AI in Consumer Bankruptcy Creates Privacy Concerns, Panel Says

July 5, 2024, 9:15 PM UTC

The use of artificial intelligence in consumer bankruptcies poses potential privacy issues, among other concerns, if it’s not done with caution, the head of the Justice Department’s bankruptcy watchdog said Friday.

Individuals use Chapter 13 bankruptcies to reorganize debt under three- to five-year repayment plans, but many cases are filed without an attorney’s assistance. When personal information is uploaded into a program—like ChatGPT—for assistance with plan documents or any legal paperwork, it exposes the consumer to risks, executive director of the US Trustee Program Tara Twomey said during a National Association of Chapter 13 Trustees panel.

Generative AI programs like ...

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