A new California federal lawsuit against AI notetaking provider Granola highlights a growing privacy risk for companies using meeting transcription tools: consent cannot be an afterthought. According to the complaint, Granola’s software allegedly recorded a virtual meeting participant without giving notice that an AI notetaker was present or seeking permission to record. The plaintiff claims this differs from other AI transcription tools that visibly join meetings, announce their presence, or give participants the ability to remove the notetaker. The suit also alleges that Granola used meeting contents by default for commercial purposes, including training AI systems, unless the Granola user turned that setting off.
The case combines several legal theories that have become increasingly common in privacy litigation involving recording and tracking technologies, including claims under the federal Electronic Communications Privacy Act, the California Invasion of Privacy Act, California’s confidential communications statute, common law invasion of privacy, and California’s computer access statute. While the allegations remain unproven, they reflect a key plaintiff-side theory that when a company designs technology to capture communications without clear notice to everyone involved, especially in a two-party consent state like California, privacy and wiretapping claims may follow.
For businesses deploying AI notetakers, meeting bots, transcription tools, or other AI-enabled collaboration products, the takeaway is straightforward: build consent and transparency into the workflow. Companies should review whether meeting participants receive clear notice before recording begins, whether consent is obtained from all required parties, whether participants can object or opt out, and whether meeting data is used for model training or other secondary purposes by default. As AI tools become more embedded in ordinary business communications, the privacy controls around them need to be just as visible as the productivity benefits.