Legal Implications of AI Conversations: Why Your Chats Are Not Private

Contrasting attorney-client privilege to AI chatbots.

Why Your AI Chatbot Could Be the Star Witness Against You

It starts innocently enough. You have had a difficult day at work, perhaps facing harassment from a supervisor or noticing financial irregularities you suspect are fraudulent. You sit down at your computer, open a chatbot, and type: “My boss is threatening to fire me because I reported a safety violation. What are my rights?”

The AI responds with a comforting, well-structured list of potential legal statutes. It feels private. It feels safe. It feels like you are venting to an impartial, digital confidant.

However, in the eyes of the law, you may have just handed the opposition a smoking gun.

As artificial intelligence becomes deeply integrated into our daily lives, many people treat tools like ChatGPT, Claude, and Gemini as surrogate therapists or legal advisors. But there is a critical distinction that every employee, whistleblower, and injury victim must understand: unlike a conversation with a lawyer, your conversation with an AI is not private. In fact, that digital transcript could be the very evidence that dismantles your case in court.

The Growing Use of AI and Emerging Legal Concerns

We are living through a massive shift in how information is processed. AI assistants now sit quietly inside our inboxes, browsers, and mobile apps, processing documents and answering questions with impressive speed. For individuals facing legal distress—whether it’s a wrongful termination, a personal injury, or workplace discrimination—the temptation to use these tools for research is overwhelming.

It is easy to see the appeal. AI is available 24/7, it doesn’t charge hourly rates, and it doesn’t judge. But this accessibility masks a severe legal vulnerability. When you type details of your situation into a generative AI model, you are creating a permanent, third-party record of your thoughts, inconsistent recollections, and admissions.

Legal professionals are raising the alarm: reliance on AI for sensitive legal research is creating a minefield for potential litigants. The technology has outpaced the law, leaving users exposed in ways they often do not anticipate until the discovery phase of a lawsuit begins.

Lack of Legal Protection: AI Conversations vs. Attorney-Client Privilege

The cornerstone of effective legal representation is attorney-client privilege. This legal concept ensures that frank, honest communications between you and your lawyer cannot be disclosed to the opposing party. It allows you to tell your attorney the “bad facts” along with the good, ensuring they can build a robust defense or case strategy without fear of those private admissions being used against you.

There is no such thing as “robot-client privilege.”

When you communicate with a chatbot, you are sharing information with a third-party corporation. Under the “third-party doctrine,” information you voluntarily share with a third party—be it a bank, a phone company, or an AI provider—generally loses its expectation of privacy.

If you are involved in litigation, the opposing counsel can subpoena your data. They can demand records of what you searched for, what you admitted to the AI, and how the AI responded. In this context, typing your case details into a chatbot is legally comparable to shouting your secrets in a crowded room.

Potential Risks: How AI Conversations Can Be Used Against You

The danger goes beyond a simple lack of privacy. The nature of how we interact with AI—often casually, emotionally, or hypothetically—can generate evidence that is damaging out of context.

Sam Altman, CEO of OpenAI, has explicitly warned users about this reality. In a candid admission, he noted that if users discuss their most sensitive issues with ChatGPT and a lawsuit arises, the company “could be required to produce that.”

Furthermore, simply hitting “delete” on a chat history may not protect you. Due to ongoing high-profile litigation, such as The New York Times suing OpenAI, companies are often under court orders to preserve evidence, including deleted conversations. Your digital footprint is far more durable than you think.

Examples of Self-Incrimination: Revealing Inconsistent Statements

Why is this specific data so dangerous? Defense attorneys are skilled at finding inconsistencies to undermine a plaintiff’s credibility. Your AI chat logs can provide them with ample ammunition.

Contradicting Your Claims

Imagine you were injured in a slip-and-fall accident. In your lawsuit, you claim severe, debilitating back pain. However, weeks prior, you asked an AI, “Best exercises for mild back strain so I can go hiking next week.” A defense attorney will present this chat log to the jury to argue that you are exaggerating your injuries.

Inconsistent Narratives

Memory is fallible. When you first speak to an AI about a workplace incident, you might get a date wrong or omit a key detail. Months later, during a deposition, you testify to the correct timeline. The opposition can use your initial, flawed AI query to paint you as dishonest or unreliable.

