Is AI Transcription Safe? Security & Privacy Guide
You're considering AI transcription for your organization. The productivity benefits are clear—automated meeting notes, searchable recordings, reduced documentation time. But your security team has questions you can't answer: Where does the data go? Who can access it? What happens if there's a breach?
These concerns aren't theoretical. A 2024 lawsuit against Otter.ai alleges the service recorded conversations without proper consent and used that data to train its models. Whether the allegations hold up in court, they highlight the risks organizations face when adopting AI transcription without proper due diligence.
This guide covers the real security and privacy considerations for AI transcription—not marketing claims, but the questions you need to answer before deployment.
Quick Navigation
- The Real Risks of AI Transcription
- Data Retention: Where Your Recordings Go
- Consent Requirements You Can't Ignore
- Legal Discovery: The Hidden Liability
- Enterprise Security Checklist
- Vendor Evaluation Framework
- Industry-Specific Considerations
- BrassTranscripts Privacy Approach
- FAQ
The Real Risks of AI Transcription
According to Fordham University's Privacy Office, AI notetakers introduce several categories of risk that organizations must evaluate:
Data Security Vulnerabilities
- Cloud storage of recordings increases attack surface
- Third-party processing introduces additional breach vectors
- Metadata retention (even after content deletion) creates exposure
Regulatory Compliance Gaps
- FERPA implications for student information
- GDPR/CCPA requirements for personal data
- HIPAA restrictions on protected health information
- Industry-specific regulations (financial services, legal)
Consent and Legal Risks
- Recording without proper consent can violate wiretapping laws
- Attorney-client privilege may be compromised
- Transcripts become discoverable in litigation
AI Training Concerns
- Some services use customer data to improve models
- "Deleted" content may persist in training datasets
- Model outputs could theoretically reproduce sensitive information
The Perkins Coie analysis of AI transcription litigation risks highlights that AI transcription records increase a business's logistical burdens and create written records that any attendee can save—expanding the universe of potentially discoverable materials.
Data Retention: Where Your Recordings Go
Not all AI transcription services handle data the same way. Understanding retention policies is essential for risk assessment.
What Vendors Typically Store
Audio/Video Files
- The original recording you upload or the meeting recording
- Storage duration varies from 24 hours to indefinite
- May be retained for quality assurance or model training
Transcripts
- The text output of transcription
- Often stored longer than audio for user access
- May be searchable across your organization's history
Metadata
- Timestamps, participant names, meeting titles
- Integration data (CRM records, calendar info)
- Usage analytics and access logs
Model Training Data
- Some services explicitly use recordings to improve AI
- Others claim no training use but retain data
- Deletion doesn't guarantee removal from trained models
Questions to Ask Vendors
- How long do you retain audio recordings after transcription?
- How long do you retain transcript text?
- Is our data used to train or improve your AI models?
- What happens to our data if we cancel our subscription?
- Can we request complete data deletion, and how is it verified?
- Where is data physically stored (which countries/regions)?
- Who at your company can access our recordings and transcripts?
Retention Policy Comparison
| Service | Audio Retention | Transcript Retention | Training Use |
|---|---|---|---|
| BrassTranscripts | 24 hours | 48 hours | No |
| Otter.ai (Free) | Indefinite | Indefinite | See ToS |
| Otter.ai (Enterprise) | Configurable | Configurable | No (with BAA) |
| Fireflies.ai (Free) | Account lifetime | Account lifetime | See ToS |
| Fireflies.ai (Enterprise) | Configurable | Configurable | No |
Note: Policies change. Always verify current terms before deployment.
Consent Requirements You Can't Ignore
Recording and transcribing conversations creates legal obligations that vary by jurisdiction and context.
One-Party vs All-Party Consent
One-Party Consent States/Countries: One participant can record without informing others. However, this doesn't mean you should—professional and ethical standards typically require disclosure.
All-Party Consent Jurisdictions: All participants must consent to recording. Violating this can result in civil and criminal liability.
According to Michael Best's legal analysis, organizations should:
"Require explicit consent from all meeting participants before enabling transcription services... through either verbal consent at the beginning of the meeting or written consent beforehand as part of a broader acceptable-use policy."
