Homomorphic encryption is a form of encryption that allows data to be shared without needing to decrypt it first. This technique guarantees the confidentiality of sensitive information while enabling the untrusted party to perform computations on the encrypted data. 

Since data is often stored in hybrid multicloud environments, this approach helps mitigate security and privacy risks, enabling safer collaboration. 

For instance, let’s say a retail company uses an AI-powered tool to analyze customer behavior. Homomorphic encryption helps them gain valuable insights while concealing individual user queries, allowing for high-value analytics without the risk.