If NDA Means ‘No Digital Awareness’ to You, Then Read This
Written by: Jules Flesner
Over-communicating changes with your team is one of the most important parts of running a successful business. If people don’t know the rules, they can’t follow them. That’s where Non-Disclosure Agreements (“NDAs”) come in.
A Non-Disclosure Agreement is a legal contract where businesses, employees, contractors, or partners agree to keep certain information private.
I spent many years as a commercial film stylist bouncing between the HQ campuses of competing global sportswear brands. Since that work was NDA-protected, I cannot share my set photos publicly. (It’s why you don’t see images from those projects here on this site.) The NDAs I signed were critical for each brand protecting trade secrets. What I saw behind the scenes at one campus—confidential product roadmaps, distribution channel documents, storytelling strategies—never walked with me into the other.
In today’s business world, NDAs need to be updated or added to cover AI tools that employees, vendors, and contractors use every day. This is especially important in industries like property management, finance, and healthcare, where sensitive data is part of the job.
Protecting Sensitive Data
Public AI tools like ChatGPT, Google Gemini, or industry-specific ones like EliseAI or BetterBot process tenant information, lease details, financial data, and internal communications. Without clear NDA language, there’s a risk that:
Employees put confidential data or proprietary design info into AI tools without limits.
Vendors or contractors expose product, resident, or private investment/investor information by mistake.
An updated NDA makes it clear: company data cannot be shared with or through AI systems unless it’s been approved.
Vendor and Third-Party Obligations
Property managers and investment firms often work with outside marketing, leasing, or tech partners. These partners might test or integrate AI tools.
Without NDA terms for AI use, confidential info like investor decks, rent rolls, or tenant communications could leak.
Updated NDAs make vendors promise not to store, train, or misuse your data in AI systems.
Staff Training
It’s too easy for staff to copy/paste private details into ChatGPT without realizing they’re disclosing data. Updated NDAs explain what employees can and can’t do with AI tools. After sign-off, staff needs ongoing training to understand the depth of features within apps and software. If they have been properly trained, their signed NDAs make enforcement possible.
Compliance and Legal Risk
Regulators are still catching up with AI, but data privacy laws already apply. For companies handling sensitive patient, tenant, or financial info, ignoring AI in NDAs can lead to:
Privacy violations
Claims of breaking fiduciary duty
Reputational harm and negative publicity if data leaks
NDAs and Modern AI Company Culture
Non-Disclosure Agreements should never be used to silence workers. Misusing NDAs can damage culture and block employees from raising concerns. Even when this is not the intention, an employee may perceive receiving a request to sign an NDA in this way. Over-communicate with your team during distribution and find a balance to:
Use NDAs to protect your trade secrets and sensitive data, not to silence staff or shield leadership from accountability.
Keep policies clear + transparent so employees know leadership values their voice.
Updating your NDAs for the AI era makes sure patient, tenant, investor + business data is safe. It gives employees and affiliates clear rules, and it mitigates your risk of legal or reputational problems. It shows your company values transparency + trust, two things every modern business needs, whether you have 20 or 20,000 total staff.
Disclaimer: This post is for informational purposes only and is not legal advice. Always consult a qualified attorney for guidance on your business contracts and compliance related to emerging technologies. In case this wasn’t clear, I am not an attorney. I am a Creative Ops Wrangler who makes HR documents and training materials and sales support collateral look sexy and helps companies survive + thrive in the new AI era.