AI tools have revolutionized business operations, yet they pose emerging legal risks, particularly in attorney-client communication. A recent ruling by U.S. District Judge Jed Rakoff found that prompts and outputs generated by a public AI, used by criminal defendant Bradley Heppner, lack attorney-client privilege and work-product protection. Heppner claimed these AI documents were created for attorney consultation, but the judge ruled they failed to meet legal criteria for privileged communication, citing that Claude, the AI model, is not an attorney and the information shared is not confidential. This case emphasizes the risks associated with using public AI platforms for sensitive legal discussions. Best practices for companies include using closed AI tools where inputs and outputs retain confidentiality, consulting counsel before creating sensitive documents, and ensuring that AI-generated materials are developed at the direction of legal advisors. Companies must stay mindful of the evolving intersection of AI technology and legal protections.
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