Bloomberg Law

What Is AI-Powered Inferred Data and Why It’s a Growing Privacy Risk Over the past year, a quieter but significant privacy issue has started to surface in consumer technology: the ability of artificial intelligence to infer sensitive personal information from seemingly harmless data. Unlike traditional data collection—where you knowingly provide your name, email, or payment details—inferred data is entirely generated. Companies feed innocuous pieces of information into AI models, which then predict things like your health status, political leaning, income bracket, or even sexual orientation. ...

Judges Are Banning Public AI in Discovery – Here’s Why Privacy Is the Core Concern In recent weeks, a growing number of federal and state judges have issued orders restricting the use of publicly available AI tools—such as ChatGPT, Claude, or Gemini—during discovery in civil litigation. These orders, reported by Bloomberg Law on June 5, 2026, are not blanket prohibitions of all AI, but they zero in on the privacy risks that arise when sensitive legal documents are processed through cloud-based models. ...