Artificial intelligence tools such as ChatGPT, Gemini, Claude, and a growing list of AI-powered assistants have become part of the everyday workplace. Employees use them to improve writing, summarize documents, brainstorm ideas, and automate administrative tasks.
When employees run internal documents, contracts, client information, or other confidential data through public AI chatbots, they may be triggering serious legal consequences without realizing it.
How Employees Unknowingly Expose Confidential Information
Many consumer AI tools are not built for secure business use. When an employee copies and pastes internal materials into a public chatbot to “rewrite this email,” “summarize this report,” or “draft this proposal,” they may be unintentionally:
- Disclosing Trade Secrets
- Violating NDAs and Confidentiality Agreements
- Compromising Client Trust or Professional Duties
- Triggering Regulatory Violations
What Types of Information Are Most at Risk?
Employees frequently input information into AI systems without fully understanding what qualifies as confidential. Examples may include:
- Client or customer information
- Internal financial records
- Legal case details
- HR or employee data
- Strategic planning documents
- Product roadmaps
- Proprietary algorithms, workflows, or code
- Content protected by NDAs or confidentiality clauses
Legal and Business Consequences
Unintentional misuse of AI tools may lead to:
- Allegations of breach of contract
- Accusations of violating confidentiality or trade secret laws
- Disciplinary action, including termination
- Liability and exposure
- Loss of employment, discipline, and/or reputational harm
Employees may also find themselves unfairly blamed for mistakes caused by unclear employer policies or inadequate training.
The Bottom Line
AI has created opportunities for efficiency and innovation in the workplace, but it has also created legal risks that employees may underestimate or not fully appreciate.
Employees must be cautious, informed, and proactive about safeguarding confidential information.
If you have run into an AI related workplace dispute, contact our employment attorneys at the Maura Greene Law Group for a confidential consultation, or call us at 617-936-1580.
The Not So Fine Print:
Every case has its unique facts. Before you take any action, you should contact an employment lawyer and get advice on your own situation. We can’t provide legal advice here, and this isn’t intended as legal advice. It is best, if possible, to establish a relationship with an attorney before a workplace issue turns into a crisis.