Milbank LLP Litigation & Arbitration partner Jed Schwartz, Real Estate partner Yaakov Sheinfeld and Litigation & Arbitration special counsel John Hughes authored an article published by Bloomberg Law examining the implications of a recent federal court decision for companies deploying artificial intelligence tools in legal workflows.
In the article, titled, “Heppner Shows Attorney-Client Privilege’s Fragility in AI Era,” the authors analyze how the court’s reasoning in United States v. Heppner highlights emerging risks to attorney-client privilege when companies use AI systems. The piece discusses the government’s argument that communications with AI platforms may not qualify as privileged legal consultations and why that reasoning could extend beyond consumer chatbots to enterprise AI deployments.
The article also reviews the privacy terms of several major AI providers and identifies gaps that may expose sensitive information when organizations rely on consumer-grade tools. The authors conclude with practical recommendations for companies adopting AI in legal contexts, including using enterprise-grade platforms, negotiating stronger data-protection terms and implementing internal governance controls designed to help preserve privilege.
To read the full article, please click here.
