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“Listen Up” if Your AI Policy Does Not Cover AI Recording Issues – Another Class Action Lawsuit Filed Over Third Party AI Recording Service

July 9, 2025
Estimated Read Time: 2 mins

The use of AI recording tools has become prevalent. Companies’ policies addressing the legal issues with these tools is not yet as prevalent. If your company’s AI policy does not address these issues, it needs to be updated. A recently filed class action stems from one fact scenario where legal issues may arise. It is not the first suit against AI recording and it will not be the last. The lawsuit claims violation of the Federal Wiretap Act. 18 U.S.C. § 2510 et seq based on use of a third party service that records and perform AI analysis on calls between a dental company and its patients. Details of this lawsuit are provided below. However, it is important to understand that if your company or your employees use AI recording tools or notetakers, you need to ensure that your AI policy covers all of the necessary issues. These issues can include at least: i) managing and documenting notice and consent; ii) dealing with nonconsenting parties participating in a call being recorded; iii) inaccuracies of AI generated transcripts and summaries; iv) AI generated sentiment analysis/emotion detection; v) confidentiality and privilege issues; vi) retention and/or deletion of recordings; vii) vendor diligence on these tools and approval process for specific tools; and viii) knowing the technical features of some tools that can help mitigate risk and others that can create more risk.

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Tags: Artificial Intelligence, Courts

Disclaimer: This alert is provided for information purposes only and does not constitute legal advice and is not intended to form an attorney client relationship. Please contact your Sheppard attorney contact for additional information.

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