Auto-Steal

I just got the potential "Chance to Auto-Steal when attacked" and i dont really get how it works.

When an enemy hits me, it has a 2% chance to take an item and put it in my inventory? or does it just drop from the enemy like a normal drop?

Thanks in advance
Ah, never mind, i saw it happen

For those wondering.
It's a 2% chance to steal an enemy drop when it is attacked. It does not work on bosses.