AI Chatbots and Legal Risk: What Employers Need to Know

As artificial intelligence becomes part of everyday business operations, employers face a growing legal concern: Information entered into AI chatbots may not be as private as users assume.

In an article published by American City Business Journals, Vanessa Matsis-McCready, Associate General Counsel and Vice President of HR Services at Engage PEO, discusses the potential legal consequences of using AI tools for workplace decisions.

The article, “How to Avoid a Costly Legal Mistake With AI Chatbots,” examines recent court cases involving AI-generated conversations and how chatbot records may become evidence during litigation.

Matsis-McCready cautions that even the questions managers enter into AI tools could create problems in employment disputes involving discrimination, wrongful termination or other workplace matters.

Her advice reinforces an important consideration for employers: AI conversations should be approached with the same care as workplace emails and other business communications.

For employers incorporating AI into their operations, the article highlights several considerations:

• Establish clear policies governing workplace AI use.
• Train managers and employees on appropriate use, including what information should never be entered into public AI tools.
• Protect confidential employee and business information.
• Recognize that AI conversations may be subject to legal discovery.