you’ll note that in their statement at https://gsuite.google.com/learn-more/security/security-white... they explicitly refer to no advertising in the G Suite Core Services. those are defined here http://gsuite.google.com/terms/user_features.html. not listed in the G Suite Core Services is regular Google Search. so what they’re saying is is that none of the data you put in any G Suite Core Service like Gmail, Drive, Groups, Keep, Sites etc will ever be used to target you with ads.
however, anything they can get from your browsing habits via google.com search and other ways of tracking you via data you may expose from non-G Suite Core Services, are fair game.
i have been a personal and corporate admin of G Suite nee Google Apps for 5 years. i believe the policy is adhered to by Google through my own anecdotal use as user and engineer over many domains and companies. and i believe who claim they can prove Google is scanning paid G Suite account data and using it to target are not realising that non-cloudsearch ie regular google.com searches and everything connected to your G Suite profile based on those searches is what is getting you targeted.
