Is Your AI Use Putting Your Business at Risk?

If you’ve ever used AI to think through a business decision or draft something sensitive, there’s a new legal development you need to be aware of.

In United States v. Heppner (February 2026), a federal court held that conversations with a public AI platform were not protected by attorney-client privilege or the work-product doctrine. As a result, those communications were considered discoverable.

The reasoning comes down to one key concept: confidentiality.

Attorney-client privilege only applies when communications are kept confidential between a client and their attorney. When information is shared with a third-party platform, like a public AI tool, that confidentiality can be lost.

The court’s message was clear: AI is not your lawyer, and it should not be treated like one.

What This Means for Business Owners

For entrepreneurs and leadership teams, this isn’t just a legal technicality. It’s a practical risk.

AI tools can be incredibly helpful for brainstorming, drafting, and problem-solving. But they should never be used to input:

• Sensitive business details

• Legal strategies or disputes

• Confidential client or employee information

Because once that information is shared, you may not be able to claim protection over it later.

A Smarter Way to Use AI

AI can be a powerful tool when used appropriately. But when it comes to legal decisions or sensitive matters, the safer approach is simple:

Use AI for efficiency.
Use your attorney for protection.

The Bottom Line

As technology evolves, so do the risks.

Understanding where convenience ends and legal exposure begins is critical for building a business that is not only innovative, but protected.

If you have questions about how to safely integrate AI into your operations, we’re always here to help you think it through.

The information provided in this article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by virtue of this article. For specific legal advice related to your situation, please consult with a qualified attorney.