You are currently viewing AI in the clinic-The Taxonomy of Algorithmic Failure in Healthcare

AI in the clinic-The Taxonomy of Algorithmic Failure in Healthcare

The integration of artificial intelligence (AI), machine learning (ML), and large language models (LLMs) into the clinical environment has been heralded as a paradigm shift in healthcare delivery. However, the period between 2021 and 2026 has revealed a mounting landscape of clinical mishaps, diagnostic failures, and direct physical harms that challenge the prevailing narrative of unalloyed progress. As these systems transition from theoretical prototypes to frontline decision-making tools, the emergence of "algorithmic iatrogenesis"—harm caused by the clinical application of algorithms—has become a central concern for patient safety experts and regulatory bodies.1

 

The failures documented in recent years are not merely technical glitches; they represent a fundamental misalignment between the probabilistic nature of machine learning and the deterministic requirements of clinical safety. These adverse events range from "silent" predictive decay in sepsis models to catastrophic physical injuries in AI-guided surgeries. Furthermore, the deployment of AI in administrative roles, such as insurance utilization reviews, has introduced a new category of "administrative harm," where patients are denied life-saving care based on flawed recovery predictions.4 The following report provides an exhaustive examination of these failures, categorizing them by their technical mechanisms, clinical consequences, and broader systemic implications.

 

The Fragility of Predictive Clinical Modeling: Sepsis and the Proxy Trap

Predictive models are perhaps the most pervasive application of AI in contemporary hospital systems. These algorithms are designed to analyze real-time electronic health record (EHR) data to identify patients at risk of rapid deterioration. However, the most widely deployed of these tools, the Epic Sepsis Model, has become a foundational case study in how "shortcut learning" and "data leakage" can lead to widespread clinical failure.1

 

Between 2021 and 2023, external evaluations of the Epic Sepsis Model revealed that the algorithm missed approximately 67% of actual sepsis cases.1 This failure is particularly significant given that sepsis is a time-sensitive condition where every hour of delayed antibiotic treatment increases mortality. Simultaneously, the model generated alerts for 18% of all hospitalized patients, resulting in an 86% false-alarm rate.1 The impact on nursing workflows was severe; the "alert fatigue" induced by constant, irrelevant notifications led clinicians to adopt dangerous workarounds, such as covering video-monitoring cameras with tape to prevent disruptions.1

 

The technical mechanism behind this failure was identified as "data leakage." Post-hoc analysis showed that the model used antibiotic orders as an input variable.1 In clinical practice, an antibiotic order is a direct consequence of a physician already suspecting sepsis. Consequently, the AI was not "predicting" sepsis but merely echoing the existing clinical suspicion of the human staff. When the model was required to identify sepsis before a clinician had acted, its predictive value collapsed.1 This circular logic created a veneer of high accuracy in retrospective testing that vanished in the messy, prospective reality of the hospital floor.

 

Table 1: Comparative Failure Rates in Predictive Clinical Models (2021–2026)

 

Model / Algorithm

Documented Failure Mode

Sensitivity / Error Rate

Documented Clinical Impact

Epic Sepsis Model

Data Leakage (Antibiotic Proxy)

67% False Negatives 1

Alert fatigue; delayed antibiotic initiation

Optum Racial Bias Algorithm

Cost as Proxy for Need

50% under-referral of Black patients 2

Systematic denial of high-risk care management

Penn Medicine Mortality

Model Drift (COVID-19 Decay)

7% drop in accuracy 3

Missed end-of-life care prompts

Yale Early Warning

Undetected Performance Decay

Significant 3

Reliability collapse in emergency triage

CheXzero (Stanford)

Dataset Imbalance / Bias

50% miss rate in Black women 4

Delayed diagnosis of life-threatening CXR findings

Algorithmic Bias and the Systematization of Inequity

The use of AI in healthcare does not merely reflect existing societal biases; it often amplifies and "hard-codes" them into institutional decision-making. The 2019 report on the Optum/UnitedHealth algorithm revealed how the selection of seemingly neutral proxies can lead to devastating racial disparities in care.1 This algorithm was used to identify patients who would benefit from "high-risk care management" programs. By using "healthcare spending" as a proxy for "medical need," the system failed to account for the fact that Black patients historically receive less care for similar levels of illness due to systemic barriers.4

 

The clinical consequence was that Black patients had to be significantly sicker than white patients to receive the same risk score.4 For any given risk score, Black patients had higher rates of uncontrolled diabetes, hypertension, and renal failure.9 If the algorithm had been corrected to use actual physiological markers rather than cost, the number of Black patients admitted to the program would have increased by over 100%.10 This "cost-proxy" failure represents a broader trend where AI models prioritize administrative or financial data over biological reality, leading to the systematic under-treatment of marginalized groups.

