Legally Legit® Podcast podcast

217. AI Legal Risks for Small Business Owners: Disclosures, Client Data & ChatGPT Evidence

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AI is everywhere in business right now. You can use it to brainstorm, edit, research, draft copy, build itineraries, create mood boards, sort through information, and streamline your workflow. 

But there’s a legal side of AI that isn’t getting nearly as much attention.

This episode is really an extension of our last conversation. We are zooming out a bit to look more broadly at how AI is impacting you, your business, your contracts, your creative work, and even your personal life.

What happens when AI-generated work ends up in your portfolio? What if a client uploads the photos, templates, course materials, or other creative work you delivered into an AI platform? What happens when you paste confidential client information into a consumer AI tool?

And what about everything you’re casually typing into ChatGPT or Claude?

In this episode, I’m breaking down the AI issues I’m watching unfold in real time, and why small business owners need to start treating AI use as a contract, copyright, confidentiality, and evidence issue.

In this episode, I cover:

  • Why your portfolio is a legal representation of your work and why you need to think carefully about how AI-assisted or AI-generated work is presented.
  • The copyright issues that can arise when someone takes another creator’s work and feeds it into an AI platform without permission.
  • Why I believe businesses using AI in their client work need clear, written AI disclosure language.
  • Where AI disclosure language belongs in your client contract and website terms and conditions.
  • Why your contract also needs to address what clients can and cannot do with the work you deliver.
  • Why course creators and template sellers should pay especially close attention to AI-related intellectual property language.
  • The confidentiality concerns that arise when you paste client information, proprietary materials, contact information, or unreleased assets into consumer AI tools.
  • Why AI conversations are not protected by attorney-client privilege.
  • How the same concerns can extend beyond your business into personal, financial, relationship, parenting, and other sensitive conversations.
  • Five practical AI-related areas I want every business owner to audit right now.

Links & Resources

Grab The Legal Paige AI disclaimer clauses here

Additional Links and Resources:

👉 Try Retainly free for 30 days at getretainly.com.

Need 1:1 legal support for your business? https://griffithsuazolaw.com/  

Join the TLP Facebook Community, a safe space to ask any questions related to the law or your business: https://tlpfacebook.com/ 

Visit The Legal Paige for contract templates, blogs, and additional legal resources: https://thelegalpaige.com/ 

Follow me on Instagram: instragram.com/thelegalpaige

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