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National Law Review
National Law Review
6/26/2026
Consider Secure or Closed AI Systems: Recent Protective Orders Provide Guidance for Businesses Seeking to Use AI Tools Legally and Ethically

Consider Secure or Closed AI Systems: Recent Protective Orders Provide Guidance for Businesses Seeking to Use AI Tools Legally and Ethically

Short summary

Two recent US protective orders require businesses using AI tools for confidential information to employ 'closed or secure' systems that don't train on user inputs. Public AI platforms risk privilege waiver, data leakage, and regulatory violations. Businesses must use secure tools and implement strict data governance for sensitive information.

  • Recent court orders establish requirements for AI tool usage in litigation and business contexts
  • Public AI platforms that train on user inputs create legal risks: privilege waiver, data leakage, regulatory violations
  • Businesses must use 'closed or secure' AI tools for confidential information with strict data deletion protocols

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