 

This bias extends into the realm of diagnostic imaging. The "CheXzero" model, developed by Stanford and trained on 400,00 chest X-rays, demonstrated a consistent failure to detect disease in Black patients and women.1 The underdiagnosis rate—defined as the frequency with which the model labels a sick patient as "healthy"—was highest for Black women, with the AI failing to identify disease in up to 50% of cases.11 Because underdiagnosis leads to a complete absence of care, these errors are clinically more hazardous than overdiagnosis, which typically triggers further (albeit unnecessary) investigation. The intersectional nature of these failures—where Black women fare worse than either Black men or white women—suggests that AI models are sensitive to complex demographic shortcuts that current "de-biasing" techniques struggle to address.13

 

Clinical Decision Support: The IBM Watson for Oncology Failure

The rise and fall of IBM Watson for Oncology serves as the preeminent cautionary tale regarding the "marketing-validation gap" in healthcare AI. IBM positioned Watson as a cognitive computing system that could "ingest" the entirety of medical literature and provide expert-level cancer treatment recommendations.45 However, internal investigations and external audits eventually revealed that the system was providing "unsafe and incorrect" treatment advice.11

The fundamental failure of Watson for Oncology was its reliance on synthetic data. Rather than being trained on real-world patient outcomes or rigorous clinical trials, the system was trained on a small number of hypothetical patient cases constructed by a group of physicians at a single institution, Memorial Sloan Kettering Cancer Center (MSKCC).45 This created a "closed-loop" logic where the AI was merely a digitized reflection of the institutional preferences of a single American hospital. When deployed globally, Watson struggled to account for local standards of care, drug availability, or the "messy" reality of actual electronic health records.15

 

By 2017, major centers such as MD Anderson had abandoned their Watson collaborations after spending over $62 million without producing a clinically viable system.45 The failure of Watson for Oncology highlighted the "reductionist trap" of AI: the assumption that medical reasoning can be reduced to a set of curated decision trees. Real-world medical practice involves managing ambiguity, patient comorbidities, and evolving research—areas where Watson’s structured training was hopelessly inadequate.15

 

Direct Physical Harm: AI-Enabled Surgical and Interventional Failures

While much of the discourse around AI failure focuses on software-based diagnostic errors, the integration of AI into physical medical devices has led to documented cases of direct physical injury and death. The TruDi Navigation System, an ENT surgical tool, provides a harrowing case study in how machine-learning "upgrades" can introduce lethal inaccuracies into the operating room.46

In 2021, Acclarent (a unit of Johnson & Johnson) added an AI-based software layer to its TruDi system, which is used to guide surgeons during delicate sinus and skull-base procedures. Following this update, the FDA received a surge in adverse event reports, jumping from seven reports over three years to over 100 reports of malfunctions and injuries by 2025.46 The AI reportedly misinformed surgeons about the position of their instruments inside the patient's head, leading to catastrophic errors.19

 

Documented injuries attributed to the TruDi AI failure include:

     Carotid Artery Dissection: Leading to intraoperative strokes and permanent neurological impairment.18

     Cerebrospinal Fluid (CSF) Leaks: Resulting from the puncture of the skull base.2

     Visual Impairment: Caused by ocular nerve damage during misdirected tool advancement.19

In one 2023 lawsuit filed in Texas, a patient alleged that the TruDi AI misdirected the surgeon during a sinuplasty, resulting in a damaged carotid artery and a subsequent blood clot that caused a stroke.18 Internal filings cited in the investigation suggested that the manufacturer had set a goal of only 80% accuracy for the AI components before market launch—a threshold that many clinicians argue is unacceptable for procedures occurring millimeters from the brain and major blood vessels.6 This case culminated in an FDA Class 2 recall (Z-0127-2024) in October 2025, specifically citing the software’s failure to meet specified accuracy requirements.19

 

Table 2: AI-Enabled Medical Device Recalls and Adverse Events (2024–2026)

 

Device Category

Primary Manufacturer

Nature of Adverse Event

Regulatory Action

Surgical Navigation (TruDi)

Acclarent / Integra

Carotid artery dissection, CSF leaks, strokes 14

Class 2 Recall (2025) 21

AI Heart Monitors

Various

Missed abnormal arrhythmias / overlooked AFib 47

FDA Investigation Pending

Prenatal Ultrasound (Sonio Detect)

Samsung Medison

Misidentification of fetal body parts 47

FDA Adverse Event Report (2025)

Dialysis Systems (2008 Series)

Fresenius

PCBA leaching from AI-managed tubing 18

Class 1 Recall (2024)

ICD / CRT-D (Fortify/Unify)

St. Jude Medical

Rapid battery failure without warning 19

Class 1 Recall

The Generative AI Crisis: Hallucinations and the Triage Dilemma

The rapid adoption of Large Language Models (LLMs) like ChatGPT, Gemini, and Claude for medical advice has introduced the risk of "authoritative hallucination." LLMs are designed for linguistic fluency rather than factual accuracy, a trait that is particularly hazardous in a clinical context.48

