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ARTICLE · 26 OCTOBER 2026

AI And Nondisclosure Agreements: Is Your NDA Ready For AI?

Klemchuk
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As artificial intelligence tools become embedded in everyday business operations, many companies face a critical question: do their existing nondisclosure agreements adequately protect confidential information from AI-related risks? This analysis examines how traditional NDA provisions apply to AI use cases, from uploading sensitive data into generative AI platforms to using information for model training, and provides practical guidance for updating contractual protections.

United StatesTechnology
Mark Stachiw
Mark Stachiw

Your company signed an NDA five years ago. Today, someone on the other side uploads your confidential information into an AI tool to summarize it. Did the NDA prohibit that? 

Nondisclosure agreements (“NDAs”) are routine in many business and legal activities, from interactions with suppliers and customers to mergers and acquisitions. While critical to preserving confidential information, many companies have not updated their form NDAs to account for artificial intelligence (“AI”) tools that have become part of everyday business operations. 

As a result, many NDAs are silent on whether a recipient may run confidential information through an AI tool, what kind of AI tool may be used, or whether the information may be used to train an AI model. Counsel should review both currently effective NDAs and form NDAs in light of the rapidly growing use of AI. 

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