Operational Report
Why Lawyers Need Private AI (And How to Get It)
Asset
ARMES TeamInduction
January 24, 2026Duration
11 min readIf you're a lawyer using ChatGPT for legal research, document drafting, or case analysis, you may be inadvertently compromising attorney-client privilege. ChatGPT's 30-day data retention, human review practices, and training data collection are fundamentally incompatible with legal confidentiality obligations. This guide explains the specific risks, what bar associations are saying, and how to use AI in legal practice without ethical violations.
The Attorney-Client Privilege Problem
What Privilege Requires
Attorney-client privilege protects confidential communications between lawyers and clients. For privilege to apply, the communication must be: 1) Between attorney and client, 2) Made in confidence, 3) For the purpose of legal advice. The key word is 'confidence.' When you input client information into ChatGPT, you're sharing that information with OpenAI—a third party. This disclosure can waive privilege.
The Third-Party Disclosure Risk
Privilege is generally waived when confidential information is disclosed to third parties. When you use ChatGPT: 1) OpenAI stores your conversation for 30 days, 2) Human reviewers at OpenAI may read it, 3) The information may be used for AI training. Each of these represents a potential third-party disclosure. Even if you strip client names, the legal reasoning and case details could be identifiable.
The Legal Discovery Precedent
In the NYT v. OpenAI case, a federal judge ordered OpenAI to produce 20 million ChatGPT conversation logs. OpenAI fought this and lost multiple appeals. The precedent is now set: ChatGPT conversations can be compelled in legal proceedings. Imagine your opponent's counsel requesting all ChatGPT logs related to your client's matter. Without private inference, those logs exist and can be obtained.
What Bar Associations Are Saying
Emerging Guidance
State bar associations are increasingly issuing guidance on AI tool usage. Common themes include: 1) Lawyers must understand how AI tools handle data before using them, 2) Confidential client information should not be input into AI tools that retain data, 3) Lawyers remain responsible for AI-generated work product, 4) Disclosure to clients may be required when AI is used. The consistent message: standard consumer AI tools aren't designed for legal confidentiality.
Competence Obligations
Model Rule 1.1 requires lawyers to provide competent representation, which now includes understanding technology. Using AI tools without understanding their data practices could itself be an ethical violation. You can't claim competence while unknowingly exposing client confidences. The duty to understand extends to privacy architectures and data handling.
Supervision Requirements
Partners and supervising attorneys have obligations regarding associate and staff AI usage. If your firm hasn't established AI usage policies, confidential information may be flowing through standard ChatGPT accounts right now. The exposure is firm-wide, not just individual. One associate's casual ChatGPT usage could compromise multiple client matters.
Specific Risk Scenarios
Legal Research
Using ChatGPT to research case law seems harmless—until you ask 'What are the defenses to securities fraud in a case where the CEO knew about accounting irregularities?' That question reveals your case theory, your client's potential liability, and your defense strategy. All now stored by OpenAI for 30 days, potentially reviewed by humans, and possibly used for training.
Document Drafting
Asking ChatGPT to help draft a complaint, contract, or brief often requires inputting case-specific facts. 'Draft a motion to dismiss in a medical malpractice case where the surgeon left a sponge in the patient during a gallbladder removal at St. Mary's Hospital on June 15, 2025.' You've just disclosed the incident, the defendant facility, and the date—enough to identify the matter.
Strategy Analysis
Perhaps most dangerous: using AI to analyze case strategy. 'Given these facts [detailed facts], what's the best approach for settlement negotiations?' You're now sharing your case assessment, your client's position, and your strategic thinking with a third party. If opposing counsel could request these logs, they'd have your entire playbook.
The Solution: Private Inference AI
What Private Inference Provides
Private inference AI endpoints process your request and immediately incinerate it. No 30-day retention. No human review. No training data. No profiles built. The AI processes your query, returns a response, and the interaction is architecturally erased. Data that doesn't exist cannot be disclosed, discovered, or used to waive privilege.
Same Capability, Different Architecture
Private inference doesn't mean sacrificing AI capability. You're accessing the same ChatGPT, Claude, and Gemini models — the same legal reasoning, the same research capability, the same drafting assistance. The only difference is data handling. You get enterprise-grade privacy with consumer-grade accessibility.
How ARMES Implements Private Inference for Legal
ARMES uses private inference across all AI requests. For lawyers, this means: 1) Research legal questions without disclosing case theories, 2) Draft documents without exposing confidential facts, 3) Analyze strategy without creating discoverable records, 4) Maintain privilege while gaining AI productivity benefits. The architecture eliminates the ethical concerns that standard AI tools create.
Practical Implementation for Law Practices
For Solo Practitioners
If you're a solo attorney, you control your own AI usage. Switch to private inference immediately. The cost difference between ChatGPT Plus ($20/month) and ARMES Pro ($19/month) is negligible, and the risk elimination is significant. You get more models (ChatGPT, Claude, Gemini) with better privacy for the same price.
For Firm Leadership
Partners and managing attorneys should: 1) Audit current AI usage across the firm, 2) Establish clear AI usage policies, 3) Provision private inference tools for all attorneys and staff, 4) Include AI data practices in client engagement letters if appropriate. The cost of firm-wide private inference access is trivial compared to malpractice exposure.
For In-House Counsel
Corporate legal departments face similar risks. Every time in-house counsel uses ChatGPT for company legal matters, they're potentially exposing privileged communications. The solution is the same: private inference platforms that provide AI capability without data retention. Work with IT to provision appropriate tools.
Executive Summary
The legal profession is being transformed by AI, but the transformation must happen responsibly. Standard consumer AI tools like ChatGPT weren't designed for legal confidentiality — they were designed to collect training data and build user profiles. For lawyers, this creates unacceptable risks to attorney-client privilege, client confidentiality, and professional ethics. Private inference solves this problem architecturally, not just through policies. The same AI capability, without the data exposure. The technology exists. The ethical path is clear.
Protect your practice with private AI. ARMES provides lawyers access to ChatGPT, Claude, Gemini, and more through private inference. Never seen by others, profiled, or monetized. Start your free trial at armes.ai.
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