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March 12.2025
2 Minutes Read

Why Healthcare Providers Should Share Risk in AI Contracts

Blue dollar symbol highlighting shared risk in healthcare AI contracts

AI and Healthcare: A Shared Journey into Risk Management

The integration of Artificial Intelligence (AI) in healthcare is more than just a technological shift; it's a transformation that demands new models of collaboration between hospitals and tech providers. Zafar Chaudry, Chief Digital Officer and Chief AI and Information Officer at Seattle Children’s, emphasizes that the conversations surrounding healthcare AI are evolving, particularly concerning how contracts should be structured. Hospitals, he argues, ought to enter into agreements that allow for shared risk.

Why Risk Sharing Matters in AI Contracts

Contracts that are solely focused on compensating for time and resources often result in growing expenses without guaranteeing outcomes. Chaudry points out that healthcare could benefit significantly from a milestone-based payment system where suppliers are rewarded based on product performance. This approach not only aligns the interests of both parties but also mitigates the financial burden on healthcare providers.

Navigating the Governance of AI in Healthcare

The landscape of healthcare AI governance is rapidly changing. Over the past year, heightened concern has arisen regarding ethical implications and the transparency of AI applications used in patient care. Various organizations, such as the Coalition for Health AI Coverage (CHAI) and VALID AI, are working on developing standardized governance frameworks, a crucial step in ensuring the technology is applied responsibly and effectively.

The Case for Collaborative Development

Developing AI solutions is inherently complex, and Chaudry's analogy comparing it to selecting and using mobile applications underscores this point. Just as users must adapt apps to fit their needs, hospitals must collaborate closely with AI developers to ensure tailored solutions that genuinely address specific operational challenges. Without this partnership, projects risk falling short of expectations.

Future Trends: Accountability in Value-Based Care

As the healthcare sector shifts toward a value-based care model, it becomes increasingly clear that accountability is integral to success. This model holds providers responsible for care outcomes and costs, aligning with the risk-sharing principles that Chaudry advocates for. Implementing collaborative arrangements not only enhances the quality of care but also fosters an environment where both care teams and patients can share in the rewards of resilience and innovation.

For healthcare IT professionals and digital health innovators, the time is ripe to foster these conversations about risk-sharing in contracts with AI developers. Such alliances could lead to breakthrough advancements in technology that not only meet the needs of today but also pave the way for a more efficient and effective healthcare system in the future.

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The Rising Risk of Data Privacy and Trusting AI in Healthcare

Update The Concerning Use of Personal Data in AI TrainingThe revelation that millions of pieces of personal information—such as images of passports, credit cards, and birth certificates—are included in one of the largest populations of open-source AI training datasets raises significant privacy concerns. The DataComp CommonPool set, as reported in a recent study, likely contains hundreds of millions of identifiable images because researchers only audited a minuscule 0.1% of the dataset.This finding shows that anything we put online can—and often has—been harvested. Users must be increasingly aware of how their digital footprints contribute to massive datasets used to train AI systems. Such data scraping practices not only violate individual privacy but can also lead to misuse of personal information in various contexts, thereby demanding a closer examination of ethical AI practices.AI Chatbots: The Dangers of Trusting Machine AdviceIn another pressing issue, a shift is evident in how AI companies communicate the limitations of their chatbots in providing medical advice. Traditionally, these systems included disclaimers emphasizing their inability to serve as substitutes for professional medical guidance. However, a decline in these warnings poses a risk, as users seeking help for serious health issues may inadvertently trust erroneous or unsafe medical advice.The absence of necessary disclaimers foregrounds a rising dependency on AI for both simple and complex health inquiries. As chatbots become more interactive—often presenting follow-up questions—the danger is that users may consider their suggestions as credible as those of a trained medical professional. This shift in user trust warrants a re-evaluation of how AI technologies are designed and regulated, especially in sensitive sectors like healthcare.What Users Can Do to Protect Their DataGiven these developments, it's essential for individuals to safeguard their digital identities. Users can take proactive steps, such as limiting personal information shared online and utilizing privacy tools, to reduce the exposure of their data. By being informed about the AI's capabilities and its limitations when it comes to health issues, users can make sounder decisions and maintain a cautious approach towards engaging with AI technologies.Final Thoughts on AI’s Role in Healthcare and PrivacyAs we embrace advancements in AI, it becomes critical to understand both its potential benefits and the inherent risks. The balance between innovation and ethical responsibility requires ongoing dialogue among tech developers, healthcare professionals, and users. Only through transparent practices and informed usage can we harness AI's power while mitigating risks to personal privacy and health safety.

