'My Client's Data Is on Your Server?' Answering the #1 Security Question

Table of Contents

• The Security Conversation
• What to Ask an AI Vendor About Security
  • Encryption
  • Deployment Options
  • Independent Assurance
  • Access Controls
• Protecting Attorney-Client Privilege
• Security Best Practices
• Comparative Security: AI Platform vs. Email
• What's Next?

The Security Conversation

Every General Counsel asks the same question: "Where does my contract data go when I upload it to your AI platform?"

The concern is valid. One breach could destroy firm reputation and violate attorney-client privilege.

What to Ask an AI Vendor About Security

This is general guidance on what to ask any vendor. It describes no specific Lawvora or Wentzel product property.

Encryption

Ask how data is encrypted in transit and at rest, and who can see it in plaintext. An AI model has to read the text to analyze it, so ask exactly which sub-processors process your documents and under what terms.

Deployment Options

For highly sensitive matters, ask whether the model can run within your own infrastructure, and what data (if any) leaves your network.

Independent Assurance

Ask for the vendor's current audit status in plain terms, for example whether a SOC 2 Type II report has actually been issued and for what period, rather than relying on "compliant" or "certified" labels.

Access Controls

Ask whether role-based permissions limit who can access specific contracts or matters, and whether audit trails record every action.

Protecting Attorney-Client Privilege

Critical distinction: AI analyzing contracts ≠ third-party accessing contracts.

Proper implementation:

• AI operates as extension of attorney work
• Processing under attorney control
• No human review by AI provider
• Privilege maintained throughout analysis

Check your jurisdiction: Whether privilege and work-product protection survive depends on the jurisdiction, the vendor's terms, and how the tool is used. Confirm with ethics counsel before uploading privileged material.

Security Best Practices

Vendor Due Diligence:

• Request SOC 2 reports
• Verify encryption standards
• Confirm compliance certifications
• Review data breach history

Contractual Protections:

• Data processing agreements
• Breach indemnification
• Audit rights
• Guaranteed data deletion

Internal Policies:

• Define uploadable data
• Establish approval workflows
• Train users on protocols
• Regular security audits

Comparative Security: AI Platform vs. Email

Surprising reality: A well-configured AI platform can be more secure than standard email for contract sharing.

Email Risks:

• Unencrypted transmission
• Stored on multiple servers
• Forwarded without control
• No access revocation

AI Platform Security:

• End-to-end encryption
• Controlled access
• Revocable permissions
• Complete audit trails
• Automatic data retention compliance

What's Next?

Security enables adoption, but what about liability? If AI makes a mistake, who's responsible?

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Continue the Series:

• Next: AI Liability: When the Algorithm Gets It Wrong
• Previous: AI-Powered Collaboration

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