Healthcare providers, payors, and other healthcare organizations should be aware of a recently announced, “first-of-its-kind” settlement between the Texas attorney general and a healthcare generative artificial intelligence (AI) company resolving allegations that the company made a series of false and misleading statements about the accuracy and safety of its AI products. The settlement highlights the potential for enforcement against companies that utilize AI in a healthcare setting under existing laws that are not specific to AI and the importance of exercising caution in developing claims about an AI product’s efficacy or performance.
Texas AG’s Landmark AI Settlement: A Wake-Up Call for Health Tech & AI Companies
By Jiayan Chen, Dale C. Van Demark, Jennifer S. Geetter, Shawn C. Helms and Grayson I. Dimick on October 3, 2024
Jiayan ChenJiayan Chen is deeply experienced in the regulatory, transactional and strategic issues that arise when leveraging health information, biospecimens and technology to drive healthcare innovation and quality. She guides stakeholders on privacy compliance and research compliance and in the context of strategic initiatives and collaborations as they seek to harness the power of data, machine learning, DNA sequencing and technologies to develop and deploy new products and solutions and address challenges in healthcare delivery and payment. Read Jiayan Chen's full bio.
Dale C. Van DemarkWith his robust experience in health system affiliations, joint venture transactions, cross-industry collaborations and the development of new healthcare delivery models, Dale C. Van Demark works at the forefront of strategic transactions and digital health matters in the health, life sciences and technology industries. As a sought-after legal, strategic and policy advisor, he’s well-informed on integrating information technology into healthcare and has worked with clients in the realms of delivery of care, life sciences research and development, and artificial intelligence. Dale C. Van Demark serves as a co-chair of the Firm's Digital Health practice. Read Dale Van Demark's full bio.
Jennifer S. GeetterJennifer S. Geetter advises global life sciences, health care and informatics clients on legal issues attendant to biomedical innovation, research compliance, financial relationship management, digital health practices, and global privacy and data security laws. Jennifer represents a broad range of clients. Read Jennifer Geetter's full bio.
Shawn C. HelmsShawn C. Helms is co-head of the Firm’s Technology Transactions & Outsourcing Practice. Shawn has broad experience in the areas of information technology, outsourcing, blockchain, crypto, artificial intelligence (AI), digital health and telecommunications. He focuses his practice on complex transactions involving technology and intellectual property, including information technology outsourcing (ITO), business process outsourcing (BPO), licensing, cloud computing arrangements (IaaS, SaaS and PaaS), technology maintenance and services, technology development/customization (including iPhone and Android), wireless infrastructure, AI, generative AI (such as ChatGPT and Stable Diffusion), social media issues, strategic alliances, e-commerce, internet of things (IoT), confidentiality, strategic sourcing and data security/privacy. Shawn has considerable experience in blockchain and cryptocurrency matters including NFTs, DAOs and enterprise blockchain applications. Shawn regularly works on the transactional aspects of cryptocurrency bankruptcy and liquidation matters. Shawn also regularly works on digital health matters involving wearables, data licensing and strategy issues, AI and mobile applications. He also advises clients on IT and IP diligence, transition services agreements (TSAs) and other technology and intellectual property matters relating to the acquisition or divestiture of businesses. Shawn also has significant experience in advising clients through software audits and related negotiations and settlements, open source software issues and software escrow matters. Read Shawn Helms' full bio.
Grayson I. DimickGrayson I. Dimick focuses her practice on regulatory and transactional matters affecting a wide range of clients across the health care industry. Grayson advises clients on a variety of issues, including the regulatory and compliance aspects of digital health. She also conducts due diligence on health care transactions. Read Grayson Dimick's full bio.
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