As businesses embrace tools like Microsoft Copilot and ChatGPT for communication, a new layer of concern has emerged—ai email legal risk. While AI tools can streamline productivity, they also introduce potential liability in areas like defamation, intellectual property, and privacy law. Business owners need to understand what’s at stake when machine-generated content becomes part of their daily operations.
What Could Go Wrong?
AI-generated emails may seem polished, but they can still include inaccuracies, biased language, or improperly reused content. If your business sends out information generated by AI without proper oversight, you may be held responsible—even if the mistake wasn’t written by a human employee. This includes statements that could be interpreted as defamatory, violate copyright laws, or disclose confidential or protected information.
Top Legal Risks to Watch
- Defamation: If an AI-generated message includes false or damaging claims about a person or company, your business may be liable—even if there was no intent to harm.
- Copyright Infringement: AI tools may unknowingly replicate phrases, ideas, or materials that are under copyright protection, opening you to legal action.
- Data Privacy Violations: Emails that disclose personal information about employees or clients may breach regulations like GDPR, HIPAA, or the CCPA.
- Misrepresentation: If AI creates inaccurate claims in marketing or sales emails, this can lead to regulatory scrutiny or legal disputes.
Real-World Examples
In one case, a law firm’s automated follow-up emails—written by AI—incorrectly implied that a client had missed a payment deadline. The client sued for defamation, claiming reputational damage. In another instance, a company using generative AI received a cease-and-desist letter after AI-created marketing content closely resembled material from a competitor’s campaign.
Best Practices for Business Leaders
1. Always Review Before Sending
Never allow AI-generated emails to be sent without human review. Designate responsible team members to edit and approve content—especially anything external-facing.
2. Train Your Team on Risk Awareness
Ensure employees understand the limitations of AI. Conduct training to help staff identify red flags, including misleading statements, confidential data, or legal gray areas.
3. Keep Records of AI Outputs
Maintain an archive of AI prompts and generated content. If legal issues arise, you’ll want a full audit trail to demonstrate your review process and intent.
4. Disclose When Appropriate
In certain industries, it may be necessary—or simply good practice—to disclose when content is AI-assisted. This can build trust with clients and reduce risk.
5. Avoid Using AI for Sensitive Topics
Do not rely on AI tools to draft emails involving legal, financial, HR, or regulatory content. These areas carry too much nuance and liability to automate without oversight.
Helpful Resource
For a legal perspective on these risks, this article from Keystone Law provides a valuable overview of AI liability in professional communication:
The Risks of AI for Business
Where Cost+ Can Help
Through Security+, Cost+ helps companies establish safe AI usage policies, train staff, and audit communication practices to stay ahead of emerging risks.
Bottom Line
The rise of AI in business communication introduces both opportunity and risk. By understanding and addressing ai email legal risk, your company can benefit from efficiency gains without exposing itself to costly legal exposure.
By Thomas McDonald
Vice President