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AI and Healthcare: Utilization and Risk Mitigation

Blog Post
April 14, 2026

If you are a healthcare provider, you may want to consider implementing AI into your practice. Why? Data shows that the use of AI in healthcare is growing! In 2026, the American Medical Association (“AMA”) conducted a study of over 1,000 physicians, asking questions about their use of and feelings towards AI.[1] The study indicated that in 2026, over 80% of physicians used AI in their practice, and over 75% stated that AI improved their ability to care for their patients.[2]

Some ways that providers can utilize AI in their healthcare practice are: (1) creating personalized care plans; (2) completing prior authorization forms; or (3) for translation services.[3] When implementing AI into a practice, it is important to remember that AI should be used as a tool, not as a replacement for the provider’s experience and expertise.

AI scribes, which can be used to create documentation, are one type of tool that has gained recent popularity among providers. Using AI scribes as a tool may result in less provider burn-out and more efficient documentation, allowing the provider to allocate more time treating patients. However, there are also potential drawbacks to utilizing AI scribes, such as the AI generating biased or false information.  

It is important to note that providers are ultimately responsible for the information submitted in any form or document. Providers will want to ensure that all information generated by AI is checked for completeness and accuracy. In addition, providers may want to notify patients when they are using AI in order to maintain a positive patient-provider relationship. Finally, any AI software or tool used in conjunction with protected health information (“PHI”) must be HIPAA compliant to protect patient privacy.

Providers are not the only ones using AI in the healthcare space. Payors are also using AI to audit medical records, documentation, coding, and billing for coverage determinations. Providers should expect increased audits and should take steps to confirm compliance with billing and coding requirements.

Ohio is one of many states to start regulating the use of AI. Currently, Ohio Senate Bill 164 seeks to prohibit health insurers from making coverage decisions solely from the use of AI.[4] In addition, Ohio House Bill 525 seeks to ensure that licensed therapists review all AI generated therapeutic recommendations and treatment plans, and to prohibit licensed therapists from using AI to detect emotions or mental states of patients.[5] These two emerging Ohio Bills reinforce that while AI can be helpful within the healthcare space, AI does not and cannot replace the provider.

We recommend engaging an attorney when implementing AI into your practice to ensure compliance with healthcare regulations, such as HIPAA and the False Claims Act.

If you have any questions about how AI can impact your practice, please contact BMD Health Law Member Jeana Singleton at jmsingleton@bmdllc.com.

[1] Augmented Intelligence in Medicine, American Medical Association, last accessed April 9, 2026, available at https://www.ama-assn.org/practice-management/digital-health/augmented-intelligence-medicine.

[2] Id.

[3] Governance for Augmented Intelligence, American Medical Association, last accessed April 9, 2026, available at https://edhub.ama-assn.org/steps-forward/module/2833560.

[4] Ohio Senate Bill 164, 136th General Assembly (2025-2026), available at https://www.legislature.ohio.gov/legislation/136/sb164.

[5] Ohio House Bill 525, 136th General Assembly (2025-2026), available at https://www.legislature.ohio.gov/legislation/136/hb525.

HealthcareHealth LawAIArtificial IntelligenceJeana Singleton
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