A Practical Guide to Thriving in an Era of Intelligent Risk
By Jena Taft
Senior Counsel, Dykema DSO Industry Group
The conversation around technology and artificial intelligence in healthcare has shifted dramatically. What was once a futuristic concept is now an everyday reality in dental practices across the country. As AI tools become increasingly integrated into clinical workflows, from diagnostic imaging to patient communications, dental support organizations and independent practices alike face a critical question: how do we harness the benefits of AI while navigating a developing regulatory landscape?
The answer is not simple, but it is necessary. As someone who has worked extensively with dental groups and healthcare providers, I can tell you that AI regulation is not coming in the distant future it is unfolding now, and providers need to prepare accordingly.
A Current Regulatory Landscape
There is currently no blanket federal law governing AI use in healthcare, and there may not be any time soon. Instead, we are seeing a patchwork of state regulations emerge, each with its own requirements and enforcement mechanisms. This creates complexity, particularly for multi-state operators, but it also reflects the reality that AI regulation is being shaped in real time as the technology evolves.
The current administration has signaled a preference for deregulation and staying competitive in what many call the “AI race.” This aligns with traditional conservative approaches to regulation, favoring innovation over restrictive oversight. However, states are moving forward with their own frameworks. Several states, including California, Colorado, Texas, Pennsylvania, and Florida have all enacted AI-related legislation, with varying degrees of specificity for healthcare applications.
What is particularly interesting about this state-level activity is that it includes traditionally business-friendly states like Texas and Florida. When conservative states begin regulating AI in healthcare, it signals that this is not a partisan issue but a matter of patient safety and professional accountability. The tension between federal deregulation efforts and state-level protections will be something to watch closely over the coming months.
Meanwhile, federal agencies like the Department of Health and Human Services (HHS), the Office for Civil Rights (OCR), and the Food and Drug Administration (FDA) continue to shape standards and oversight mechanisms. These are the same agencies that have regulated healthcare for decades, and they are not stepping aside. Instead, they are developing frameworks and guidelines to help providers understand their obligations when using AI-powered tools.
The Promise and Pitfalls of AI in Dental Practice
The benefits of AI in dentistry are real and compelling. AI excels at automation, saving time on administrative tasks like chart notes, scheduling, and billing. It supports clinical decision-making by providing earlier and more accurate detection of conditions that might otherwise go unnoticed. Enhanced patient management systems powered by AI can improve outcomes and streamline operations.
However, these advantages come with significant risks that cannot be ignored. False negatives and false positives remain a concern, though the technology is improving rapidly. In fact, AI is becoming better at self-correction than we are at correcting it. We are already seeing AI tools designed to monitor and fix other AI systems, creating layers of technological oversight that were unimaginable just a few years ago.
Core Concepts for AI Compliance
State regulations share several common themes that dental practices should embrace as best practices, regardless of where they operate. These principles represent the foundation of responsible AI use in healthcare.
Transparency. States like Texas now require conspicuous disclosure to patients when AI is used in their care. This cannot be buried in fine print or treated as a passive consent buried in onboarding paperwork. Patients must understand, in clear language, how AI is being used in their treatment. If you cannot explain your AI tools to patients, that is a sign you do not understand them well enough yourself.
Provider in the Loop. I prefer the term “provider in the loop” to the generic “human in the loop” because it emphasizes the professional responsibility to patients. A dentist cannot delegate clinical decision-making to an algorithm, no matter how sophisticated. The practitioner bears ultimate liability for patient care, which means every AI recommendation must be reviewed, understood, and consciously adopted or rejected by a licensed professional.
Bias Prevention. This is a relatively new concern in healthcare regulation, distinct from traditional anti-discrimination protections. AI systems can inadvertently perpetuate or amplify biases present in their training data, leading to disparate outcomes for different patient populations. Practices must be proactive in evaluating whether their AI tools perform equitably across diverse patient demographics.
Audits and Monitoring. This is not entirely new territory. Dental practices should already be conducting chart audits and monitoring compliance with existing regulations. AI simply adds another layer to these processes. If your compliance program is not robust at baseline, integrating AI responsibly will be challenging.
Managing Vendor Relationships and Contracts
One of the most important protections practices can implement is controlling how AI vendors use their data. Many vendors use AI models that train themselves on real-world data from its exposed to. While this will help improve the technology over time, it creates significant privacy and liability risks for the practice.
Vendor contracts should be revised to explicitly prohibit the use of patient information or practice data to train AI models unless you have obtained proper consent and understand exactly how the data will be used. If your contracts are silent on this issue, vendors may assume they have permission. This is not acceptable. You are the custodian of patient information, and you cannot delegate that responsibility to a technology company without clear contractual protections.
Building an Effective Compliance Program
Not every practice has capacity or capital for a full-time compliance or AI-specific compliance officer, but every practice can designate someone to monitor AI-related developments and ensure policies are followed. This person does not need to be a technology expert, but they should understand your AI tools well enough to spot potential issues and know when to escalate concerns.
Written policies and procedures are essential, but they must be living documents. The regulatory environment is changing too rapidly for casual reviews every few years. Depending on your utilization, Practices should consider monthly or quarterly check-ins on AI operations and corresponding regulations to ensure they remain current. Start with a baseline policy that addresses the core principles and update as needed for new developments.
A collaborative culture where employees feel empowered to flag potential problems without fear is critical. This is a basic element of any compliance program, but it is particularly important with AI because novelty means issues may emerge unexpectedly.
From Surviving to Thriving
We are entering a defining period for AI in dentistry – one that will reward well-prepared and adaptable practices with more opportunities. With the pace of AI developments, DSOs and practices can feel like they are just surviving and not thriving – but as tools improve, adoption will accelerate and regulatory expectations will become more defined.
With thoughtful planning, robust compliance programs, and a commitment to patient protection, practices can position themselves to thrive in this new era. Recognize that AI is not going to replace dentists, but dentists who learn to use AI effectively will have significant advantages over those who do not.
This is an inflection point for those willing to engage seriously with both the technology and the regulations that govern it. Build your compliance foundation now, stay informed about regulatory developments, and do not hesitate to seek expert guidance when you need it. The practices that invest in understanding and managing AI responsibly today will be the ones that thrive tomorrow.
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Jena Taft is Senior Counsel at Dykema, where she focuses on healthcare law and business transactions for dental service organizations and healthcare providers. She can be reached at jtaft@dykema.com.