Exaggerations and “Hallucinations”

Users often prompt AI with exaggerated scenarios to get a more comprehensive response. You might say, “My boss screams at me every single day,” just to see what the AI says about harassment, even if the screaming only happened once. In court, that hyperbole looks like a lie. Furthermore, if the AI provides false information (a “hallucination”) and you inadvertently incorporate that falsehood into your testimony, your credibility is shattered.

Data Privacy Concerns: What AI Providers Do With Your Data

Beyond the courtroom, there is the issue of corporate surveillance. Behind the helpful interface of an AI assistant lies a simple reality: every interaction feeds the system data.

What happens to that data—how it is stored, used, or shared—depends entirely on the provider. While companies often claim they prioritize privacy, a closer look at their policies reveals a complex web of data collection.

The “Black Box” of Retention

Most major AI providers collect prompts, uploaded files, and interaction logs. This data is not just floating in a void; it is stored on servers, often indefinitely unless specific settings are toggled. For individuals dealing with sensitive legal matters, such as whistleblowers reporting corporate fraud, this retention creates a significant security risk.

OpenAI, Google, and Anthropic: Comparing Data Policies

To understand the scope of the risk, we must look at how the major players handle your information.

OpenAI (ChatGPT)

OpenAI’s default posture favors collection. Unless you are an enterprise client or proactively opt out, your conversations can be used to train their models. While they offer a “temporary chat” mode where data is deleted after 30 days, standard chats are retained indefinitely until you delete them. Even then, as noted regarding recent lawsuits, “deleted” does not always mean gone forever.

Google (Gemini)

Google’s approach is bifurcated. For enterprise workspace users, privacy protections are robust. However, for consumers using the free or standalone versions, the policy is more invasive. Google may retain chats for up to 36 months. More concerningly, some conversations are reviewed by human contractors to “improve” the AI. While Google claims this data is anonymized, identifying details within the text of a legal query could easily unmask a user.

Anthropic (Claude)

Anthropic, often touted for safety, has shifted its stance. As of late 2025, they introduced a default opt-in model for training. If users did not explicitly opt out by a specific deadline, their silence was interpreted as consent. This means your queries could be used to train future models, stored for years.

Microsoft (Copilot)

Microsoft’s Copilot, particularly the version integrated into GitHub, stands as an outlier. It is designed to suggest code and then “forget” it, generally not retaining snippets for training. However, for general text-based queries outside of coding environments, users must still be vigilant about the specific privacy settings of their Microsoft account.

Expert Opinions and Warnings: Legal Professionals and AI Experts Weigh In

The consensus among legal professionals is clear: Do not use AI for research about your legal situation.

The risks of discovery, inconsistent statements, and lack of privilege far outweigh the convenience of a quick answer. Employment law attorneys emphasize that AI cannot understand the nuance of your specific jurisdiction, contract, or the psychological state of your employer.

Even AI executives agree. Sam Altman’s comparison of ChatGPT to a therapist highlighted the dangerous gap in privacy expectations. “We haven’t figured that out yet for when you talk to ChatGPT,” Altman admitted regarding legal privilege. He suggested that users deserve the same privacy clarity they get with a doctor or lawyer, but acknowledged that such protections simply do not exist yet.

The Need for AI Legal Framework: Calls for Privacy and Legal Privilege

The legal system moves slowly, while technology moves at lightning speed. Currently, there is a gaping hole in the legal framework regarding AI communications.

Advocates are calling for new laws that would extend evidentiary privileges to cover interactions with AI, similar to how doctor-patient or attorney-client confidentiality works. The argument is that if people are using these tools to navigate crises—mental health struggles, legal disputes, medical issues—society has an interest in allowing them to do so without fear of surveillance.

However, until legislators act, the “third-party doctrine” remains the law of the land. Courts will likely continue to view AI chat logs as fair game in discovery battles.

User Responsibility: Tips for Safe AI Usage

If you must use AI, you need to do so with a defensive mindset. Here is how to protect yourself:

  • Avoid Specifics: Never input real names, dates, company names, or specific fact patterns into a chatbot.
  • Check Your Settings: Go into the settings of any AI tool you use and disable “Model Training” or “Chat History” where possible.
  • Assume It’s Public: Write every prompt as if it will be read aloud in a courtroom by an attorney who is trying to discredit you.
  • Verify Everything: Never rely on AI for legal advice. It is often outdated or completely wrong regarding state-specific laws.

Conclusion: Navigating the Legal Landscape of AI Conversations

The allure of artificial intelligence is its ability to provide immediate answers. But in the realm of law, immediate answers are rarely the safest ones. The lack of attorney-client privilege in AI conversations creates a vulnerability that can be exploited by employers, insurance companies, and opposing counsel.

