The California Assembly Joint Hearing Health Committee and Privacy and Consumer Protection Committee convened on May 28, 2025, to address the growing intersection of artificial intelligence (AI) in healthcare and the pressing need for regulatory oversight. A key discussion point emerged around the use of AI in decision-making processes, particularly in approvals and denials of patient care.

Panelists emphasized a critical distinction: while AI can streamline approvals, human oversight is essential for denials. "If an AI thinks it's approved, then let it auto-approve it," one speaker noted, stressing the importance of human intervention when care is denied. This approach aims to balance efficiency with accountability, particularly as healthcare costs continue to rise.

The conversation also highlighted the necessity for a robust regulatory framework akin to that used in drug development. "It's the wild west in all three areas—administrative, clinical adjacent, and clinical applications," a panelist remarked, expressing concern over the lack of clear categorization in these domains. The need for defined administrative tasks, such as prior authorization and claims adjudication, was identified as a low-hanging fruit for optimization.

Moreover, the panelists warned of the significant risks associated with clinical applications of AI. "You get it right, and you can cure diseases; you get it wrong, and people die," one expert cautioned, underscoring the potential consequences of mismanaged AI in healthcare settings. The call for a structured framework to delineate administrative, clinically adjacent, and purely clinical tasks was echoed throughout the meeting.

As the discussion wrapped up, the panelists expressed optimism about ongoing research projects, like the Ami initiative, which aims to address biases and improve access to care, particularly in underserved areas. However, they reiterated the importance of ensuring that AI tools are not only effective but also equitable and safe for patient care.

The meeting concluded with a commitment to further explore these issues, as California navigates the complexities of integrating AI into its healthcare system while safeguarding patient welfare.