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Why Your AI Policy Gap Is a Legal Time Bomb

The discovery problem nobody’s discussing

Prank Sky Media/Flickr

George Yang
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National Payroll Institute

Wed, 01/07/2026 - 12:02
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Your IT team enabled Copilot and Gemini last quarter without checking with the lawyers. Now your employees are putting company secrets into systems that nobody owns, nobody governs, and nobody can reliably retrieve when opposing counsel sends a subpoena.

ADVERTISEMENT

You have a discovery problem, and it’s hiding in plain sight.

This isn’t a technology problem. It’s a C-suite accountability issue that’s been masquerading as an IT rollout. And if you haven’t thought about it yet, you’re not alone—most enterprise leaders haven’t, either. That’s exactly why the problem is getting worse.

The hidden exposure in everyday AI use 

Here’s what’s actually happening on the ground. Roughly 77% of your employees are pasting sensitive information into AI tools, and about a fifth of those data include payment information or personal identifiers they shouldn’t be touching at all. This isn't done maliciously. They’re just doing it because it’s fast, it works, and they have no idea their “chat” is going to show up in a courtroom someday.

 …

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