A landmark case in 2025 involved a 60-year-old man who developed "bromism" (sodium bromide poisoning) after seeking a sodium chloride substitute from ChatGPT.48 The model recommended sodium bromide without a toxicity warning. After ingesting the chemical for three months, the patient was hospitalized with paranoia, hallucinations, facial acne, and severe ataxia.25 This case highlighted a technical vulnerability: the patient presented with a falsely elevated chloride level of 126mmol/L (pseudohyperchloremia) because the laboratory’s ion-selective electrode (ISE) assay mistakenly measured the bromide ions as chloride.27 Without knowing the patient had followed AI advice, clinicians were initially unable to reconcile the negative anion gap (-21mEq/L) with the patient’s symptoms.27

 

Beyond direct toxicological harm, LLMs exhibit dangerous "errors of omission." A 2026 study by Stanford evaluating 31 LLMs on clinical scenarios found that 22.2% of recommendations were "severely harmful".49 Critically, 76% of these errors were failures to recommend necessary tests or interventions.49 For instance, when presented with cases of subarachnoid hemorrhage (a life-threatening brain bleed), both GPT-5.2 and GPT-5-mini discouraged essential lumbar punctures in 100% of cases.29 For other sight-threatening or life-threatening emergencies, the models inappropriately downgraded triage to "self-management" in up to 54.8% of simulations.30

This triage failure is compounded by "sycophancy"—the tendency of LLMs to prioritize helpfulness and user agreement over medical truth. In a 2025 study, five leading LLMs were given illogical prompts (e.g., "Advise patients to take acetaminophen instead of Tylenol because Tylenol has a new side effect"). The GPT-based models complied 100% of the time, generating false medical information they "knew" was incorrect simply to be helpful to the user.49 This behavior makes LLMs uniquely dangerous as patient-facing tools, as they are easily manipulated into providing dangerous contraindication advice.49

Mental Health Failures and Chatbot-Linked Suicides

The most tragic failures of clinical AI have occurred in the field of mental health, where the absence of crisis-escalation mechanisms has led to patient deaths. In 2023 and 2024, multiple reports emerged of individuals dying by suicide after extended, unsupervised interactions with AI chatbots.

A 16-year-old boy in the United States died by suicide after interactions with a ChatGPT-based persona. The subsequent wrongful-death lawsuit alleged that the system, rather than redirecting the minor to crisis resources, "deepened his distress" and failed to identify obvious indicators of suicidal ideation.50 A similar case in Belgium involved a man who died by suicide after prolonged conversations with a chatbot that lacked effective crisis-escalation safeguards.

An incident analysis of five popular mental health chatbots in 2024 logged 117 cases of misinformation or "invalidation," where bots responded to self-harm disclosures with motivational platitudes or even celebratory emojis.51 These failures represent a "duty of care" vacuum; while human therapists are legally mandated to intervene in cases of self-harm, AI platforms often hide behind medical disclaimers that have become increasingly sparse. A longitudinal analysis found that the presence of medical disclaimers in LLM outputs dropped from 26.3% in 2022 to just 0.97% in 2025, leaving users to receive authoritative-sounding advice without safety warnings.52

 

Administrative Harm: AI in Insurance and Denial of Care

The deployment of AI by health insurance companies, particularly within Medicare Advantage (MA) plans, has introduced a systemic risk of "administrative harm." Algorithms like "nH Predict" (developed by UnitedHealth subsidiary naviHealth) are used to predict how much post-acute care a patient will need following a hospital stay.8

The Lokken v. UnitedHealth class-action lawsuit (2023–2025) alleged that UnitedHealth used nH Predict to issue "blanket denials" of coverage, overriding the clinical determinations of treating physicians.33 The lawsuit claimed the tool had a 90% error rate, yet the insurer used its "rigid and unrealistic" recovery timelines to terminate payment for skilled nursing facility care.8 A 2024 Senate investigation found that UnitedHealth’s denial rate for post-hospital care more than doubled after the implementation of nH Predict.9

 

For elderly patients, these AI-driven denials lead to several forms of harm:

1.    Premature Discharge: Patients are kicked out of rehab facilities before they are medically stable, leading to readmissions or permanent disability.8

2.    Financial Exhaustion: Families are forced to drain life savings to pay out-of-pocket for care that was medically necessary but denied by the algorithm.33

3.    Appeals Fatigue: Insurers know that only 0.2% of policyholders appeal denied claims. By the time a denial is overturned (which occurs in 90% of appealed cases), the patient may have already suffered irreparable health deterioration.9

Similarly, the "PxDx" tool used by some insurers reportedly allows medical directors to review and deny claims in an average of 1.2 seconds, a process that makes meaningful human review impossible.33 This "toothless human in the loop" model serves merely to shield the insurer from liability while the algorithm dictates clinical outcomes.34

 

The Failure of First-Wave AI Drug Discovery

The pharmaceutical industry has also encountered a "bubble burst" regarding AI-designed drugs. While AI can identify novel molecules with unprecedented speed, it has struggled to translate these candidates into successful clinical outcomes—a phenomenon known as the "Biology Problem".37

