Understanding AI in Healthcare

Practical resources to navigate artificial intelligence (AI) in healthcare.

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This is your place for insights, tools and guidance to better understand and use artificial intelligence in your clinical practice.

You can learn about your responsibilities and obligations when using AI tools, as well as the specifically medico-legal considerations and obligations of new technology.

Artificial intelligence in healthcare is always evolving. This information is for general purposes only and was last reviewed on (DD/MM/YYYY).

If you have questions about artificial intelligence in healthcare, you can call our medico-legal advice line on 1800 011 255 or complete our Contact Us Form. We're here to support you.

AI in clinical practice

Regulations, responsibilities and obligations for doctors selecting and using AI-enabled tools.

Global Trends

External resources detailing how artificial intelligence is transforming healthcare systems around the world.

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Responsibilities and obligations

When using AI tools, doctors are still accountable for the care they provide. Find out about your responsibilities and obligations.

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Regulatory advice and industry guidance

Ensure your use of AI aligns with current standards, regulations, and best practice
  • Key resources on your legal and professional obligations
  • Links to trusted external sources for further guidance on AI in healthcare
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Regulators

Ahpra

Office of the Australian Information Commissioner

Therapeutic Goods Administration

Regulation of medical devices

  • AI tools that are considered medical devices are regulated by the Therapeutic Goods Association (TGA)
  • AI scribe tools that only generate clinical notes, summaries, or letters based on the conversation between a patient and doctor are not considered medical devices and are not currently regulated

Therapeutic Goods Administration

Medical Colleges/Associations

ACCRM

AMA

Australian Dental Association

Australian Medical Association

RACGP

RACP

RANZCR

Department of health – state-based guidance

Government of Western Australian Department of Health

NSW Health

Safer Care Victoria

Articles and case studies that focus on the medico-legal landscape of using AI

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Risks in medical practice

AI is transforming healthcare, but there are risks, including:
  • Accuracy of notes
  • Consent
  • Security of content
  • Privacy/storage
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Common risks of AI

Accountability, liability and medico-legal risks

AI involvement may create uncertainty about responsibility when an adverse event occurs. Clear individual, organisational and vendor responsibilities must therefore be maintained for AI-assisted decisions and outcomes.


Automation bias, over-reliance and human oversight risks

Excessive reliance on AI may undermine human autonomy, clinical judgement and diagnostic vigilance. Risks include accepting AI-generated recommendations without adequate critical review, excessive trust in algorithmic outputs and the gradual de-skilling of clinicians.


Bias, discrimination, fairness and equity risks

AI systems may inherit or amplify biases in their training data, potentially producing unfair or unequal outcomes. These risks may affect groups based on race, gender, age, geographic location or other characteristics, particularly where populations are underrepresented in the data.


Clinical safety and quality risks

AI systems may produce inaccurate, incomplete, misleading or unsafe outputs that could adversely affect patient care. These may include incorrect or missed diagnoses, inappropriate treatment recommendations, hallucinated clinical information, unreliable predictions and performance degradation over time, particularly where systems are inadequately validated or monitored.


Governance, oversight and implementation risks

Poor implementation, inadequate evaluation and insufficient ongoing monitoring may create risks. These include deploying unvalidated tools, unclear approval processes, inadequate governance structures, failure to monitor performance and insufficient incident reporting.


Organisational and workforce risks

Organisations should recognise that introducing AI may affect workforce roles, responsibilities, skills, workload, workplace culture and administrative functions. Risks include inadequate training, unclear responsibilities, resistance to change, poor change management, workflow disruption, inequitable access to AI tools, displacement of some administrative roles and reduced capability to work safely when AI systems are unavailable.


Privacy, confidentiality, cybersecurity, and information security risks

AI systems may create risks relating to patient privacy, confidentiality, consent and information security. These include entering identifiable patient information into external platforms, unauthorised data sharing, inadequate consent processes, data breaches and secondary use of patient data.


Regulatory and compliance risks

Rapidly evolving AI technologies may create uncertainty regarding legal and regulatory obligations. Risks include using unregulated tools, failing to meet consent, privacy or record-keeping obligations, and not complying with applicable software-as-a-medical-device requirements.


Transparency and explainability risks

Some AI systems operate as “black boxes”, making it difficult to understand, audit or explain how outputs are generated. This may reduce clinician confidence and create challenges when reviewing decisions or explaining them to patients.


Common risks with AI scribe tools

Accuracy of the notes:

The doctor conducting the consultation is responsible for the accuracy of the medical record of that consultation. Any patient notes generated are deemed to be signed off/approved by you. Before entering the AI-generated record into the clinical record, the doctor must check and if necessary, edit the document to ensure accuracy, and that relevant content has been included (or not been excluded).


Consent:

Gaining consent from the patient before recording is critical and should be documented in the patient’s medical record. Providing information and signs in the practice about the AI technology, while helpful for expectation setting, does not substitute for consent. Have a system in place to seek and record the consent for the use of this technology (it may be inbuilt).


