Confidentiality breach. You are supposed to have processes in place to guarantee that your customers data is safe from employees that are not explicitly disclosed to the customer from having access. Saying 'a program makes annotations' versus 'me and my buddy are sitting in undisclosed on your confidential meeting' are two entirely different things from a legal perspective.

"I'll get you to the moon safely" = NASA "I'll get you to the moon" = me with a wood chipper and a very powerful potato gun The startup charged for "AI note- taking", not simply "note taking".

IMO the real fraud was against the investors.

If I invest in your AI startup and find out it's really people doing the work, I'm going to be pissed.