The Ethics of AI in Healthcare: Opportunities and Risks

· Thomas Wood
The Ethics of AI in Healthcare: Opportunities and Risks

Guest post by Jay Dugad

Artificial intelligence has become one of the most talked-about forces shaping modern healthcare. Machines detecting disease, systems predicting patient deterioration, and algorithms recommending personalised treatments all once sounded like science fiction but now sit inside hospitals, research labs, and GP practices across the world.

With this rapid adoption comes an equally rapid rise in difficult questions. How far should AI go? Who gets to decide what is ethical? And how do we protect patients while still embracing the advantages these technologies promise?

AI systems are already influencing real diagnoses, triage decisions, drug discovery timelines, and national healthcare strategies. AI systems can be more dynamic and unpredictable than traditional medical devices. That uncertainty forces us to rethink long-standing ethical principles such as trust, accountability, and fairness.

This blog explores both sides of the conversation: the extraordinary opportunities AI brings to healthcare, and the equally significant risks that require thoughtful regulation, transparency, and oversight.


Why are we now seeing a rise in AI applications in healthcare?

Healthcare systems across the globe are facing mounting pressure: ageing populations, stretched workforces, long patient backlogs, and rising costs. When carefully implemented, AI offers tools, that can genuinely ease some of these burdens.

1. Earlier and more accurate diagnoses

AI systems trained on medical imaging now detect certain cancers, retinal issues, and cardiovascular abnormalities with accuracy rivalling — and in some cases surpassing — human experts[1]. A well-designed model doesn’t get tired, doesn’t overlook subtle anomalies, and can review thousands of scans faster than any clinician.

2. Personalised medicine at scale

Instead of one-size-fits-all treatment pathways, AI can analyse genetics, lifestyle data, medical history, environmental factors, and behavioural patterns to recommend care that is personal and often more effective[1].

3. Predictive analytics that save lives

Hospitals are increasingly using AI to forecast patient deterioration, emergency department surges, bed shortages, and high-risk complications such as sepsis. These predictions give clinicians valuable time — time that can make the difference between life and death.

4. Accelerating medical research

Drug discovery, which previously relied on years of lab work, now benefits from AI models that screen potential molecules, simulate binding interactions, and predict toxicity even before the first laboratory experiment begins[3].

5. Reducing administrative strain

In the NHS and similar public systems, clinicians routinely lose hours to note-taking, scheduling, and paperwork. Natural language processing (NLP) tools can automatically summarise consultations or generate discharge notes[2].

All these advantages make AI a tempting addition to hospitals and health organisations.

However, the same strengths that make AI powerful — speed, autonomy, and complexity — also raise difficult ethical concerns.

Ethics of AI in healthcare

Opportunities of AI in Healthcare

Ethical Challenges: The Risks We Cannot Ignore

While the potential is enormous, healthcare is not a sandbox where technology can be tested without consequences. Decisions made by AI systems can directly affect human lives, sometimes subtly, sometimes dramatically. Ethical concerns arise not only from the technology itself, but also from how institutions choose to deploy it.

1. Bias and fairness

Bias in AI is a documented problem in deployed systems.

Because AI learns from data, it inherits any imbalance or bias hidden within that data. Obermeyer et al.[4] documented how a widely used US hospital algorithm assigned lower risk scores to Black patients due to flawed assumptions in its training data.

Examples of AI bias in healthcare include:

  • Dermatology models performing worse on darker skin tones
  • Cardiovascular risk models underestimating danger in women
  • Inequitable triage scoring systems affecting minority populations[4]

These biases often go unnoticed until real patients are harmed, raising serious questions about responsibility, representation, and equity.

2. Transparency and explainability

Clinicians justify their decisions through evidence and reasoning. AI systems, however, often behave like a black box, generating outputs without clear explanations.[2]

Without explainability:

  • Doctors hesitate to trust AI recommendations
  • Patients may feel uncomfortable with invisible decision-making
  • Regulators cannot properly assess safety

Explainable AI (XAI) is now considered essential for healthcare systems — not a luxury.

3. Accountability when things go wrong

If an AI system misdiagnoses a patient, who is responsible?

  • The clinician using it?
  • The hospital deploying it?
  • The developers who built it?
  • Regulators who approved it?

Current legal frameworks were not designed for autonomous or adaptive systems. This accountability gap is one of the most complex ethical issues in AI healthcare governance[6].

4. Privacy and data security

Healthcare datasets are highly sensitive. When AI models process millions of records, the risk of breaches increases dramatically.

Key concerns include:

  • Patient consent for data used in AI training[5]
  • Risks of re-identification even after anonymisation
  • External vendors accessing sensitive medical records
  • Large-scale cyberattacks targeting health systems

Without robust privacy protections, trust collapses quickly.

5. Over-reliance and deskilling

If AI becomes too reliable, clinicians may gradually lose diagnostic or decision-making skills. This creates two dangers:

  • Reduced clinician expertise
  • High-stakes errors when AI systems fail unexpectedly

Human oversight must remain mandatory, not optional.

6. Inequality of access

Advanced AI tools are expensive. If large hospitals adopt them while rural or underfunded facilities cannot, a two-tier health system may emerge. Ethical healthcare must ensure access is fair, not dictated by geography or wealth (1).

