Why AI Non-Competes Are Often Too Broad: the phrase AI can swallow an entire modern technology career unless the restriction is carefully limited. Upload notices, contracts, reports or court papers to Caira and turn them into a document checklist.
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Current-law note: reviewed against current official-source posture for the 2026 refresh.
The Core Problem
A non-compete that once covered a narrow product line can become unreasonable when it is written around 'AI' or 'machine learning' generally. AI now appears in search, cloud infrastructure, chips, cybersecurity, productivity software, healthcare tools, finance, robotics and consumer apps. A clause that blocks work on anything AI-related may be closer to an industry ban than a protection for confidential information.
Current Legal Lens
Because the FTC's nationwide rule is not the practical operating answer in 2026, the overbreadth analysis returns to state law, contract scope and protectable interest. The question is whether the clause protects a legitimate business interest in a way the chosen state permits, not whether the word AI is commercially important.
A Better Drafting Test
What exact confidential information is protected?
What roles or customers create the conflict?
How long does the risk realistically last?
Is geography meaningful for a remote AI team?
Could confidentiality, nonsolicit, invention-assignment or trade-secret clauses solve the problem with less restraint?
For Employees
Do not assume the clause is invalid just because it is broad. Collect the agreement, all amendments, the state-law facts and the new role description. Then identify the practical conflict: model architecture, customer list, pricing strategy, unreleased roadmap, training data, vendor terms or research direction. If none of those fit, the employer may be protecting competition rather than confidential information.
For Employers
Overbroad AI restrictions can damage recruiting, invite disputes and distract from stronger protections. A narrower package usually works better: confidentiality for actual secrets, invention assignment for developed work, non-solicitation where allowed, clean-room onboarding for lateral hires and clear exit procedures for sensitive systems.
Caira Review Prompts
List every post-employment restriction in this agreement.
Which restrictions are tied to actual confidential information?
Does the AI language cover the new role too broadly?
What facts matter under the chosen state law?
Which narrower protection could replace a blanket non-compete?
This guide is general information, not legal, financial, medical or tax advice.