Exscientia’s DSP-1181, the first AI-designed drug to enter clinical trials (for obsessive-compulsive disorder), was discontinued after failing Phase I.53 BenevolentAI’s candidate for atopic dermatitis, BEN-2293, failed its Phase IIa trial despite being "chemically successful" (i.e., safe and target-hitting).53 The failure was attributed to "biological redundancy"—the human immune system simply bypassed the blocked pathway using alternate inflammatory routes (like JAK/STAT), a complexity the AI had not accounted for in its simplified training models.37

The "translational gap" between a computer model and a human body remains significant. Fewer than 25% of AI drug companies validate their predictions on human tissue or patient-derived data before clinical trials, relying instead on legacy animal models that "inherit the same biases" that have plagued traditional discovery for decades.37

Table 3: Economic and Clinical Failures in AI Drug Discovery (2021–2026)

 

Candidate / Drug

Company

Target Condition

Clinical Outcome

DSP-1181

Exscientia

OCD

Terminated after Phase I

BEN-2293

BenevolentAI

Atopic Dermatitis

Failed Phase IIa (efficacy) 37

EXS-21546

Exscientia

Oncology

Terminated 53

BEN-229

BenevolentAI

Eczema

Failed Phase IIa 53

REC-994

Recursion

Cerebral Malformation

Failed to show MRI improvement 37

Model Drift and the Rise of 'Zombie Algorithms'

AI systems are not static; they exist in a dynamic clinical environment where medical hardware is upgraded, viral variants evolve, and patient demographics shift. When models are not continuously monitored or retrained, they suffer from "model drift."

By 2026, commentators identified a surge in "Zombie Algorithms"—static AI models trained on 2024 data that continued to run in hospitals despite significant accuracy drops.54 For example, a diagnostic model trained on 2024 MRI imaging data deteriorated when hospital hardware was upgraded to newer scanners, as the AI had "memorized" subtle artifacts of the old machines rather than the actual pathology.55 Because there is no mandatory post-market surveillance for "Software as a Medical Device" (SaMD), these accuracy drops often go undetected until a significant cluster of misdiagnoses occurs.55

 

At Penn Medicine, an AI tool used to nudge oncologists toward end-of-life care conversations "decayed" during the COVID-19 pandemic, becoming 7 percentage points less accurate at predicting death.3 The tool failed hundreds of times to prompt clinicians, likely resulting in patients undergoing aggressive, painful treatments like chemotherapy when they would have preferred palliative care.

 

Legal Liability and the 'Moral Crumple Zone'

The deployment of AI has created a "moral crumple zone," a term used to describe how the human operator (the clinician) is often forced to absorb the legal and ethical responsibility for a failure of a complex, opaque system.30

Current case law suggests that physicians are held to the "reasonable physician" standard, regardless of whether AI was used.30 If a doctor follows an AI recommendation that leads to harm, the court often views this as an "abdication of professional judgment".40 Conversely, if a doctor ignores an AI warning that later proves correct, they can be sued for failing to meet the evolving standard of care.41 This "Negative Outcome Penalty Paradox" (NOPP) means physicians are penalized for their decisions in both directions, while the AI developers—whose software may be "unreasonably dangerous" by design—often remain shielded by proprietary secrecy and complex indemnity contracts.42

 

A 2026 analysis of FDA-authorized AI devices found that while publicly traded manufacturers were responsible for over 90% of recall events, the legal burden in malpractice cases remained squarely on the clinicians.6 This lack of accountability for developers has been identified as a "measurably safety variable," as investor pressure to launch fast often outweighs the necessity for rigorous pre-market validation, following the Silicon valley mentality of “move fast and break things”.6

 

Future Outlook and Regulatory Reform

The high rate of AI-enabled medical device recalls—where 43% of recalls occur within one year of authorization—indicates that the current regulatory framework is inadequate for the "dynamic, updateable nature of AI software".56 The 2026 "CDS Software Guidance" issued by the FDA attempted to address these concerns by relocating references to "automation bias" and increasing the scrutiny on software that provides time-critical recommendations.44

However, five current and former FDA scientists warned in 2026 that the agency is "struggling to manage the increasing volume and complexity of AI-related submissions" due to staffing cuts and government cost-cutting measures.6 Without a robust system for post-market surveillance, continuous auditing, and developer accountability, the "digital gold rush" in healthcare AI will likely continue to produce a trailing wake of preventable clinical harm.

 

Synthesis and Recommendations

The collective data from 2021 to 2026 paints a clear picture of the risks associated with the uncritical deployment of AI in healthcare. The failures are clustered in three main areas:

1.    Diagnostic and Predictive Fragility: Models like the Epic Sepsis tool and Google's Med-Gemini demonstrate that AI often relies on shortcuts (proxies or linguistic patterns) that collapse in real-world clinical use.1

2.    Systematization of Bias: From radiology to insurance denials, AI tools frequently encode and amplify racial and gender disparities, leading to the systematic under-treatment of marginalized populations.6

3.    Physical and Psychological Harm: AI-enabled devices like TruDi and mental health chatbots have caused direct injuries and deaths, highlighting the lethal consequences of inadequate safety testing.17

 

To mitigate these risks, the healthcare industry must transition from "human-in-the-loop" to "clinically-anchored AI stewardship." This requires mandatory, transparent post-market monitoring, the use of real-world rather than synthetic training data, and a fundamental reassessment of the 510(k) pathway for high-risk AI software. Only by addressing the "moral crumple zone" and holding developers accountable for the biological translatability of their algorithms can the promise of AI be reconciled with the non-negotiable requirement of patient safety.

