Hi yes, that's the idea! The example shown in the demo video uses internal help docs as the "source of knowledge" for embeddings, but the same principles apply to customer data.
Vellum currently embeds any text you send it, but to be honest, we haven't experimented with performing semantic search across homomorphically encrypted text and can't speak to its performance. If this becomes a recurring theme from our customers, we'd be excited to dig into it deeper!