With the rapid improvement and deployment of generative artificial intelligence (AI) technology, many companies are grappling with balancing AI’s benefits against its risks. Much of the discussion surrounding generative AI has focused on copyright and privacy concerns. For some companies, generative AI may pose another danger that deserves attention: losing potential trade secret protections over valuable business information, such as proprietary code.

Concerns over possible AI-related data leaks raise the spectre of damaging public disclosure of valuable business secrets. Perhaps less appreciated is that even without any public “leaks,” the mere disclosure of a business secret to a generative AI program may, absent proper protections, undermine or even cancel out efforts to safeguard that information legally as a trade secret.

Trade Secret Law