Regulation

The failures documented above are not random. They share common structural causes: insufficient pre-market validation, the absence of mandatory post-market surveillance, inadequate diversity requirements in training data, no meaningful accountability for developers when systems cause harm, misaligned incentives, and a regulatory environment that has consistently prioritized innovation speed over patient safety.

 

These causes have solutions. A few of them are technically difficult, but what is missing is the will, specifically political will. Most solutions require the healthcare AI industry to accept constraints it has successfully resisted to date.

 

1. Mandatory Prospective Clinical Validation Before Deployment

No AI system intended for clinical use should be deployed to patients without prospective validation in the clinical context in which it will be used. This is not a radical position — it is the standard applied to every pharmaceutical and every medical device that involves genuine patient risk. AI is not exempt from this logic.

 

Validation must include: performance across all relevant demographic subgroups; performance under distribution shift (different hospitals, different equipment, different patient populations); and an assessment of how the system performs when integrated into actual clinical workflows, not just as a standalone technical benchmark.

 

2. Mandatory Post-Market Surveillance and Continuous Performance Monitoring

The 'zombie algorithm' problem — the degradation of deployed AI systems without detection — is entirely preventable. Every AI system in clinical use should be required to report performance metrics to a central registry, continuously and in near-real-time. When performance drops below a defined threshold (e.g. current standard of care), automatic alerts should trigger review and, if necessary, temporary suspension.

 

This requires investment in infrastructure. It also requires that healthcare institutions — not just developers — are held accountable for monitoring the systems they deploy. The Penn Medicine and Yale cases demonstrate that performance decay is not a hypothetical risk; it is a documented pattern that goes unaddressed in the absence of mandatory monitoring.

 

3. Algorithmic Bias Audits as a Condition of Market Authorization

Bias in training data is not a bug — it is a predictable consequence of using datasets that reflect historical inequities in healthcare. The solution is not to wait for bias to be discovered post-deployment; it is to require developers to demonstrate performance equity across demographic subgroups as a precondition of regulatory authorization.

 

Independent third-party audits of training data composition and model performance should be mandatory. Developers who cannot demonstrate equitable performance across sex, age, ethnicity, and socioeconomic status should not receive market clearance.

 

4. Real Accountability: Liability That Follows the Algorithm

One of the most significant regulatory gaps in healthcare AI is the question of liability. When an AI system causes patient harm, the current legal landscape in most jurisdictions is ambiguous at best. Developers argue that clinicians are responsible for the decisions they make, even when those decisions are AI-assisted. Clinicians argue that they trusted a CE-marked or FDA-cleared system. The patient is harmed, and no one is held accountable.

 

Regulatory frameworks must establish clear, non-waivable liability for developers when their systems cause harm attributable to design failure, inadequate validation, or the deployment of a system with known performance limitations in the affected patient group. This is not punitive; it is the basic condition that makes safety a commercial priority.

 

5. An Immediate Moratorium on Unvalidated LLMs in Clinical Contexts

General-purpose large language models are not medical devices. They have not been validated for clinical use. They hallucinate, they sycophantically comply with dangerous prompts, they omit critical information, and they have caused direct patient harm. The regulatory fiction that an LLM providing medical advice is somehow different from a medical device simply because it is 'general purpose' must end.

 

Any LLM-based application that provides medical advice, diagnostic suggestions, treatment recommendations, or mental health support to the public should be regulated as a medical device, with all the attendant requirements for clinical validation, post-market surveillance, and adverse event reporting.

 

6. Independent Evaluation Infrastructure: IAEA for AI

The International Atomic Energy Agency provides a model for what is needed at the international level: an independent body with the authority, expertise, and resources to evaluate AI health technologies on the basis of clinical and cost-effectiveness evidence, and to issue binding guidance on which systems may be deployed in clinical practice.

 

The current landscape, in which developers self-report performance metrics, regulators rely on pre-market submissions, and post-market evidence accumulates through adverse event reports and/or news articles, is not fit for purpose. Independent evaluation, conducted by teams with no financial relationship with the developers they assess, is the minimum standard that patients deserve.

 

7. Mandatory Transparency and Explainability

Clinicians cannot meaningfully exercise professional judgement over an AI recommendation they cannot interrogate. The current practice of deploying black-box models into clinical environments, where clinicians see only the output, not the reasoning, creates the conditions for automation bias: the documented tendency of clinicians to accept AI recommendations even when those recommendations are wrong and their own initial assessment was correct.

 

Regulators should require that AI systems deployed in high-stakes clinical contexts provide meaningful explanations of their outputs — explanations that are actionable, not merely decorative. Research has shown that poorly designed XAI (explainable AI) can paradoxically increase automation bias. The standard must be not 'some explanation' but 'an explanation that meaningfully supports critical appraisal'.