Your case deserves more than a predictive text algorithm. It deserves the protection of true confidentiality and the strategic thinking of an experienced human advocate. Don’t let a casual chat with a robot compromise your fight for justice.

When legal questions arise, the impulse to seek quick answers from AI is understandable. But as technology evolves, so do the methods of legal discovery. What you type into a chatbot today could become evidence in a courtroom tomorrow.

The digital age demands not only awareness but also caution. Protecting your legal rights means understanding the limitations of the tools you use. Before you turn to AI for legal guidance, consider the irreversible consequences of a conversation that is never truly private. Your case is too important to be compromised by a machine.

 

Wage Theft Crisis

2.4 Million workers victims of ongoing WAGE THEFT. Helmer Friedman LLP employment law attorneys.

The Hidden Theft: Billions Lost in Unpaid Wages

Injustice is not always visible – especially when companies subtly dip into their employees’ hard-earned wages. A recent study from EPI unraveled how employers are unlawfully paying less than the minimum wage to their employees – a subtle form of theft that is costing workers billions of dollars every year.

The Impact of Wage Theft: By Numbers

According to the survey data, around 2.4 million workers from the top ten most populous U.S. states are victims of this ongoing wage theft, losing roughly $8 billion annually. On an individual level, affected workers lose an average of $64 per week, accounting for almost a quarter of their weekly earnings. If these workers were paid correctly, 31% of those struggling with poverty would be lifted above the poverty line.

The Crime Wage Theft Hotspots

Minimum wage violations are more prevalent in some states than others. Florida leads the pack with a violation rate of 7.3%, followed by Ohio (5.5%) and New York (5.0%). However, when it comes to the highest amount of lost wages due to these practices, Texas, Pennsylvania, and North Carolina top the chart.

The Most Affected Demographics

Unfortunately, this unscrupulous practice is more likely to affect certain groups. Our young workforce (ages 16 to 24), women, people of color, and immigrant workers often report being paid less than the minimum wage. Part-time employees, service industry workers, and unmarried workers, especially single parents, also fall victim to these violations at a higher rate.

The Bigger Picture

When looking at the grand scale of things, the financial exploitation of workers is staggering. Bad employers are stealing around $15 billion annually from their employees, purely from minimum wage violations alone. This amount surpasses the total value of property crimes committed in the U.S. each year. Yet, there is a stark difference in the resources allocated to combat wage theft compared to property crime.

This substantial wage theft affects workers and puts undue pressure on taxpayers and state economies. Around one-third of workers experiencing these violations rely on publicly funded assistance programs like SNAP and housing subsidies. Moreover, wage theft artificially lowers labor costs for the “thieving” companies, creating an unfair competitive advantage and putting downward pressure on wages industry-wide.

The Solution

Enforcing tougher wage and hour laws and strengthening enforcement against wage theft should be a priority to deter higher rates of violations. Furthermore, raising wages for low-wage workers could lead to significant public savings and improvements in our collective health, education, and social mobility.

Nobody should be robbed of their hard-earned money, especially under the guise of employment. Let’s join hands to bring this hidden theft to light and take appropriate action.

One notable example of combating wage theft is the recent victory of Disneyland employees, who filed a class action lawsuit that resulted in a $233 million award for their lost wages. This case highlights how employees can unite to challenge unfair labor practices by collectively filing a class action lawsuit. Such lawsuits allow workers to pool their resources, share their grievances, and present a united front against powerful employers. To effectively pursue this legal avenue, employees should consider hiring an experienced employment law attorney who handles class action cases. These attorneys can guide employees through the legal process, ensuring their voices are heard and their rights are upheld while potentially securing significant restitution for lost wages.

High Tech, Low Inclusion: The EEOC Report on Diversity in the Tech Sector

New Whistleblower Program administered by the DOJ.

The high-tech sector, known for spearheading advancements in science and technology, seems to be lagging when it comes to inclusion and diversity. A report recently published by the U.S. Equal Employment Opportunity Commission (EEOC) titled “High Tech, Low Inclusion: Diversity in the High Tech Workforce and Sector from 2014 – 2022” dissects the current state of diversity in this sector, offering a sobering insight into the extent of the problem.

