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byThe Meridiem Team

Published: Updated: 
6 min read

OpenAI's Contractor Data Trap: AI Agents Hit Governance Inflection Point

OpenAI delegates PII sanitization to individual contractors preparing AI agents for enterprise deployment, exposing trade secret liability before regulatory oversight hardens. Decision window open now for enterprises and legal teams.

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The Meridiem TeamAt The Meridiem, we cover just about everything in the world of tech. Some of our favorite topics to follow include the ever-evolving streaming industry, the latest in artificial intelligence, and changes to the way our government interacts with Big Tech.

  • OpenAI asks contractors to upload real work assignments, instruct them to remove PII/trade secrets themselves, per Wired reporting

  • IP lawyer Evan Brown warns contractors and OpenAI face 'great risk'—contractors may violate NDAs with previous employers; OpenAI trusts individuals to identify what's confidential

  • For enterprises: this reveals the data governance gap that will block AI agent deployment in regulated/IP-sensitive industries unless your legal team controls sanitization

  • Watch for: regulatory response from FTC/state AGs on contractor-handled training data; first enterprise deployment lawsuits; how Anthropic and Google handle similar evaluation processes

OpenAI has crossed an inflection point that most enterprise AI rollouts are still planning for: the moment where evaluation data for production systems requires human judgment calls about confidentiality. The company is asking contractors to upload real work assignments from current and previous jobs, then strip out proprietary and personally identifiable information themselves. This methodology—delegating trade secret identification to individual contractors rather than automated systems or legal teams—exposes OpenAI to misappropriation claims while signaling exactly where AI agent deployment governance breaks down. The inflection matters because it arrives just as enterprises are deciding whether to pilot these systems.

OpenAI is running a very specific experiment right now, and it just exposed the weak link in how AI companies prepare agents for office work. The company is asking third-party contractors to upload real assignments from their current or previous jobs—Word docs, PDFs, Excel files, actual client deliverables—so it can establish a human baseline to compare against its AI models. The stated goal: measure progress toward AGI by comparing how well AI performs on real economic work versus experienced professionals. But here's the inflection point: OpenAI is telling contractors to sanitize the data themselves, removing proprietary information, trade secrets, and personal details before upload. Individual contractors are making the judgment calls about what constitutes confidential information. That's not a training data strategy. That's a liability construction project.

The methodology is crystal clear from internal documents Wired reviewed. OpenAI instructs contractors to "Remove or anonymize any: personal information, proprietary or confidential data, material nonpublic information (e.g., internal strategy, unreleased product details)." One file mentions a ChatGPT tool called "Superstar Scrubbing" that supposedly helps contractors figure out what to delete. This is where the governance architecture breaks. When you're collecting work assignments at scale—with hundreds or thousands of contractors uploading documents from finance firms, law offices, luxury concierge services, whatever—you've created a system where the integrity of confidentiality removal depends on individual judgment calls made by people with no legal training, no access to contractors' original employment agreements, no way to verify what was actually proprietary.

Evan Brown, an IP lawyer at Neal & McDevitt, puts it bluntly in the Wired article: "The AI lab is putting a lot of trust in its contractors to decide what is and isn't confidential. If they do let something slip through, are the AI labs really taking the time to determine what is and isn't a trade secret? It seems to me that the AI lab is putting itself at great risk." That's not hypothetical risk. It's trade secret misappropriation exposure. Contractors who upload scrubbed documents from previous employers could be violating their original NDAs. OpenAI, receiving that data, could face claims of knowing or reckless misappropriation. And if a competitor's trade secret ends up in OpenAI's training data—even accidentally—the legal implications cascade.

Why now? Because AI agents have moved from theoretical to deployment-phase. In September, OpenAI launched its formal evaluation process to measure AI performance against human professionals across industries. That's not a research project anymore. That's the production readiness phase. Anthropic and Google are running parallel contractor networks for the same purpose. The data sourcing problem—how do you get enough real-world examples to train agents that actually work in an accountant's workflow or a patent attorney's review process—has become the critical bottleneck. And OpenAI solved it the fastest way: hire contractors, ask for real work samples, trust them to redact. Scale over governance.

The market is watching this precisely because enterprise adoption timelines depend on it. An enterprise decision-maker considering AI agents for their 500-person accounting department needs to know: if OpenAI's training data contains accidentally-leaked trade secrets from my industry competitors, can I use this model without regulatory exposure? The answer right now is unclear because the evaluation methodology itself is legally ambiguous. That ambiguity is the inflection point.

There's a precedent here that matters. When companies like Microsoft moved Copilot into enterprise deployment, they ran parallel tracks: internal testing with clean data, then external evaluation with real-world examples under legal supervision. Google and Anthropic appear to be following a similar model with their contractor networks, though neither has been as publicly exposed on the methodology. OpenAI's approach—outsourcing confidentiality judgment to contractors—is faster. It's also the point where the architecture cracks.

The numbers underscore why this matters for timing. Handshake AI (the contracting firm managing recruitment for this project) was valued at $3.5 billion in 2022. Surge AI valued itself at $25 billion in recent fundraising talks. The training data sub-industry is extracting billions in value from this exact workflow: hire skilled contractors, collect high-quality task examples, scale to thousands of workers. But the governance infrastructure—the legal scaffolding that ensures PII and trade secrets stay removed—hasn't scaled alongside the data volume. And now it's hitting the moment when that gap matters most: when the data is going into models about to go live in enterprises.

The regulatory window opens now. The FTC has already signaled focus on AI training data practices. State attorneys general are moving on data privacy enforcement. If OpenAI's contractor data contains leaked NDAs or trade secrets, the liability cascades fast: contractor claims for NDA violations, enterprise customers suing for regulatory exposure, competitors claiming trade secret theft. And the inflection point is that OpenAI can't control the redaction process once contractors upload—that's the point of using contractors. But they're also liable for what comes through.

For the enterprise buyer considering AI agents right now, this is the governance question that blocks deployment: Can I legally use a model trained on contractor-sourced data when I can't verify how rigorously PII and trade secrets were removed? For builders integrating these agents into workflows, it's a security architecture question: Do I need to sanitize my training data a second time inside the agent itself? For the contractor uploading work samples, it's an immediate legal risk: Am I violating my previous employer's NDA by uploading this, even scrubbed?

This is the moment where AI agent deployment infrastructure meets regulatory reality. OpenAI's contractor-driven data sanitization exposes the governance gap that will determine whether AI agents can actually deploy in enterprises without legal friction. For decision-makers, the window to establish AI governance policies opens now—you need clarity on training data provenance before agents go into production. For builders, this signals the need for second-layer data verification inside agent architectures. For investors in AI infrastructure and training data platforms, this inflection reveals which models will face enterprise adoption friction and which will need to rebuild their evaluation methodology under legal supervision. Watch for: regulatory response from the FTC on contractor-handled training data, the first enterprise deployment lawsuit over leaked trade secrets in AI training data, and how Anthropic and Google respond by either hardening their contractor oversight or moving to alternative evaluation methods. The timeline compresses because agents are moving from evaluation to deployment in weeks, not months.

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