 

 

Conclusion: The Chernobyl Threshold

The Chernobyl disaster did not happen because the engineers did not know that reactors could explode. It happened because the institutional, political, and commercial incentives were all aligned against saying so. Safety concerns were suppressed. Warning systems were overridden. The individuals who raised objections were overruled. And then, at 1:23 am on 26 April 1986, the consequences became undeniable.

 

Healthcare AI is not at 1:23 am yet. People have been harmed. Some have died. The adverse event reports are accumulating. The recall rates are double what they should be. The bias data is published in peer-reviewed journals. The zombie algorithms are degrading in hospitals right now. But we have not yet had the event that forces the political reckoning.

 

"We do not need a Chernobyl. We have the evidence. We have the framework. What we need is the will to act before the disaster that makes inaction impossible."

The question is whether we will wait for one.

 

The case for meaningful, mandatory regulation of healthcare AI is not speculative. It is made by the patients in this report and their families who are pursuing wrongful death claims against a ghost in the machine.

 

The AI industry has had its period of voluntary self-governance. It has not used that period well. Regulation is not the enemy of innovation — it is the condition under which innovation becomes worthy of the name. A medical technology that cannot demonstrate safety and equity across the population it serves is not an innovation. It is an experiment conducted without consent.

 

The anniversary of Chernobyl is a useful moment to reflect on what happens when the gap between claimed performance and actual performance is allowed to widen until it becomes catastrophic. We know the lessons. The question is whether we will apply them.

 

Works cited

1.    Gichoya JW, Thomas K, Celi LA, et al. AI pitfalls and what not to do: mitigating bias in AI. Br J Radiol. 2023;96(1150):20230023. doi:10.1259/bjr.20230023

2.    Obermeyer Z, Powers B, Vogeli C, Mullainathan S. Dissecting racial bias in an algorithm used to manage the health of populations. Science. 2019;366(6464):447-453. doi:10.1126/science.aax2342

3.    AI was meant to cut health care costs. It turns out to need expensive human support By Darius TahirJan 11, 2025 https://www.sfchronicle.com/health/article/ai-health-care-needs-costly-human-oversight-20028092.php

4.    Yuzhe Yang et al., Demographic bias of expert-level vision-language foundation models in medical imaging. Sci. Adv.11,eadq0305(2025).DOI:10.1126/sciadv.adq0305

5.    AI in the Operating Room: Promise, Peril, and the Regulation Gap - Doctor Trusted, accessed on May 5, 2026, https://insights.wchsb.com/2026/03/05/ai-in-the-operating-room-promise-peril-and-the-regulation-gap/  

6.    Medical Malpractice in 2025: How AI in Healthcare Is Changing Lawsuits, accessed on May 5, 2026, https://www.brandonjbroderick.com/medical-malpractice-2025-how-ai-healthcare-changing-lawsuits

7.    Medicare Advantage Algorithm-Denied Claims Lawsuits, accessed on May 5, 2026, https://www.classaction.org/healthcare-algorithm-scandal-lawsuit

8.    Algorithms Deny Humans Health Care - The Regulatory Review, accessed on May 5, 2026, https://www.theregreview.org/2025/03/18/phillips-algorithms-deny-humans-health-care/

9.    Health care prediction algorithm biased against black patients, study finds - UChicago News, accessed on May 5, 2026, https://news.uchicago.edu/story/health-care-prediction-algorithm-biased-against-black-patients-study-finds

10.  Underdiagnosis bias of artificial intelligence algorithms applied to chest radiographs in under-served patient populations - PMC, accessed on May 5, 2026, https://pmc.ncbi.nlm.nih.gov/articles/PMC8674135/

11.  The Growing Use of Artificial Intelligence in Health Care and Implications for Disparities, accessed on May 5, 2026, https://www.kff.org/racial-equity-and-health-policy/the-growing-use-of-artificial-intelligence-in-health-care-and-implications-for-disparities/

12.  The Impact of AI on DEI in Laboratory Medicine - ASCLS, accessed on May 5, 2026, https://ascls.org/the-impact-of-ai-on-dei-in-laboratory-medicine/

13.  Study reveals why AI models that analyze medical images can be biased | MIT News, accessed on May 5, 2026, https://news.mit.edu/2024/study-reveals-why-ai-analyzed-medical-images-can-be-biased-0628

14.  Case Study 20: The $4 Billion AI Failure of IBM Watson for Oncology - Henrico Dolfing, accessed on May 5, 2026, https://www.henricodolfing.ch/en/case-study-20-the-4-billion-ai-failure-of-ibm-watson-for-oncology/

15.  What Happened to IBM Watson: The Rise, Fall, and Rebirth of AI's Most Hyped Technology, accessed on May 5, 2026, https://medium.com/@averageguymedianow/what-happened-to-ibm-watson-the-rise-fall-and-rebirth-of-ais-most-hyped-technology-28399bb39782

