How should firms think about AI security and privacy risk (e.g., the IRC 7216 concern) when using tools like Claude with client financial data?

The discussion acknowledged that reactions to AI privacy split into two camps: those who feel it's already too late to worry (client data is already flowing through Adobe, email, QuickBooks/Intuit's anonymized-data training, etc.) and those who are skeptical and cautious. One person specifically flagged IRC Section 7216 as a real concern — noting that sharing tax return information too loosely with AI can carry serious consequences ('you could go to jail'), though the group did not resolve the specific legal boundaries of that rule in this exchange.