Over the past decade, artificial intelligence (AI) has gained significant momentum in healthcare, promising to transform the medical industry and the way health providers interact with their patients. Within the healthcare sector, interoperable machine learning (ML) tools and AI have the real potential to enhance and save lives. This report outlines its potential, ethical considerations, existing laws and the international response to AI in healthcare. It maintains the final decision on patient care should always be made by a human. 

The report maintains that the application of AI in healthcare must only occur with appropriate ethical oversight. This is particularly important in relation to patient privacy, as well as concerns about bias and discrimination that can arise from data provided to machine learning systems that have trained on biased datasets. Such biases can lead to misdiagnosis, especially among underrepresented groups, making ethical oversight vital. 

While Australia is committed to maximising the benefits of AI, progress in actualising this commitment has been limited. The Australian Government should use a risk-based framework to ensure the safe use of AI and prevent potential harms. This includes assessing the obligations of AI developers and deployers based on the level of risk associated with its use, deployment or development. The government should consider making certain obligations mandatory, following the example set by comparable regions, such as the European Union.