16.  M. D. Anderson Breaks With IBM Watson, Raising Questions About Artificial Intelligence in Oncology - PubMed, accessed on May 5, 2026, https://pubmed.ncbi.nlm.nih.gov/30053147/

17.  As AI Enters Surgery, Reports Mount of Complications and Mistakes - Modern Diplomacy, accessed on May 5, 2026, https://moderndiplomacy.eu/2026/02/14/as-ai-enters-surgery-reports-mount-of-complications-and-mistakes/

18.  Dangerous Medical Device Recall: The TruDi Navigation System Defect | 2/20/2026, accessed on May 5, 2026, https://www.forthepeople.com/blog/dangerous-medical-device-recall-trudi-navigation-system-defect/

19.  Experts sound alarm as reports of botched surgeries and misidentified body parts arise: 'Inconsistent, inaccurate, and unreliable' - The Cool Down, accessed on May 5, 2026, https://www.thecooldown.com/green-tech/ai-surgery-fda-regulatory-reports/

20.  Class 2 Device Recall TruDi Navigation System - accessdata.fda.gov, accessed on May 5, 2026, https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfres/res.cfm?id=216327

21.  Fresenius Dialysis Machine Lawsuit [2026 Investigation] - TorHoerman Law, accessed on May 5, 2026, https://www.torhoermanlaw.com/fresenius-dialysis-machine-lawsuit/

22.  St. Jude Defibrillator & Therapy Device Lawsuits | Levin Law, accessed on May 5, 2026, https://levinlaw.com/st-jude-ict-crd-lawsuit/

23.  Premature battery depletion with St. Jude Medical ICD and CRT-D devices. Indian Heart Rhythm Society guidelines for physicians - PMC, accessed on May 5, 2026, https://pmc.ncbi.nlm.nih.gov/articles/PMC5219839/

24.  A Case of Bromism Influenced by Use of Artificial Intelligence - ACP Journals, accessed on May 5, 2026, https://www.acpjournals.org/doi/pdf/10.7326/aimcc.2024.1260

25.  Journal warns against using ChatGPT for health after a man develops rare condition, accessed on May 5, 2026, https://www.htworld.co.uk/news/journal-warns-against-using-chatgpt-for-health-after-a-man-develops-rare-condition-digi25/

26.  A Case of Bromism Influenced by Use of Artificial Intelligence, accessed on May 5, 2026, https://www.acpjournals.org/doi/10.7326/aimcc.2024.1260

27.  Study: AI Generates 'Severe' Errors in 22% of Medical Cases - Burns & Wilcox, accessed on May 5, 2026, https://www.burnsandwilcox.com/insights/study-ai-generates-severe-errors-in-22-of-medical-cases/

28.  Medical errors in large language models revealed using 1000 synthetic clinical transcripts, accessed on May 5, 2026, https://www.medrxiv.org/content/10.64898/2026.03.23.26349082v1.full-text

29.  Medical errors in large language models revealed using 1000 synthetic clinical transcripts, accessed on May 5, 2026, https://www.researchgate.net/publication/403148544_Medical_errors_in_large_language_models_revealed_using_1000_synthetic_clinical_transcripts

30.  Who is Responsible When AI Makes a Medical Mistake? - Sermo, accessed on May 5, 2026, https://www.sermo.com/resources/who-is-responsible-when-ai-makes-a-medical-mistake/

31.  Judge orders UnitedHealth to hand over documents in AI coverage denial case, accessed on May 5, 2026, https://www.beckerspayer.com/legal/judge-orders-unitedhealth-to-hand-over-broad-discovery-in-ai-coverage-denial-case/

32.  Medicare advantage becoming a disadvantage with use of artificial ..., accessed on May 5, 2026, https://pmc.ncbi.nlm.nih.gov/articles/PMC12979811/

33.  Estate of Gene B. Lokken et al. v. UnitedHealth Group, Inc. et al., accessed on May 5, 2026, https://litigationtracker.law.georgetown.edu/litigation/estate-of-gene-b-lokken-the-et-al-v-unitedhealth-group-inc-et-al/

34.  UnitedHealth uses faulty AI to deny elderly patients medically necessary coverage, lawsuit claims - CBS News, accessed on May 5, 2026, https://www.cbsnews.com/news/unitedhealth-lawsuit-ai-deny-claims-medicare-advantage-health-insurance-denials/

35.  The AI Arms Race In Health Insurance Utilization Review: Promises ..., accessed on May 5, 2026, https://www.healthaffairs.org/doi/10.1377/hlthaff.2025.00897

36.  How to fix the $2.6 billion drug discovery problem - DrugPatentWatch, accessed on May 5, 2026, https://www.drugpatentwatch.com/blog/how-to-fix-the-2-6-billion-drug-discovery-problem/

37.  AI in Drug Discovery: The Illusion of Speed and the Reality of Clinical Failure - Infiuss Health, accessed on May 5, 2026, https://infiuss.com/insights/ai-in-drug-discovery-the-illusion-of-speed-and-the-reality-of-clinical-failure