The Alarming Trend of AI Companies Dropping Medical Disclaimers: What It Means for Users

Update The Silence of AI in Health Recommendations In a concerning shift, artificial intelligence companies, including OpenAI and Google, have largely stopped issuing warnings about the limitations of their chatbots when it comes to medical advice. This trend, highlighted by recent research from Sonali Sharma at Stanford University, raises critical questions about safety in digital health consultations. Worrisome Trends in AI Disclaimers Sharma's study revealed that less than 1% of AI-generated responses concerning health-related inquiries included disclaimers, a stark decline from over 26% in 2022. The absence of these warning messages could mislead users into trusting potentially hazardous medical advice, particularly when discussing serious health issues like medication combinations or diagnostic interpretations. Understanding AI's Role in Healthcare For many users, disclaimers served as a necessary reminder that AI tools are not replacements for medical professionals. As comments on platforms like Reddit show, users have often devised ways to bypass these warnings to gain direct advice from AI systems, indicating a misunderstanding about the nature of AI capabilities. A Call for Responsibility in AI Development Dermatologist and coauthor Roxana Daneshjou points out the significant risk posed by this trend. As AI technology evolves and claims of its superiority over human physicians enter popular discourse, users may feel increasingly inclined to trust AI outputs. Without disclaimers, Sharma argues, the potential for real-world harm escalates as patients might rely on bots for medical guidance rather than consulting qualified health professionals. The Way Forward: Reinforcing AI Guidelines The need for clear disclaimers as guiding lights in the murky waters of AI-assisted healthcare is becoming evident. Developers must prioritize transparent practices that uphold patient safety while ensuring that users are educated about the limitations of AI tools. Addressing this gap is essential to prevent misinformation and protect public health.

The Alarming Reality of Personal Data in AI Training Datasets

Update The Troubling Discovery of Personally Identifiable Information in AI Datasets Recent research has uncovered a troubling revelation regarding data privacy within the realm of artificial intelligence. A significant dataset known as DataComp CommonPool, one of the largest publicly available sources for training image-generation models, reportedly contains millions of instances of personally identifiable information (PII). This includes images of sensitive documents such as passports, credit cards, and birth certificates. Insights from the Research: The Scope of the Breach The research team, led by William Agnew, a postdoctoral fellow at Carnegie Mellon University, audited just a tiny fraction—0.1%—of the over 12.8 billion samples in the CommonPool dataset. Alarmingly, they estimated that the actual number of images containing PII could be in the hundreds of millions. This finding underscores an essential and daunting reality: "anything you put online can [be] and probably has been scraped," according to Agnew. More Than Just Numbers: The Real-World Impact Among the findings were thousands of validated identity documents, along with over 800 confirmed job application materials such as résumés and cover letters. These documents often contained sensitive personal information, including disability status and social security numbers. The deep connections between online presence and personal information raise significant concerns for privacy and data security in the digital age. The Future of Data Privacy: What Lies Ahead? This incident highlights a pressing need for robust regulations around data collection and usage, particularly for AI training datasets. As AI technologies advance rapidly, we must consider how to protect individuals' rights and privacy in an increasingly interconnected world. Society must come together to address these challenges through policy reform and stronger data governance. With these developments, it is crucial for individuals and businesses alike to understand the risks associated with sharing personal data and to advocate for comprehensive privacy protections to safeguard against the misuse of this information.

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