>> Executives and corporate boards generally expect conversations with their legal team about legal matters to have attorney-client privilege. They lose that protection if they share the same information with outside parties — and it’s possible that an A.I. note taker could have the same effect.

Total oversimplification. The fact is the privilege is a rule totally in the hands of the court. Every time a new communications technology come up, someone shouts about privilege but the courts still accept it. (Telephones, cell phones, emails, IMs, zoom court, each have had their day in the A-C privilege debate and been accepted.) What matters is that the parties intended and expected communications to be privileged.

As an example. I had a crim law prof who had been a NYC public defender in the 70s/80s. She had regularly interviewed clients at Rikers Island. All interviews were listened to by guards and she said you could even pay to get a copy of the recording. But these interviews were still covered by attorney-client privilege. No court would allow such evidence, but that doesn't mean that the prison could not use it for jail safety. Why does this matter: Because the presence of a third party doesn't mean anything. This isn't magic. An eavesdropper does not nullify the spell. Whether something is or is not privileged depends on the rules followed in the local jurisdiction, and no jurisdiction has ever followed a simplistic "presence of a third part" rule.

Until someone demonstrates an example of an AI actually leaking privileged information, courts are going to chalk it up as just another electronic tool for recording communications.