Security of content:

Determine whether the content is encrypted/redacted and if it is stored (even temporarily) on an overseas server (as this may breach Australian privacy legislation if specific consent is not obtained).


Privacy/Storage:

You will need to ensure any provider meets the obligations under the Privacy Act before utilising their services. The contract between the AI program provider and the user/doctor should cover information security and Australian privacy law. Is the AI program regulated by the TGA. and if so, approved by them as part of their regulation of software based medical devices?

MDA education offerings for AI

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Implementing new AI tools into your workflow

Use MDA's practical resources to implement your own AI governance policy.

Doctors are responsible for understanding the capabilities and limitations of any AI tools they use, for example, how it has been validated, regulated, and integrated into the clinic workflow. This includes:

  • Meeting obligations around informed consent, privacy and data security
  • Complying with relevant clinical standards, organisational policies, and regulations

If you are using or (considering using) AI tools in your practice, we recommend implementing an AI Governance Policy. A policy provides a framework that supports the legal, ethical, safe, secure and effective use of artificial intelligence.

Things you should consider when using AI in your record management:

  • Your (and your staff's) comfort level with using the technology
  • Recognising that is a tool to assist, not to replace your workflows
  • Cost (both spent and saved)
  • Security and privacy
  • Reliability

MDA Library resources with guidance on AI governance

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Artificial intelligence basics

Resources that explain key concepts of AI, real-world applications of AI in healthcare, and common AI definitions.

Common terms

Algorithm

A sequence that instructs a computer to process an input (e.g. data) to produce an output (e.g. a prediction).

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Artificial Intelligence (AI)

Computer-based systems capable of performing tasks that ordinarily require human intelligence, such as learning, reasoning, recognising patterns, generating content and supporting decision-making.


Automation

The process of instructing a digital system or machine to perform a task based on human directions.


Automation bias

Propensity for humans to over-rely on an automated system and favour suggestions from automated decision-making systems.


Bias

The tendency of a system to favour different groups of people, based on the data that the system was trained on (which may reflect historical prejudices), design parameters or prioritised features.


Big data

Datasets that are too large to be analysed via traditional means, where AI is used to recognise patterns.


Black box

A system or device with hidden internal workings where only the inputs and outputs are known.


Clinical Decision Support System (CDSS)

An electronic system that provides targeted clinical knowledge and processed patient-related information to directly influence care processes by clinicians, especially in situations requiring complex decision-making.


Chatbot

A program that simulates simple and predictable human conversations (either written or verbal).


Closed source

Private or proprietary software with underlying code that is not available to the public.


Data mining

Analysing large sets of data for trends through statistical methods and machine learning.


Ethical AI

Developing artificial intelligence to be transparent and align with societal values and prioritise human needs.


Generative AI

A type of AI that is trained on large datasets to generate new content, such as text, images, audio, video, software code, or other outputs, in response to user prompts or other inputs.


Hallucination

Information presented as factual by AI that is incorrect, misleading and often completely fabricated.


Human-centred AI

The involvement of human judgement and intervention in the deployment and use of AI systems to ensure ethical and responsible outcomes. (also referred to as Human-in-the-loop).


Human Oversight

The involvement of human judgement and intervention in the deployment and use of AI systems to ensure ethical and responsible outcomes.


Large Language Models (LLMs)

A type of AI model trained on large amounts of language data to understand and generate text or other language-based outputs.


Machine Learning

A subtype of AI focused on the use and development of systems that learn and adapt using algorithms and statistical models to analyse and interpret patterns of data without following explicit instructions.


Open source

Software with underlying code that is publicly available to view and use.


Predictive analytics/ Predictive AI

Using data to forecast future trends through statistical methods and machine learning.


Responsible AI

Using frameworks, to safely and ethically deploy artificial intelligence systems.


Scribes

AI-powered tools with the ability to convert clinical conversations into structured clinical documentation to then be incorporated into patients’ electronic health records.


Shadow AI

The unauthorised or unvetted use of artificial intelligence tools, models, or embedded features by employees within an organisation without the knowledge or oversight of IT and security teams.


Synthetic Data

Information created by algorithms or simulations (rather than collected in the real world).


Training data

Text, images, audio or other information used to teach tasks to machine learning models.

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IMPORTANT:

Information (including factual information) published or communicated by the MDA Group is for general information purposes only and does not constitute legal, medical or other professional advice.

The MDA Group does not represent, warrant and/or guarantee that the information contained herein is free from errors, virus, interception or interference. You should seek legal or other professional advice before acting or relying on any information, opinions or recommendations provided.

MDA Group is not responsible for any loss suffered in connection with the use of this information. Information is only current at the date initially published.

Cases referenced or discussed by MDA Group may be based on real cases. Certain information may have been de-identified to preserve privacy and confidentiality.