Is It Safe to Share Firm Data With AI Companies? A Confidentiality Checklist

It can be done safely, but only if you go slowly, keep client information out, and get every term in writing. Doing it safely matters more than doing it fast. This checklist is for owners and managing partners of law and accounting firms who are weighing whether to license any firm records to an AI data buyer.

It is general information, not legal or tax advice. Rules about privacy and client data differ by state, country and profession, so have your own attorney review any data license before you sign.

Start with what you are actually sharing

“Sharing firm data” sounds broader than it should be. What buyers look for from professional firms is usually how the work gets done: your own templates, process records, review steps and billing workflows. Client information stays out.

Licensing means giving a buyer permission to use a copy of agreed data, for a set purpose, for a set time, under written rules. You are not selling your firm, and you are not handing over your clients.

Know your professional duties

For lawyers, ABA Model Rule 1.6 bars revealing information relating to the representation of a client without informed consent or another listed basis, and requires reasonable efforts to prevent inadvertent or unauthorized disclosure. (ABA Model Rule 1.6) ABA Formal Opinion 512 (2024), which addresses lawyers’ use of generative AI tools, advises reading and understanding the terms of use, privacy policy and related contract terms of any AI tool, and evaluating who could access information that goes into it. (ABA Formal Opinion 512)

For CPAs, the AICPA’s Confidential Client Information Rule (1.700.001) says members in public practice shall not disclose confidential client information without the client’s specific consent. (AICPA Code of Professional Conduct)

These rules are why the safe starting point is the firm’s own operational knowledge, with client confidences left out entirely.

The six-point safety checklist

Work through these before a single file leaves your firm. Each is easier to fix before a contract is signed than after.

1. Ownership: who owns it?

Check contracts with clients, vendors and software providers. Owning the server is not the same as owning the right to license what is on it.

2. Privacy: is anyone identifiable?

Names, addresses, phone numbers, emails and ID numbers must be removed or left out. If you are not sure, leave it out.

3. Data hygiene: is it really clean?

Look for hidden fields, free-text notes and attachments. Personal details hide in odd places, such as document metadata, comments and file names.

4. Commitments: do your promises allow it?

Read your engagement letters, privacy notices and client agreements. If they do not cover licensing, stop and ask your attorney.

5. Terms: what exactly is the license?

How long? For what use? Exclusive or not? Can the buyer resell? Can you still use your own data? Get every answer in writing.

6. Control: can you stay in charge?

You choose what is shared. You should have a way to ask questions, check use, and end the deal if terms are broken.

How protection works in practice

A careful process looks like this:

• Data is reviewed before anything is shared.
• Names and private details are removed first. Your IT person or a partner can do the heavy lifting.
• Your firm approves what goes out. Only the data you approved moves, and only after signing.
• Terms are put in writing, and your lawyer reviews them.

Questions to ask any buyer or partner

• Who are the buyers, and what will they use the data for?
• Is the license exclusive, and can the buyer resell the data?
• How is the data cleaned, and who checks that private details are gone?
• How and when do I get paid? What costs do I owe, if any?
• Can I still use my own data for my own business?
• Can I stop the deal if the rules are broken?
• Will you put all of this in writing?

If a partner cannot answer, treat that as a warning sign.

Common worries

Am I selling my firm’s data forever? Usually not. A license gives a buyer limited rights for a set use and time. You should keep your own copy, and the contract should say so.

Could my competitors get my data? That depends on the terms. Ask who the buyers are, whether they can resell it, and what limits are written in.

What if I decide not to go ahead? Then you do not. A free check does not commit you to anything.

The bottom line

Sharing firm data with AI companies is safest when it is narrow (your own processes and templates, not client files), cleaned and approved by you, and governed by written terms your lawyer has read. It is free for the business; the buyer pays, and no one should promise you acceptance or a dollar figure before a review.

Get the free guide for the full checklist, or book a free 20-minute call. Related: How accounting firms can earn from operational data.