Conor Desmond Comments How Privilege Ruling Could Affect AI Policies in Law360

A New York federal court ruling denying privilege to a client's communications with an artificial intelligence platform could prompt tax practitioners to reconsider such technology's use in sensitive matters and update client agreements to clarify their AI policies.

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Although the Heppner decision did not address tax advice privilege, and no tax cases have yet examined confidentiality issues involving AI communications, the ruling underscored the need to consult attorneys or other authorized practitioners for tax and legal advice, according to Conor Desmond of Caplin & Drysdale.

"Keeping a human in the loop does allow for more protection under privilege" than getting an answer from an AI platform, he said.

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