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

By Ryan Wentzel
2 Min. Read
#legal-security#data-encryption#SOC-2#client-confidentiality#legal-ethics
'My Client's Data Is on Your Server?' Answering the #1 Security Question

Table of Contents

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.

Modern Security Architecture

Zero-Knowledge Encryption

Your data is encrypted before it leaves your computer. The AI provider never has access to unencrypted content. Even if servers are compromised, data remains protected.

On-Premise Deployment

For highly sensitive matters: AI runs entirely within your own infrastructure. Data never leaves your network. You maintain complete control.

SOC 2 Type II Compliance

Independent verification of security controls and data handling. Annual audits ensure continuous compliance.

Granular Access Controls

Role-based permissions ensure only authorized users access specific contracts or matters. Audit trails track 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

Legal precedent: Courts recognize AI tools as attorney work product, not privilege waiver.

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: Modern AI platforms are 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?


Continue the Series:

#legalSecurity #dataEncryption #SOC2 #clientConfidentiality #legalEthics

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Ryan Wentzel

About Ryan Wentzel

Ryan previously served as a PCI Professional Forensic Investigator (PFI) of record for 3 of the top 10 largest data breaches in history. With over two decades of experience in cybersecurity, digital forensics, and executive leadership, he has served Fortune 500 companies and government agencies worldwide.