I wonder if the answer is that it is stored and processes in a way that a human can’t access or read, like somehow it’s encrypted and unreadable but tokenized and can be processed, I don’t know how but it feels possible.

It wouldn't matter of you did all that because you could still ask the AI, "what would my friend Bob think about this?" And the AI, who heard Bob talking in his phone when he thought he was alone in the other room, could tell you.