The Preservation Order: A Game-Changer for AI Data Governance

On May 13, 2025, Magistrate Judge Ona T. Wang issued a preservation order that would become a landmark moment in AI data management. The order, which applies to over 400 million users worldwide, requires OpenAI to retain all ChatGPT conversation logs. This unprecedented ruling has significant implications for organizations that use AI solutions, as it highlights the need for robust data governance frameworks and the importance of understanding the intersection of AI technology, privacy rights, and legal discovery obligations.

The Context: A Global Data Privacy Conflict

The New York Times v. OpenAI litigation has been a global data privacy conflict that has garnered significant attention. However, it has rapidly evolved into a watershed moment for AI data management. When the court issued the preservation order, it inadvertently created a new standard for AI data preservation that will inform how enterprises approach AI and data governance.

• OpenAI’s chatbot has over 800 million weekly users, making it the most widely used AI chatbot worldwide.
• The preservation order has critical implications for virtually all companies that use AI, as it raises questions about data sovereignty, litigation preparedness, and the balance between innovation and legal compliance.

The Preservation Order: A Turning Point in AI Data Management

The preservation order, which was issued after The New York Times alleged that OpenAI was systematically destroying evidence by deleting user conversations that might demonstrate copyright infringement, has significant implications for organizations that use AI solutions. The order requires OpenAI to retain all ChatGPT conversation logs, which is unprecedented in AI litigation.

OpenAI’s Response: A Shift in Perspective

OpenAI has responded to the preservation order by arguing that it is a disproportionate burden and that the order violates established proportionality standards in federal discovery. The company has also stated that the preservation order would force it to disregard legal, contractual, regulatory, and ethical commitments to hundreds of millions of people, businesses, educational, and governments around the world.

OpenAI’s CEO, Sam Altman, has also taken to social media to discuss a potential “AI Privilege” to protect sensitive conversations from disclosure. However, no such privilege has been recognized by a U.S. court.

The Implications: A New Era in AI Data Governance

The preservation order has significant implications for organizations that use AI solutions. It highlights the need for robust data governance frameworks and the importance of understanding the intersection of AI technology, privacy rights, and legal discovery obligations.

• The preservation order raises questions about data sovereignty, litigation preparedness, and the balance between innovation and legal compliance.
• The order requires organizations to consider the potential risks and benefits of using AI solutions and to develop strategies for managing those risks.

Conclusion

The New York Times v. OpenAI preservation order is a significant milestone in AI governance. It has highlighted the need for robust data governance frameworks and the importance of understanding the intersection of AI technology, privacy rights, and legal discovery obligations. As organizations navigate this new landscape, they must consider the potential risks and benefits of using AI solutions and develop strategies for managing those risks. The preservation order also reveals a new range of issues that will factor into due diligence calculations for M&A transactions, the decision to enter joint ventures, and vendor selections where AI systems process sensitive data. Companies evaluating potential acquisitions must now assess not only an AI system’s capabilities, but its litigation exposure and data retention architecture. Similarly, vendor contracts that seemed prudent yesterday may prove inadequate tomorrow if they lack provisions for discovery cooperation, data segregation, or jurisdiction-specific privacy compliance. As AI adoption continues to grow, it is essential that organizations understand the importance of data governance and the need for robust frameworks that can manage the risks and benefits associated with AI technology. By doing so, they can ensure that they are prepared for the inevitable discovery challenges ahead.