Source: The National Law Review

The National Law Review discusses a burgeoning wave of privacy litigation targeting AI-powered transcription services, specifically focusing on a recent class action lawsuit filed against Otter.ai. The plaintiffs allege that the "AI Notetaker" service violates state wiretapping laws, such as the California Invasion of Privacy Act (CIPA), by recording conversations without the express consent of all participants. The core legal issue is whether the automated nature of the tool exempts it from traditional requirements for two-party consent in recording confidential communications.

The article explores the broader implications for businesses that utilize such AI assistants in meetings involving clients or third parties. It warns that companies may unwittingly expose themselves to significant liability if they fail to provide adequate notice or obtain necessary permissions before activating AI recording tools. This litigation trend underscores the tension between the convenience of AI productivity tools and rigorous data privacy statutes, suggesting that updated terms of service and user interface warnings may be necessary to mitigate legal risks.