Hospitals Urged to Involve Legal Teams Early in AI Governance

Hospitals Urged to Involve Legal Teams Early in AI Governance

Hospitals embracing artificial intelligence (AI) are being urged to involve legal and compliance teams earlier in the process to ensure innovation is balanced with risk management.

Legal experts warn that many healthcare organizations are adopting AI tools faster than they can fully evaluate them, creating potential gaps in oversight. Attorneys from Sheppard Mullin Richter & Hampton LLP emphasized that while AI offers significant benefits in clinical care and research, it also introduces complex legal and ethical challenges.

The recommendations emerged from an April forum led by partner Carolyn Metnick, where legal, insurance, and healthcare leaders discussed strategies for responsible AI integration. The discussion focused on maintaining patient trust, ensuring data privacy, and supporting innovation without unnecessary delays.

Six Key Recommendations

Healthcare leaders outlined six essential steps for strengthening AI governance:

Shared responsibility for AI oversight

AI governance should involve collaboration across departments, including legal, clinical, operational, and executive teams. Physicians, in particular, should play an active role when AI directly impacts patient care.

Address gaps in privacy regulations

Existing laws, such as the Health Insurance Portability and Accountability Act (HIPAA), were not designed for adaptive AI systems. Hospitals must implement stronger internal policies, conduct risk assessments, and ensure clear patient consent.

Expand legal involvement in vendor decisions

Legal teams should go beyond contract reviews and participate in evaluating AI vendors, working closely with business and operational units to assess risks.

Evaluate long-term risks

Experts stressed the importance of considering long-term implications, including cybersecurity threats, data privacy concerns, and regulatory compliance—especially when working with emerging AI providers.

Integrate AI into broader governance frameworks

AI tools should align with an organization’s overall governance strategy, factoring in clinical applications, data usage, and operational impact.

Enable innovation, not hinder it

Legal and compliance teams are encouraged to act as facilitators. Overly restrictive approaches may slow progress and limit the potential benefits of AI in healthcare.

Balancing Innovation and Accountability

A key takeaway from the forum is that successful AI adoption depends not only on technology but also on human factors such as transparency, ethical decision-making, and effective communication.

As hospitals continue to integrate AI into their operations, early involvement of legal expertise is increasingly seen as critical to achieving both innovation and accountability.