06/10/2026
Using Public AI Tools Can Undercut Trade Secret Protection
Employers should treat employee use of public generative AI tools as a live trade secret risk, because entering source code, customer data, or strategy materials into external platforms can weaken the “reasonable measures” showing required under the DTSA and state trade secret law. The safer approach is to pair narrowly tailored AI-use policies with vendor review, technical controls, documented training, and updated confidentiality agreements, while avoiding overbroad rules that could also create NLRA issues.
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Every time an employee pastes proprietary source code, a customer list, or a confidential business strategy into ChatGPT, Claude, or Google Gemini…