# Contractors Update NDAs for AI Use

A legal advisory from Loeb & Loeb LLP recommends that contractors update both their standard nondisclosure agreements and NDAs received from counterparties to address the use of AI with confidential information. The advisory highlights three areas for contract review: distinguishing public AI tools from approved enterprise systems, defining how AI providers may access and use submitted information, and specifying protections for AI-generated or AI-derived information. For procurement professionals and industry stakeholders, these terms can clarify how sensitive information is handled when AI tools are used during contract performance or business discussions.

- Companies should review standard and counterparty NDAs to determine whether they address AI use with confidential information.
- NDA language can distinguish public tools from approved enterprise systems and define provider access and permitted use of submitted data.
- Organizations may benefit from specifying how confidentiality protections apply to information generated or derived through AI.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence
**Published:** October 20, 2026

### Sources
- [Have You Adjusted Your NDA for AI Yet? | Loeb & Loeb LLP - JDSupra](https://www.jdsupra.com/legalnews/have-you-adjusted-your-nda-for-ai-yet-5502390) - JD Supra