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Tools like ChatGPT and Claude may not remain private (Img: Internet)
New Delhi: A recent decision by a US federal court has triggered widespread concern over the legal status of conversations with artificial intelligence platforms. Lawyers across the United States are cautioning clients that chats with tools like ChatGPT and Claude may not remain private and could be disclosed during legal proceedings.
The warnings follow a ruling by Jed Rakoff, who directed a defendant to submit documents created using an AI chatbot as part of a criminal case.
The case involved Bradley Heppner, former chairman of GWG Holdings, who faces charges related to securities and wire fraud. During his defence preparation, Heppner used Claude to generate notes and reports, which were later shared with his legal team.
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His lawyers argued that these documents should be protected under attorney-client privilege. However, prosecutors contested this, and the court ultimately ruled that such protections did not apply.
Attorney-client privilege is designed to protect confidential communication between a lawyer and their client. However, the court noted that AI platforms do not qualify as legal counsel.
By entering sensitive information into an AI system, users effectively share it with a third party. Under established legal principles, such disclosure can waive privilege protections. The ruling also pointed out that AI platforms often state in their terms of service that users should not expect complete privacy in their inputs.
Following the ruling, several major US law firms have issued advisories urging caution when using AI tools during legal disputes. Many firms recommend avoiding consumer-facing chatbots for sensitive matters.
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Some have suggested using controlled, enterprise-level AI systems, though even these options have not yet been fully tested in courts. Lawyers are also advising clients to clearly indicate when AI tools are being used under legal guidance, especially for research purposes.
The development has intensified discussions around data privacy and the role of AI in legal contexts. While AI tools offer convenience and efficiency, experts warn that users must remain aware of the potential risks.
As courts begin to address such issues, the boundaries of privacy in AI interactions are likely to face increased scrutiny in the coming years.
Location : New Delhi
Published : 15 April 2026, 8:58 PM IST
Topics : AI chats legal risk attorney client privilege AI ChatGPT privacy court Claude AI legal case US court AI ruling
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