Why Business Owners Should Think Twice Before Sharing Confidential Information Online
Generative Artificial intelligence tools like ChatGPT are changing how people access information. But when it comes to legal matters, using AI chatbots can create serious risks for business owners — including data exposure, legal liability, and misinformation.
At Trembly Law Firm, we’ve recently seen several prospective clients input confidential details about their cases into ChatGPT. While the technology can be helpful for general knowledge, it’s not private, not privileged, and not a substitute for real legal counsel.
1. Information Shared With a Chatbot Is Not Confidential
When you type sensitive case details into a system like ChatGPT, you’re not communicating with a lawyer — you’re interacting with a third-party platform that stores data for training and improvement.
That means the information you provide could be:
- Stored or logged by OpenAI’s servers.
- Potentially discoverable in litigation through subpoenas or legal requests.
- Viewed by others under certain data-review conditions.
If you share facts about an ongoing dispute, contract issue, or lawsuit, you could unintentionally make that information part of the public record.
Bottom line: Conversations with AI chatbots are not protected by attorney-client privilege.
2. AI Often Hallucinates and Produces “Phantom” Legal Citations
ChatGPT can write convincingly — but that doesn’t mean it’s accurate. The platform has been known to generate false or “hallucinated” case citations, misstate Florida law, or invent legal concepts entirely. Relying on these errors can cause serious harm if used in legal filings, HR policies, contracts, or negotiations.
Even seasoned attorneys double-check every AI-generated statement before using it — and that’s after years of legal training.
3. ChatGPT Cannot Replace Professional Legal Counsel
No AI tool can match the judgment, strategy, or ethical responsibility of a licensed attorney. Every legal situation depends on context — business structure, contract language, prior agreements, and jurisdiction.
At Trembly Law Firm, we believe technology can support good decision-making, but it can’t replace personalized legal advice. When your business, contracts, or reputation are on the line, you need a human legal partner who understands your goals and protects your interests.
How to Protect Yourself
If you’ve already entered legal information into ChatGPT or another AI tool:
- Stop sharing additional details.
- Notify your attorney immediately so they can assess potential exposure.
- Rely on secure communication channels when discussing your case.
The Smart Move: Consult Before You Click
At Trembly Law Firm, we help business owners stay protected — from lawsuits, compliance risks, and now, even from technology missteps. Before turning to AI for legal advice, talk to a real attorney who understands your business and can give you clear, confidential guidance.
Schedule a consultation today to ensure your business stays safe, compliant, and proactive.