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From Policy to Practice

Adapting to AI Legislation in the Healthcare Sector

In 2024, the United States witnessed a significant surge in state-level legislation aimed at regulating artificial intelligence (AI), with 45 states introducing nearly 700 AI-related bills, a substantial increase from the 191 bills in 2023. This legislative activity reflects growing concerns about AI’s societal impact and the necessity for comprehensive governance frameworks.

We’ve explored the information available on recent law changes and expectations for new legislation that may impact the way that healthcare leaders implement technology moving forward. Here are some key takeaways.

New regulations

Enacted AI Legislation Across States

Several states have enacted notable AI-related laws:

  • Enacted comprehensive legislation (effective 2026) requiring developers and deployers of high-risk AI systems to exercise reasonable care to prevent algorithmic discrimination and mandated disclosures to consumers.

Governor Gavin Newsom signed over a dozen AI-focused bills addressing various concerns, including transparency in AI training data, AI risk management, and the use of AI in healthcare. Notably, AB-2013 mandates that, effective 2026, generative AI providers disclose information about the datasets used to train their models.

  • Passed the ELVIS Act, the nation’s first legislation aimed at regulating AI simulation of image, voice, and likeness, protecting artists’ rights against unauthorized AI-generated impersonations.

AI Legislation Impacting the Healthcare Industry

AI’s integration into healthcare has prompted specific legislative measures:

  • AB-3030 requires healthcare providers to disclose when generative AI is used to communicate with patients, especially when conveying clinical information. Additionally, SB-1120 establishes limits on automating services in healthcare, ensuring licensed physicians oversee AI tool usage.
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Proposed AI Legislation Under Consideration

Several states are deliberating AI-related bills. Some examples:

  • The Texas Responsible AI Governance Act (TRAIGA) is under consideration, aiming to establish obligations for developers, deployers, and distributors of high-risk AI systems, with specific provisions for AI applications in healthcare.
  • Proposed legislation seeks to amend state codes to add restrictions on AI-driven decision-making in insurance coverage and healthcare, requiring human oversight for AI-generated decisions.

Predictions for 2025-2026:

The trajectory of AI legislation suggests an increase in both state and federal regulations, particularly concerning high-risk applications like healthcare. States may adopt comprehensive AI governance frameworks, similar to Colorado’s approach, focusing on transparency, accountability, and bias mitigation. 

Based on takeaways from the Blueprint for an AI Bill of Rights: Making Automated Systems Work for the American People developed by The White House in 2022 and enhanced again in 2023, the federal government is expected to enhance its role in establishing nationwide AI standards, potentially through new legislation or executive actions.

With what we have seen this year, we expect to see even greater regulatory movement in 2025. What is your organization doing to prepare?

Preparation Strategies for Healthcare Stakeholders

  • Stay Informed:
    Regularly monitor legislative developments at both state and federal levels to ensure compliance with emerging AI regulations.
  • Implement Compliance Programs:
    Develop and maintain robust compliance programs that align with current and anticipated AI laws, focusing on transparency, data privacy, and ethical AI use.
  • Engage in Policy Discussions:
    Participate in industry groups and public consultations to influence AI policy-making and stay ahead of regulatory changes.
  • Invest in Training:
    Educate staff on the ethical use of AI and the importance of compliance with relevant laws to foster a culture of responsibility.
  • Secure Qualified Assistance: 
    Capitalize on services like BHM’s Business Intelligence Consulting to help you prepare for the inevitability of more stringent regulatory controls. 

References

  1. National Conference of State Legislatures (NCSL)
    “Artificial Intelligence 2024 Legislation.“
  2. Foley & Lardner LLP
    “Decoding California’s Recent AI Laws.“
  3.  Idaho Capital Sun
    “After Passing a Few AI Laws in 2024, Idaho Legislature Might Have More in Store Next Session.”
  4. Medscape
    “New State Law Will Restrict AI Prior Authorization Coverage.“
  5. StateScoop
    “AI Legislation: State Regulation 2024.”
  6. BSA TechPost
    “2024 State Summary on AI.” 
  7. Inside Global Tech
    “Texas Legislature to Consider Sweeping AI Legislation in 2025.”

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Our Business Intelligence Consulting services can help you get ahead of regulations.

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Key Takeaways | Summary

  • Surge in AI Legislation
    In 2024, the United States experienced a dramatic increase in state-level AI legislation, with 45 states introducing nearly 700 AI-related bills—more than triple the number from 2023. This surge underscores growing concerns about AI’s societal impact and the need for comprehensive governance.

  • Focus on High-Risk Applications in Healthcare
    Several enacted and proposed laws specifically address AI in healthcare, emphasizing transparency, patient communication, and human oversight. For example, California mandates disclosure of AI use in patient communications, and Colorado’s forthcoming legislation requires safeguards against algorithmic discrimination.

  • Predicted Trends in AI Regulation
    The trajectory suggests an increase in both state and federal AI regulations, with a focus on high-risk areas like healthcare. Future frameworks are expected to prioritize transparency, accountability, and bias mitigation, drawing inspiration from the Blueprint for an AI Bill of Rights.

  • Proactive Strategies for Healthcare Organizations
    To navigate the evolving regulatory landscape, healthcare leaders should:

    • Stay informed about legislative changes.
    • Implement robust compliance programs focused on ethical AI use.
    • Engage in policy discussions to influence regulation.
    • Invest in staff training to foster a culture of compliance and responsibility.