A federal judge largely sided with Google in a class-action lawsuit alleging its AI-powered customer service tools violated California privacy laws by recording calls without consent. In an October 22, 2026, ruling, the court dismissed claims from several plaintiffs, finding they had not shown that Google intended to eavesdrop without consent.
Filed in San Francisco, the lawsuit focused on Google’s Contact Center AI, which companies including Home Depot and Discover use to handle customer service calls. The judge found that some plaintiffs had consented to recording by agreeing to company privacy policies that disclosed calls could be shared with service providers. Claims from other plaintiffs were sent to arbitration.
The court allowed some plaintiffs to amend and refile their complaints. The ruling is a significant victory for Google, reducing immediate legal threats to its growing enterprise AI business. The case highlights ongoing legal battles over privacy and consent as AI becomes more integrated into customer interactions.