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AI tools and the record

Pass 2

Do not treat a fluent answer as privileged, public, or safe to delete.

Cooley’s Governance Beat, in a note by Broc Romanek checked on 14 October 2026, says AI prompts may be discoverable and are not necessarily privileged. In an earnout dispute the court quoted the CEO’s AI prompts, and the CEO admitted deleting AI chat logs. The note says the opinion does not establish a new legal standard. Do not infer that every prompt is public, that every prompt is discoverable, or that AI output is privileged. Those answers depend on the facts and the legal rules.

Separate three checks: whether the answer is reliable enough for this decision; whether sensitive or dispute-related material may be supplied to that tool; and which records you will preserve once a dispute is anticipated. Preservation should be lawful and proportionate. Deleting a log, copying a system that is not yours, or publishing the output are decisions to take to counsel. They are not steps this page instructs.

Question. What confidential or dispute-related material should not enter an AI tool, and which AI records must be preserved?

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Sources

  • PractitionerChecked 14 October 2026

    Yes, your CEO’s AI prompts may be discoverable (and can be problematic) · Cooley Governance Beat, Broc Romanek

    A law firm’s commentary. It says AI prompts may be discoverable and are not necessarily privileged, that in an earnout dispute the court quoted the CEO’s AI prompts, and that the CEO admitted deleting AI chat logs. It says the opinion does not establish a new legal standard. The reserved issues in the opinion itself are impairment and damages.

  • Regulatory16 March 2026

    Fortis Advisors LLC v. Krafton, Inc. · Court of Chancery of Delaware

    C.A. No. 2025-0805-LWW, Vice Chancellor Will. Submitted 9 January 2026, decided 16 March 2026. The opinion was read for this pass. Phase One entered judgment that Krafton breached the equity purchase agreement by terminating the key employees without valid cause and by seizing operational control of Unknown Worlds. The remedy is specific performance: Edward Gill is reinstated as CEO with operational authority, and the base earnout testing period is extended by 258 days to 15 September 2026. The opinion says whether Krafton’s actions wrongfully impaired the earnout, and whether any resulting money damages are owed, are reserved for the second phase. One Delaware dispute. Not a rule for other contracts, and not a current docket status.