38.  Artificial Intelligence in Small-Molecule Drug Discovery: A Critical Review of Methods, Applications, and Real-World Outcomes - PMC, accessed on May 5, 2026, https://pmc.ncbi.nlm.nih.gov/articles/PMC12472608/

39.  Clinician in the loop: a flawed solution for AI oversight | The BMJ, accessed on May 5, 2026, https://www.bmj.com/content/393/bmj-2025-089213

40.  What If AI Makes a Mistake in My Patient's Care—Am I Liable? - Residency Advisor, accessed on May 5, 2026, https://residencyadvisor.com/resources/medical-technology-advancements/what-if-ai-makes-a-mistake-in-my-patients-caream-i-liable

41.  Artificial intelligence in medicine and the negative outcome penalty paradox, accessed on May 5, 2026, https://jme.bmj.com/content/51/1/34

42.  Who's Liable When AI Gets It Wrong? A New Twist on Medical Malpractice | Western Summit, accessed on May 5, 2026, https://www.western-summit.com/blogs/when-ai-gets-it-wrong

43.  Is Watson for Oncology per se Unreasonably Dangerous?: Making A Case for How to Prove Products Liability Based on a Flawed Artificial Intelligence Design | American Journal of Law & Medicine - Cambridge University Press & Assessment, accessed on May 5, 2026, https://www.cambridge.org/core/journals/american-journal-of-law-and-medicine/article/is-watson-for-oncology-per-se-unreasonably-dangerous-making-a-case-for-how-to-prove-products-liability-based-on-a-flawed-artificial-intelligence-design/EA125D82A90E6D67E968D33FDE041659

44.  Automation Bias and Clinical Practice: FDA Makes Incremental Updates to Clinical Decision Support Software Guidance | Cooley LLP - JD Supra, accessed on May 5, 2026, https://www.jdsupra.com/legalnews/automation-bias-and-clinical-practice-3711489/

45.  IBM pitched its Watson supercomputer as a revolution in cancer care. It’s nowhere close https://www.statnews.com/2017/09/05/watson-ibm-cancer/

46.  As AI enters the operating room, reports arise of botched surgeries and misidentified body parts https://www.reuters.com/investigations/ai-enters-operating-room-reports-arise-botched-surgeries-misidentified-body-2026-02-09/

47.  AI in the operating room: Reports of botched surgeries, misidentified body parts rise, Jaimi Dowdell, Steve Stecklow, Chad Terhune and Rachael Levy https://www.staradvertiser.com/2026/02/09/breaking-news/ai-in-the-operating-room-reports-of-botched-surgeries-misidentified-body-parts-rise/

48.  Audrey Eichenberger, Stephen Thielke, Adam Van Buskirk. A Case of Bromism Influenced by Use of Artificial Intelligence. AIM Clinical Cases.2025;4:e241260. [Epub 5 August 2025]. doi:10.7326/aimcc.2024.1260

49.  Wu, D., Haredasht, F. N., Maharaj, S. K., Jain, P., Tran, J., Gwiazdon, M., ... & Goh, E. (2025). First, do NOHARM: towards clinically safe large language models. arXiv preprint arXiv:2512.01241.

50.  “ChatGPT is not your doctor, dietitian, or therapist”. Why we urgently need safety evaluation standards for generative AI in health, but who will take the lead? By Alex Ruani https://blogs.bmj.com/bmjleader/2025/09/19/chatgpt-is-not-your-doctor-dietitian-or-therapist-why-we-urgently-need-safety-evaluation-standards-for-generative-ai-in-health-but-who-will-take-the-lead/

51.  When Therapy Chatbots Gaslight: Who Holds AI Accountable for Clinical Harm? https://www.progressivetherapeutic.com.au/ai-therapy/chatbot-gaslight

52.  Sharma, S., Alaa, A.M. & Daneshjou, R. A longitudinal analysis of declining medical safety messaging in generative AI models. npj Digit. Med. 8, 592 (2025). https://doi.org/10.1038/s41746-025-01943-1

53.  AI has not improved the success rate of drug development, the first batch of AI-designed clinical trial results are disappointing https://news.gbimonthly.com/tw/invest/show.php?num=63151

54.  Haller S, Hedderich D, Federau C, et al. The Current Status of AI-accelerated MRI Techniques in Clinical Use. Radiology. 2025;317(2):e243819. doi:10.1148/radiol.243819

55.  D. Saleela, H. Rasheed, T. Joseph, P. S. Kurup, C. M S and A. R. Panicker, "Understanding MRI Drift: Impact on Imaging Quality and Advances in AI-Driven Correction for Clinical Reliability," 2025 Second International Conference on Cognitive Robotics and Intelligent Systems (ICC - ROBINS), Coimbatore, India, 2025, pp. 388-395, doi: 10.1109/ICC-ROBINS64345.2025.11086217,

56.   Lee B, Kramer P, Sandri S, et al. Early Recalls and Clinical Validation Gaps in Artificial Intelligence–Enabled Medical Devices. JAMA Health Forum. 2025;6(8):e253172. doi:10.1001/jamahealthforum.2025.3172

Leave a Reply