Federal Judge Rules AI Chatbot Conversations Not Protected by Attorney-Client Privilege

Most tech industry products are easily accessible by the US government. Ring Doorbells have given the Los Angeles Police Department warrantless access to their customers’ camera footage. The FBI can extract iPhone metadata to access the content of Signal messages. Google complies with administrative subpoenas issued by Department of Homeland Security officials.

A new ruling by a New York federal judge now definitively includes AI chatbots in that list. In a protracted legal battle involving Brad Heppner, former chair of financial services company GWG Holdings, US District Judge Jed Rakoff ruled that AI chatbots are not subject to attorney-client privilege.

In preparing background materials for his attorneys, Heppner entered various reports into Anthropic’s flagship chatbot, Claude. The AI generated preliminary reports, which his lawyers used to prepare his defense against charges of securities and wire fraud, as reported by Reuters.

The issue? While attorney-client privilege protects most communications between Heppner and his lawyers, it does not extend to information entered into Claude. As a result, Heppner is being forced to hand over 31 documents generated by Claude to the court.

Judge Rakoff’s Ruling on AI and Legal Privilege

In his opinion, Judge Rakoff wrote that no attorney-client relationship exists “or could exist, between an AI user and a platform such as Claude.” He further absolved the chatbot of any impropriety, noting that Claude disclaims providing legal advice.

“Indeed, when the Government asked Claude whether it could give legal advice, it responded that ‘I’m not a lawyer and can’t provide formal legal advice or recommendations’ and went on to recommend that a user ‘should consult with a qualified attorney who can properly assess your specific circumstances,’” Rakoff explained.

Heppner’s alleged fraud notwithstanding, the ruling has major implications for AI chatbot users who may now unknowingly incriminate themselves.

Legal Industry Responds to the Ruling

The finding is already affecting law offices, according to Reuters. The white-collar defense firm Sher Tremonte updated its contract to state that “disclosure of privileged communications to a third-party AI platform may constitute a waiver of the attorney-client privilege.”

While tech companies routinely share personal data with government agencies, the widespread use of AI chatbots in recent years has introduced a new frontier for compliance with government demands.

Further Reading on AI and Privacy

• Woman Sues OpenAI, Claiming ChatGPT Enabled a Stalker and Failed to Act When She Reported It