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AI in senior living: Managing employment, privacy, and litigation risk

This episode of Risk Senior Living and Long Term Care explores how artificial intelligence is rapidly entering the workplace and why senior living and long-term care organizations need to approach adoption with caution.

This episode of Risk Senior Living and Long Term Care explores how artificial intelligence is rapidly entering the workplace and why senior living and long-term care organizations need to approach adoption with caution. Host Tara Clayton speaks with Laurel Cornell, Regional Managing Partner at Fisher Phillips, about the fast-changing legal landscape surrounding AI, from shifting federal priorities to a growing patchwork of state and local laws governing privacy, biometrics, consent, and employment practices. The discussion makes clear that while AI can drive efficiency, it can also create exposure if organizations implement tools before fully understanding what data is being collected, how it is being used, and which laws may apply.

The episode also examines where AI-related risk is already showing up in practice. Tara and Laurel discuss litigation tied to AI notetakers, call monitoring tools, resume screening, and the discoverability of ChatGPT use in employment decisions and legal matters. Throughout the conversation, Laurel emphasizes a practical risk management approach: understand the regulatory landscape, vet vendors carefully, define acceptable use through policies and procedures, and involve legal counsel early rather than after a tool is already in place. For providers exploring AI in any employment-related context, the message is simple: move forward, but do so deliberately.

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Key takeaways

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Understand the tool before you deploy it

AI risk often begins in the background. Employers need to know exactly what an AI tool is collecting, whether it analyzes voice or biometric data, where that information is stored, and how the vendor may use or share it.

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Notice, consent, and retention matter more than many organizations realize

From AI notetakers in meetings to monitored calls with prospective residents or families, the use of AI can trigger privacy, biometric, and confidentiality obligations. Clear notice, informed consent, and disciplined data retention practices are essential safeguards.

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Policies first, legal review early

The strongest AI risk management starts before implementation. Organizations should establish clear policies and procedures for when AI tools can be used, train employees on appropriate use, and consult counsel on the front end to reduce legal, regulatory, and litigation exposure.

About our speakers

Portrait of Tara Clayton with white background

Tara Clayton

Managing Director, Marsh Senior Living & LTC Industry Practice

  • United States

Tara Clayton is the Practice Leader – Industry & Risk for Marsh’s Senior Living and LTC Industry Practice. In this role, she advises clients with strategic and tactical advice concerning effective general and professional claim resolution, risk management, and strategies to obtain maximum insurance coverage across lines of coverage. Tara’s expertise with complex litigation and creative risk management initiatives helps reduce costs, enhance value, and increase client control of their risk management programs.

Laurel Cornell

Laurel Cornell

Regional Managing Partner, Fisher & Phillips

  • United States

Laurel Cornell is the managing partner of Fisher Phillips's Louisville office and co-chair of the firm's Healthcare Industry Group. Laurel has extensive experience representing employers in the senior living industry, including acting as interim in-house employment counsel for a large national senior living operator on multiple occasions. Her practice involves providing daily advice and counseling on a wide array of multi-state employment-related compliance issues and representing employers in litigation and administrative actions across the country involving claims of harassment, discrimination, and retaliation under state and federal laws.  Laurel has been recognized in The Best Lawyers in America, Chambers USA, and Kentucky Super Lawyers. In 2023, she was recommended as a leading practitioner for Workplace and Employment Counseling by The Legal 500 United States.

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