMP cloud for government; data isolated per project), while Phrase scores 4/5 (Primary infrastructure in EU data centres; third-party MT providers may process content in their own regions.).

Are Scale AI and Phrase GDPR compliant?

Both tools are assessed across five compliance dimensions. Scale AI has a regulatory fit score of 4/5 and Phrase scores 4/5. Check the full comparison above for a detailed breakdown.

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