Best Practices for Consent
Before Recording:
- Announce that the meeting will be recorded and transcribed
- Explain how the recording will be used and stored
- Give participants the option to decline or leave
- Document consent (verbal acknowledgment is often recorded)
For External Participants:
- Include recording disclosure in meeting invitations
- Use calendar invite descriptions to notify attendees
- Consider written consent for sensitive discussions
For Employees:
- Establish clear policies in employee handbook
- Provide training on consent requirements
- Create opt-out procedures for sensitive meetings
The Bot Announcement Problem
AI meeting assistants like Fireflies and Otter send automated announcements when joining meetings: "This meeting is being recorded by [Service]." This creates a visible record that disclosure occurred, but:
- Participants may not understand what "recorded" means
- Automated messages don't explain data handling
- Silent acceptance isn't the same as informed consent
Consider whether automated disclosure meets your organization's consent standards.
Legal Discovery: The Hidden Liability
Once AI transcription generates text records of your meetings, those records become potentially discoverable in litigation.
What Can Be Subpoenaed
AI transcription creates multiple categories of potentially discoverable data:
- Transcripts of meetings discussing disputed matters
- Audio recordings if retained by the service
- Metadata showing who attended, when, and for how long
- Search queries run against transcript databases
- AI-generated summaries and action items
Litigation Hold Complications
When litigation is reasonably anticipated, organizations must preserve relevant documents—including AI transcripts. This creates several challenges:
Over-Preservation: Automatic transcription of all meetings generates massive amounts of potentially discoverable material that wouldn't exist without the technology.
Deletion Risks: If you delete transcripts after a litigation hold should have been in place, you risk sanctions for spoliation of evidence.
Vendor Dependencies: Your ability to preserve data depends on the vendor's retention and export capabilities.
Risk Mitigation Strategies
- Selective Deployment: Don't transcribe meetings where sensitive legal discussions occur
- Retention Limits: Choose services with short retention periods to minimize exposure
- Legal Review: Consult counsel before implementing organization-wide transcription
- Policy Documentation: Create clear policies about which meetings should (and shouldn't) be transcribed
Enterprise Security Checklist
Before deploying AI transcription, your security team should verify:
Infrastructure Security
- SOC 2 Type II Certification: Independent audit of security controls
- Encryption at Rest: Data encrypted when stored
- Encryption in Transit: TLS 1.2+ for all data transmission
- Geographic Data Residency: Data stored in approved regions
- Penetration Testing: Regular third-party security assessments
Access Controls
- SSO Integration: SAML/OAuth for identity management
- Role-Based Access: Granular permissions for transcript access
- Audit Logging: Complete logs of who accessed what
- MFA Support: Multi-factor authentication available
- IP Restrictions: Ability to limit access by network
Compliance Capabilities
- BAA Available: For HIPAA-covered entities
- DPA Available: For GDPR compliance
- Data Export: Ability to extract all organizational data
- Data Deletion: Verified deletion on request
- Retention Controls: Configurable retention periods
Vendor Risk
- Financial Stability: Vendor likely to remain operational
- Breach History: Past security incidents and response
- Insurance Coverage: Cyber liability insurance in place
- Subprocessor List: Transparency about third parties
- Exit Strategy: Data portability if changing vendors
Vendor Evaluation Framework
Use this framework to compare AI transcription vendors on security criteria:
Tier 1: Must-Have (Eliminate vendors missing these)
| Criterion | Question | Red Flag |
|---|---|---|
| Encryption | Is data encrypted at rest and in transit? | "We use standard security" (vague) |
| Data Location | Where is data physically stored? | "Various global locations" (unclear) |
| Retention | How long is data kept? | "Until you delete it" (indefinite) |
| Training Use | Is our data used for AI training? | No clear answer in ToS |
Tier 2: Should-Have (Weight heavily in evaluation)
| Criterion | Question | Better Answer |
|---|---|---|
| Compliance | What certifications do you hold? | SOC 2 Type II, ISO 27001 |
| Audit Logs | Can we see who accessed transcripts? | Yes, with export capability |
| Deletion | How do you verify data deletion? | Documented process with confirmation |
| Breach Response | What's your incident response plan? | Published policy with timelines |
Tier 3: Nice-to-Have (Differentiate top vendors)
| Criterion | Question | Enterprise Feature |
|---|---|---|
| Private Hosting | Can we use our own cloud? | Yes, supports private deployment |
| Key Management | Can we manage encryption keys? | Customer-managed keys supported |
| API Access | Can we automate compliance checks? | Full API for audit automation |
| Custom Retention | Per-meeting retention settings? | Yes, granular control |
Industry-Specific Considerations
Healthcare (HIPAA)
If transcripts contain Protected Health Information (PHI):
- BAA Required: Must have Business Associate Agreement
- Access Controls: Minimum necessary access principle
- Audit Requirements: 6-year retention of access logs
- Breach Notification: 60-day notification requirement
Most consumer AI transcription services are NOT HIPAA compliant. Enterprise tiers with BAAs are required for PHI.
