This is a completely straightforward application of existing law on privilege. To maintain privilege, among other things, communications must be confidential.

Chatting with Claude breaks confidentiality: chats with Claude are subject to arbitrary inspection by Anthropic employees, not to mention the issue of model training.

You can use self-hosted LLMs without breaking privilege. And funny enough, law firms like Latham & Watkins are now buying Nvidia GPU clusters for this purpose.

> communications must be confidential.

Email and phone calls are considered confidential, even though it is possible for vendors to inspect the communication. I expect AI use will be tested legally, but once precedence has been established in court it will become a common practice.