AI in Healthcare: What the Board of Directors Should Be Addressing
With the expanded use and implementation of artificial intelligence (AI) in professional and personal life, many organizations need to start planning for the changes and risks that come with the shifting landscape. Boards of Directors should address how AI is impacting the healthcare industry, how to create a policy as AI is being implemented across organizations, and how AI is utilized within the organization to drive efficiencies, improve patient outcomes, and create or maintain a competitive advantage over competitors.
Current and Future Roles of AI in Healthcare
First, Boards of Directors should consider is how AI is changing the healthcare industry. The National Center for Biotechnology Information (NCBI) has some predictions of the application of AI in healthcare over the next ten or more years. In the next five years, organizations should expect an increase in augmented care. This will enhance care in these areas:
- Telehealth and mental health support services through utilizing a variety of tools, such as smart devices, to track data;
- AI tools to read data and improve decision making; and
- Virtual and mixed reality for mental health treatment, pain management, and education.
In the next five to ten years, AI will begin using a variety of health data for treatment, diagnostics, and preventive care. This would include embedded sensors, automated scribes, and AI interpretation of X-rays and lab reports. In ten or more years, there could be virtual health assistants, consolidated digital infrastructure, and new treatments and drug discovery from the use of AI. There are already virtual assistants participating in care and preparatory work at various health systems across the country. These virtual assistants often receive better ratings, provide more consistent feedback to patients, and have an improved demeanor when compared to live assistants. These AI initiatives will lead to a more precise system of healthcare.
Risks of AI in Healthcare
Second, Boards of Directors will want to understand the risks that come with using AI and develop a policy. In some organizations, healthcare providers may be using AI to assist their own practice without the approval or knowledge of management and the board. The NCBI suggests organizations develop a checklist that addresses legal, ethical, transparency, and reliability concerns. AI uses data to make decisions, some of which may be personal health information (PHI) protected by HIPAA. Questions to ask when adopting a policy would be:
- Who is authorized to use AI within the organization;
- What data can be shared and used; and
- Does the shared data remain confidential?
For additional guidance on developing a policy, visit here.
Utilization Decisions for AI in Healthcare
Last, Boards of Directors should consider how they want to use AI within their organizations and their appetite for risk associated with AI. Board members need an understanding of how AI is already being used and how competitors are using it. They will also need to know how it can affect the workforce, patient confidentiality, and their compliance with legal, regulatory, and ethical standards. Awareness of potential efficiencies and innovations, as well as any operational and financial impacts (both positive and negative), is critical.
The Board of Directors have the responsibility of overseeing and monitoring management, compliance, risk, and ethics. AI implementation touches each of these areas, so it is important for an organization’s board to be aware of how AI can and will impact the organization as a whole.
If you have questions about the information outlined above, McKonly & Asbury’s experienced professionals are here to help. Learn more about our Healthcare practice by visiting our Healthcare industry page or by contacting the Director of our Healthcare practice, Janice Snyder, Partner.
About the Author
Jesse is an Assurance Supervisor, where he specializes in serving nonprofit and healthcare organizations. He provides audit, assurance, and advisory services to a broad range of mission-driven entities, including charitable organizations, foundations, associations, and social service providers.
In his role, Jesse manages day-to-day audit operations, mentors junior staff, and works closely with clients to ensure timely and accurate financial reporting. His technical knowledge includes Uniform Guidance audits and Generally Accepted Government Auditing Standards (GAGAS). Known for his thoroughness and collaborative leadership style, Jesse is dedicated to building strong client relationships and delivering high-quality service. He is actively involved in staff training and plays a key role in process improvement initiatives within the firm.