Behind the Figures

The EEOC’s findings show a disturbing trend of underrepresentation for certain demographic groups in the high-tech sector. Women and Black workers, in particular, are being left behind. The figures reveal that despite being nearly half of the U.S. workforce, women make up only 22.6% of the high-tech workforce in all industries and a meager 4% in the high-tech sector. The representation of Black and Hispanic workers in the high-tech workforce has seen negligible progress over the years.

The Issue of Age Discrimination

The report also highlights age as a factor in employment discrimination within the high-tech sector. Interestingly, the high-tech workforce skews younger than the total U.S. workforce. In the high-tech world, over 40% of the workforce belongs to the 25-39 age group, compared to 33.1% in the overall workforce. Workers over 40 have seen their representation in the high-tech sector decrease from 55.9% to 52.1% from 2014 to 2022.

Moreover, the EEOC report notes that discrimination charges filed by tech professionals were more likely to involve issues of age, pay, and genetic information than those filed in other sectors.

The Call for Change

EEOC Chair, Charlotte A. Burrows, asserts that “America’s high tech sector, which leads the world in crafting technologies of the future, should not have a workforce that looks like the past.” The Commission is committed to identifying and resolving instances of discrimination that contribute to these disparities.

The EEOC report concludes with a call for employers in the high-tech sector to actively investigate and overcome barriers to employment. Proactive policies geared towards boosting inclusion are needed to ensure that everyone gets a fair shot at high-tech opportunities.

Were You Denied a Job In High Tech?

If you applied for a job in the high-tech sector and believe that you were discriminated against due to your age, race, gender, or ethnicity, it’s advisable to consult with an experienced employment attorney.

Discrimination is not just ethically wrong, it’s illegal. Your rights are protected under the Civil Rights Act of 1964 and other federal laws – laws that are in place to ensure everyone has equal opportunities in the job market. Don’t hesitate to stand up for your rights and seek legal counsel if you’ve been unfairly denied a job in the high-tech sector.

Individual But Not Representative Claims Compelled To Arbitration

In-N-Out Burgers

Piplack v. In-N-Out Burgers, 88 Cal.App.5th 1281 (2023)

Former employees of In-N-Out Burgers, on their own behalf and on behalf of similarly aggrieved employees, brought an action against In-N-Out Burgers seeking civil penalties under the Labor Code Private Attorneys General Act for In-N-Out Burgers’s alleged practices of requiring employees, without reimbursement, to purchase and wear certain articles of clothing and to purchase and use special cleaning products to maintain the clothes. In reliance on Viking River Cruises, Inc. v. Moriana, ––– U.S. ––––, 142 S.Ct. 1906 (2022), In-N-Out Burgers filed a motion to compel arbitration, arguing that Viking River requires plaintiffs’ individual PAGA claims to be arbitrated and all remaining representative claims dismissed for lack of standing. The trial court summarily denied In-N-Out Burgers’ motion to compel arbitration. In-N-Out Burgers appealed.

The Court of Appeal concluded that the arbitration agreements required individual PAGA claims to be arbitrated and that In-N-Out Burgers did not waive its right to compel arbitration through its litigation conduct. The Court of Appeal also held that Viking River’s requirement that the plaintiff’s individual claims under PAGA be compelled to arbitration did not necessarily deprive the plaintiff of standing to pursue representative claims as an aggrieved employee.

President Biden Signed Into Law the “Speak Out Act,” Curbing Use Of Non-Disclosure Agreements In Harassment Cases

Helping Employees Recover and Enforcing Employment Laws Helmer Friedman LLP.

President Biden signing the Speak Out Act.

On December 7, 2022, President Joe Biden signed the Speak Out Act, which bans the use of pre-dispute non-disclosure and non-disparagement contract clauses involving sexual assault and sexual harassment. The new law renders unenforceable non-disclosure and non-disparagement clauses related to allegations of sexual assault and/or sexual harassment that are entered into “before the dispute arises.” The new law does not prohibit the use of these agreements completely. The Speak Out Act exclusively prohibits and nullifies pre-dispute non-disclosure and non-disparagement agreements and does not apply to post-dispute agreements. Accordingly, the act only applies to instances before a sexual harassment, or sexual assault dispute arises. The act also does not apply to trade secrets, proprietary information, or other types of employee complaints such as wage theft, age discrimination, or race discrimination.

2011 Southern California “Super Lawyers”

Helmer Friedman LLP is very pleased to announce that Law & Politics Magazine and the publishers of Los Angeles Magazine have selected Gregory D. Helmer and Andrew H. Friedman as 2011 Southern California “Super Lawyers” in the category of Labor and Employment Law.