Guide
AI Conversations Are Records
Prompts and outputs are stored, can be preserved under a litigation hold and can be ordered produced, as email once was.
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Short Answer
Prompts, outputs, uploaded files and logs can be electronically stored information. Relevant records must be preserved when the governing litigation standard is met, and discovery follows relevance, proportionality and protection rules. In the OpenAI copyright litigation, a broad 2025 preservation order was later narrowed; separate production orders addressed a retained sample of about 20 million logs. That case illustrates both the reach and limits of discovery. A business needs a records policy that identifies AI accounts and vendor copies, plus a hold process that can actually reach them.
Which Laws Apply
Texas AI-specific: none for private businesses; public entities, see Government AI and Public Records.
Generally applicable Texas law: Texas Rules of Civil Procedure on discovery of electronic data (196.4); Texas spoliation law (Brookshire Bros. v. Aldridge, Tex. 2014); Public Information Act for governmental bodies.
Federal: Fed. R. Civ. P. 26, 34 and 37(e).
Why AI Records Are Different From Email
AI use can create candid prompts about legal exposure, successive versions of a document and copies distributed across vendor logs and backups. A records inventory should account for those copies and the terms controlling them. The same workflow that makes retrieval useful can leave evidence of the inputs, the changes and the decision.
The OpenAI Preservation and Production Orders
A May 13, 2025 order in the OpenAI copyright litigation required preservation and segregation of specified output logs that would otherwise be deleted. The October 9, 2025 order in New York Times v. Microsoft, ECF 922, ended the broad ongoing obligation as of September 26 while retaining already segregated material and targeted duties. Separate November 7 production and December 2 reconsideration orders in the MDL concerned a retained sample of about 20 million de-identified logs. The December 2 order, MDL ECF 812, denied reconsideration under case-specific relevance, proportionality and protective-order analysis. Preservation and production are different obligations; neither is a nationwide rule requiring every chatbot provider or user to retain everything.
Those orders bound the AI provider, but the reasoning applies to any business that holds AI records relevant to a dispute.
Preservation Duties
Under Texas law, a party must preserve evidence when it knows or reasonably should know that there is a substantial chance a claim will be filed and that the evidence is relevant; the trial court may remedy spoliation, including through instructions in serious cases. In federal court, Rule 37(e) governs loss of electronically stored information that should have been preserved. A hold notice that lists email and documents but not AI tools leaves a gap. Hold notices should name enterprise AI tools, the vendor’s retention settings and any personal accounts employees use for work.
Discovery
A discovery request can reach AI prompts and outputs if they fall within its terms and governing relevance and proportionality limits. Privacy is part of that analysis, not a categorical answer either way. The OpenAI court ordered specified production under a protective regime; it did not abolish privacy objections in other disputes. Identify the requested account, period, data and alleged relevance, then determine whether filtering, redaction or a protective order is appropriate.
What to Decide Now
Which AI tools are approved for work and which accounts they use.
Retention periods for prompts, outputs and logs, set to business need and legal duty.
How a litigation hold suspends deletion in each tool, including at the vendor.
Whether employees may use personal AI accounts for work; if they do, those records may still be discoverable.
Training that tells employees what AI records are and that they may be read by others.
Real Examples
In re OpenAI (S.D.N.Y. 2025 to 2026): preservation and production of AI logs.
United States v. Heppner (S.D.N.Y. 2026): a defendant’s AI research was not privileged and was available to the government; see Privilege and AI Tools.
What Is Unsettled
How proportionality will limit requests for broad AI logs in ordinary commercial cases; whether courts will require production of AI records from personal accounts used for work.
Sources
- Texas Rules of Civil Procedure
- Federal Rules of Civil Procedure
- Brookshire Brothers v. Aldridge
- New York Times v. Microsoft Preservation Termination Order
- OpenAI MDL Production Reconsideration Order
- Texas Public Information Act
