Dissemination of AI in healthcare: what patients need to know

Artificial intelligence is rapidly reshaping healthcare. It now supports diagnostic imaging, clinical decision tools, patient messaging, and administrative workflows. According to the World Economic Forum, 4.5 billion people still lack access to essential care, and the global shortage of healthcare workers could reach 11 million by 2030. AI could help close that gap.

However, as AI becomes increasingly integrated into care, regulators are focusing on a simple question. Should patients be informed when AI plays a role in their care?

In the United States, no federal law requires broad disclosure of AI in healthcare. Instead, a growing patchwork of state laws is filling that void. Some states require clear disclosure. Others indirectly demand transparency through limits on how AI can be used.

Sign up to receive my FREE CyberGuy report

Get my best tech tips, urgent security alerts, and exclusive offers delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Guide to Surviving Scams, free when you join me CYBERGUY.COM information sheet.

AI RULES AT THE STATE LEVEL SURVIVE, FOR NOW, WHILE THE SENATE SINKS THE MORATORIUM DESPITE PRESSURE FROM THE WHITE HOUSE

Why AI disclosure matters for trust

Transparency is not a technical detail, it is a matter of trust. Research across industries shows that people expect to be informed when AI affects the decisions they care about. In the healthcare sector, that expectation is even stronger. An analysis published by CX Today found that when the use of AI is hidden, trust is quickly eroded, even when the results are accurate.

Healthcare depends on trust. Patients follow treatment plans, share confidential information, and stay engaged when they believe care decisions are ethical and responsible.

How AI Disclosure Connects to HIPAA and Informed Consent

While HIPAA does not directly regulate artificial intelligence, its principles still apply. Covered entities must clearly explain how protected health information is used and safeguarded.

When AI systems analyze or generate clinical information using patient data, non-disclosure can undermine that goal. Patients may not fully understand how their information influences care decisions.

Disclosure also supports informed consent. Patients have the right to understand material factors that influence diagnosis, treatment, or care communications. Just as doctors reveal new procedures or medical devices, the meaningful use of AI must be explained, so patients can ask questions and remain engaged in their care.

AI TOOLS COULD WEAKEN DOCTORS’ SKILLS TO DETECT COLON CANCER, STUDY SUGGESTS

What does AI disclosure mean in healthcare?

AI disclosure means informing patients or members when artificial intelligence systems are used in healthcare decisions. This may include clinical messages, diagnostic support tools, utilization review, claims processing, or coverage determinations. The goal is transparency, accountability and patient trust.

Health care activities most likely to trigger disclosure

According to Morgan Lewis analysis, disclosure requirements apply most often when AI is used to:

• Patient-facing clinical communications
• Utilization review and utilization management.
• Claims Processing and Coverage Decisions
• Mental health or therapeutic interactions.

These areas are considered high impact because they directly affect access to care and understanding of health information.

Risks of not disclosing the use of AI

Healthcare organizations that do not disclose their use of AI face real consequences. These include increased risk of litigation, reputational damage, and erosion of patient trust. Ethical concerns around autonomy and transparency can also trigger regulatory scrutiny.

MORE AMERICANS ARE TURNING TO AI FOR HEALTH ADVICE

How states are shaping AI disclosure rules

States are taking different paths to regulate AI in health care, but most are starting with a common goal: greater transparency when the technology influences care.

California focuses on communication and coverage decisions

California has taken one of the most comprehensive approaches.

AB 3030 requires clinics and medical offices that use generative AI for patient communications to include a clear disclaimer. Patients should also be instructed how to contact a human health professional.

SB 1120 applies to health plans and disability insurers. Requires safeguards when using AI for utilization review. It also requires disclosure and confirms that licensed professionals make decisions about medical needs.

Colorado regulates high-risk AI systems

Colorado’s SB24 205 targets artificial intelligence systems considered high risk. These are tools that materially influence decisions such as the approval or denial of healthcare services.

Entities must implement safeguards against algorithmic discrimination and disclose the use of AI. While broader than clinical care alone, the law directly affects patient access decisions.

Utah emphasizes mental health and regulated services

Utah has layered disclosure rules that intersect with health care.

HB 452 requires mental health chatbots to clearly disclose their use of AI. SB 149 and SB 226 expand disclosure requirements to regulated occupations, including healthcare professionals.

This approach ensures transparency in therapeutic interactions and clinical services.

Other States Expanding AI Transparency

Several other states are moving in the same direction. Massachusetts, Rhode Island, Tennessee, and New York are considering or enforcing rules requiring disclosure and human review when AI influences utilization review or claims outcomes. Even when clinical diagnosis is not covered, these laws drive accountability when AI impacts access to care.

What does this mean to you?

If you are a patient, expect more transparency. You may see disclosures in messages, coverage notices, or digital interactions. If you work in healthcare, AI governance is no longer optional. Disclosure practices must be aligned across clinical, administrative, and digital systems. Training staff and updating patient notifications will be as important as the technology itself. Trust will increasingly depend on how openly AI is introduced into care.

CLICK HERE TO DOWNLOAD THE News APP

Take my quiz: How safe is your online security?

Do you think your devices and data are really protected? Take this quick quiz to see where you stand digitally. From passwords to Wi-Fi settings, you’ll get a personalized breakdown of what you’re doing well and what you need to improve. Take my quiz here: Cyberguy.com.

Kurt’s Key Takeaways

AI can improve efficiency, expand access, and support physicians. However, its value depends on trust. Disclosure does not stop innovation. Strengthens confidence in both the technology and the professionals who use it. As states continue to act, transparency will likely become the norm rather than the exception in healthcare AI.

If AI helps guide your care, would knowing when and how it is used change the way you trust your healthcare provider? Let us know by writing to us at Cyberguy.com.

Sign up to receive my FREE CyberGuy report

Get my best tech tips, urgent security alerts, and exclusive offers delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Guide to Surviving Scams, free when you join me CYBERGUY.COM information sheet.

Copyright 2025 CyberGuy.com. All rights reserved.