Ethics of AI in healthcare

Case Studies: What Real-World Deployments Have Taught Us

Case Study 1: IBM Watson for Oncology

Watson aimed to revolutionise cancer care, but clinical evaluations later revealed inconsistencies and occasional unsafe recommendations[8]. Many insights were based on hypothetical scenarios rather than real patient data, highlighting the importance of real-world validation, transparency, and clinician oversight.

Case Study 2: Google DeepMind & Royal Free NHS Trust

In 2017, the UK Information Commissioner’s Office ruled that patient data used for an AI-powered kidney injury detection project had been shared without proper patient consent[5]. Although the clinical goal was admirable, the lack of transparency damaged public trust.

Case Study 3: AI for diabetic retinopathy screening

On a positive note, AI systems for early detection of diabetic retinopathy have been successfully deployed in both low-resource and high-income settings (9). This represents AI at its best: validated, predictable, and targeted at a clear clinical need.


How should we regulate AI in healthcare?

Good regulation protects patients without stifling innovation. Several global frameworks now shape AI governance in healthcare.

  1. AI regulated as a medical device
    The US FDA and the EU AI Act classify many AI tools as medical devices requiring strict evaluation and monitoring[6, 7]. HIPAA and GDPR protect sensitive healthcare data.

  2. Continuous post-deployment monitoring
    Because AI systems can drift over time, ongoing audits are essential.

  3. Mandatory human oversight
    Clinicians must remain the final decision-makers.

  4. Transparency for patients
    Patients should know when AI influences their care and understand its limitations.

  5. Fairness audits
    Algorithms must be tested across demographic groups to ensure equitable performance (4).


Ethical guidelines for developers and hospitals

Ethical AI is not something you finish — it is something you continuously maintain, review, and improve.

For developers

  • Use diverse, representative datasets
  • Document limitations clearly
  • Build explainability into system design
  • Conduct fairness and safety audits
  • Involve clinicians early
  • Prioritise privacy-by-design approaches

For healthcare institutions

  • Train staff on AI usage and risks
  • Establish AI governance committees
  • Monitor model performance regularly
  • Create clear accountability frameworks
  • Communicate openly with patients
  • Treat ethics as an ongoing responsibility

The human element: why trust matters most

Healthcare is ultimately a human experience. Technology can support it, amplify it, and streamline it — but it cannot replace its human foundation.

  • Trust between patient and clinician
    Patients need reassurance that clinical judgement, empathy, and professional experience remain central to decision-making.

  • Trust in the healthcare system
    Ethical, transparent AI adoption reinforces confidence that patient wellbeing comes first.

  • Trust that AI will enhance, not undermine, care (1)
    When framed as a partner rather than a replacement, AI can genuinely strengthen healthcare delivery.

Patients will accept AI only when they believe it is safe, fair, transparent, and genuinely helpful. Fear and secrecy erode trust; openness and ethical grounding build it.


Conclusion

AI has the potential to reshape healthcare — improving diagnosis, accelerating research, and easing administrative burdens. But these opportunities come with serious ethical obligations.

A balanced approach — safeguarding privacy, ensuring fairness, clarifying accountability, and preserving the clinician’s role — is essential.

If healthcare leaders, policymakers, technologists, and clinicians work together, AI can help build a future where healthcare is more personalised, more efficient, and ultimately more humane.


References

  1. Topol, E. (2019). Deep Medicine: How Artificial Intelligence Can Make Healthcare Human Again.
  2. Floridi, L., & Mittelstadt, B. (2016). The Ethics of Biomedical Big Data. Springer.
  3. Price, W. N., & Cohen, I. G. (2019). Privacy in the age of AI. Nature Medicine, 25.
  4. Obermeyer, Z., et al. (2019). Dissecting racial bias in an algorithm used to manage population health. Science.
  5. UK Information Commissioner’s Office (2017). Royal Free NHS Foundation Trust and Google DeepMind Investigation Report.
  6. U.S. FDA. Proposed Regulatory Framework for Modifications to AI/ML-Based Software.
  7. EU AI Act (2024 Draft).
  8. IBM Watson for Oncology case evaluations (2018–2020).
  9. Ting, D. S., et al. (2017). AI for diabetic retinopathy screening. JAMA.

Find Top NLP Talent!

Looking for experts in Natural Language Processing? Post your job openings with us and find your ideal candidate today!

Post a Job

Launching Harmony Meta
Ai in research

Launching Harmony Meta

We are excited to introduce the new Harmony Meta platform, which we have developed over the past year. Harmony Meta connects many of the existing study catalogues and registers.

How can you use large language models and stay HIPAA or GDPR compliant?
Generative ai

How can you use large language models and stay HIPAA or GDPR compliant?

If you are developing an application that needs to interpret free-text medical notes, you might be interested in getting the best possible performance by using OpenAI, Gemini, Claude, or another large language model. But to do that, you would need to send sensitive data, such as personal healthcare data, into the third party LLM. Is this allowed?

Finding topics in free text survey responses
Natural language processing

Finding topics in free text survey responses

How can you use generative AI to find topics in a free text survey and identify the commonest mentioned topics? Imagine that you work for a market research company, and you’ve just run an online survey. You’ve received 10,000 free text responses from users in different languages. You want to quickly make a pie chart or bar chart showing common customer complaints, broken down by old customers, new customers, different locations, different spending patterns, and demographics.

What we can do for you

Transform Unstructured Data into Actionable Insights

Contact us