Federal Courts Impose AI Restrictions in Discovery to Address Privacy Concerns
Federal courts are increasingly imposing restrictions on the use of generative artificial intelligence (AI) in litigation to manage privacy risks. Recent decisions in Jeffries v. Harcros Chemicals, Inc. and Morgan v. V2X, Inc. illustrate this trend. These courts have used protective orders to set boundaries on how litigants can use AI tools when handling discovery materials. The courts concluded that the confidentiality and data privacy risks associated with public AI tools justify these protective measures. In Jeffries, the court prohibited the use of public AI tools for uploading discovery documents, citing risks such as data exposure and difficulty in retracting data once used in AI training. Morgan's decision emphasized the importance of AI vendor terms and data-handling practices, requiring that AI tools meet specific contractual requirements to protect confidential information. 