See our Healthcare AI Transcription HIPAA Guide for detailed requirements.
Financial Services
If transcripts involve client financial discussions:
- SEC Recordkeeping: Retention requirements for communications
- FINRA Supervision: Supervisory review obligations
- Client Confidentiality: Fiduciary duty to protect information
- Vendor Due Diligence: Regulatory expectation for third-party risk
Legal
If transcripts involve attorney-client communications:
- Privilege Risk: Transcription may waive privilege if improperly secured
- Work Product: AI-generated summaries may be discoverable
- Conflicts: Multi-matter access controls essential
- Ethical Rules: State bar requirements for data security
Education (FERPA)
If transcripts involve student information:
- Directory Information: Limited disclosure without consent
- Education Records: Strict access controls required
- Parental Rights: Access rights for parents of minors
- Vendor Agreements: FERPA-compliant data agreements needed
BrassTranscripts Privacy Approach
BrassTranscripts takes a minimalist approach to data retention:
24-Hour Audio Deletion: Source audio files are permanently deleted within 24 hours of upload. We don't retain recordings for quality assurance, training, or any other purpose.
48-Hour Transcript Deletion: Transcript text is permanently deleted within 48 hours. Download your files immediately—they won't be available after this window.
No Account Required: You can transcribe files without creating an account. No email collection, no profile data, no usage tracking tied to identity.
No AI Training: Your data is not used to train or improve our AI models. Period.
Processing Only: We process your file, deliver the transcript, and delete everything. No long-term storage, no searchable archives, no meeting history.
When This Approach Works
✅ One-time transcription projects: Research interviews, podcast episodes, archived recordings
✅ Privacy-sensitive content: When you need transcription without cloud storage
✅ Compliance simplicity: Minimal data retention reduces compliance burden
When This Approach Doesn't Work
❌ Meeting history access: No archive to search past transcripts
❌ Team collaboration: No shared workspace or permissions
❌ Integration needs: No CRM, calendar, or tool integrations
The tradeoff is intentional: maximum privacy means minimum features. If you need collaboration and integrations, enterprise services with longer retention are designed for that use case.
FAQ
What's the safest AI transcription option?
"Safe" depends on your threat model. For minimal data exposure, choose services with short retention periods and no AI training use. For enterprise compliance, choose vendors with SOC 2 certification, BAA availability, and configurable retention.
Can AI transcription services read my transcripts?
Typically, vendor employees can access customer data for support and troubleshooting unless explicitly restricted. Enterprise contracts often include provisions limiting employee access. Review the vendor's privacy policy and ask about internal access controls.
What happens to my data if the vendor is acquired or goes bankrupt?
Data handling during corporate transactions varies. Most privacy policies include provisions allowing data transfer to successors. Review terms of service for acquisition clauses and consider data portability in vendor evaluation.
Are open-source transcription tools more secure?
Self-hosted open-source tools (like running Whisper locally) eliminate third-party data exposure but require security expertise to configure properly. Misconfigured self-hosted systems can be less secure than managed services. Evaluate your team's capability honestly.
How do I audit what's been transcribed in my organization?
Most enterprise transcription services provide admin dashboards showing transcription activity. For services without central management, you may have limited visibility. Consider requiring approval workflows before deploying transcription organization-wide.
Related Reading:
- Healthcare AI Transcription: HIPAA Compliance Guide
- Meeting Transcription Security Best Practices
- Data Retention Policies Explained
Need transcription with minimal data retention? BrassTranscripts deletes audio within 24 hours and transcripts within 48 hours. No account required, no subscription commitment.