Ethical AI in Healthcare: Balancing Personalisation with Privacy

By Kalyan Kolachala, Managing Director, SAI Group

The amalgamation between data, algorithms and medicine has positioned artificial intelligence (AI) as a game-changer in healthcare. With its ability to detect early signs of disease, recommend precise treatments, as well as tailor therapies to individual needs, AI is redefining clinical decision-making. This, in turn, has made hospitals and research institutions embrace AI to drive better patient outcomes and enhance the efficiency of healthcare delivery.

Nevertheless, as precision increases and algorithms gain access to unprecedented volumes of patient data, a new ethical dilemma emerges: how to balance the promise of personalisation with the imperative to protect privacy? The challenge lies in advancing predictive and preventive care without losing sight of ethical foundations. Trust, informed consent, together with patient autonomy, must remain central to this progress.

Unlocking New Frontiers in Patient-Centric Medicine
With advancements in AI, precision medicine has taken a major leap forward. Machine learning algorithms can process complex medical data at scale. They can significantly identify subtle patterns, recommend personalised therapies and enhance operational tasks. Whether in radiology diagnostics or clinical workflow automation, AI is delivering measurable gains in patient care and system efficiency.

However, these systems thrive on data: genomic profiles, diagnostic images, lifestyle metrics, and even real-time physiological signals. Every personalised recommendation depends on patient information that is intimate, sensitive as well as deeply personal. As the boundaries between data utility and privacy blur, ethical and regulatory frameworks must evolve to ensure that innovation remains responsible.

Establishing Ethical Foundations for AI in Medicine
For AI to genuinely enhance healthcare, it must be intelligent, fair, explainable, and accountable. Ethical AI depends on transparency in algorithms—clarity about how decisions are made and what data underpins them. In simple terms, patients and clinicians must be able to understand the reasoning behind AI-generated recommendations.

Bias in algorithms poses another critical ethical challenge. When training data does not encompass diversity or reveal systemic disparities, AI systems can inadvertently reinforce inequalities in healthcare delivery. Guaranteeing fairness requires continuous auditing, diverse datasets, and independent oversight mechanisms capable of identifying and correcting algorithmic bias.

Accountability must also be clearly defined. When AI systems assist in medical decisions or yield harmful outcomes, who is responsible? Developers, healthcare institutions, or regulators? Clear governance frameworks are essential to prevent technology from sidestepping ethical responsibilities. They ensure that patient rights are upheld throughout the entire AI lifecycle.

Privacy and Regulatory Measures in India
Addressing the aforementioned ethical challenges demands strong regulatory frameworks. In India, the Digital Personal Data Protection Act (DPDPA), governs the collection, processing, and protection of personal data. In addition, the regulation is also responsible for granting individuals rights such as access, correction, and erasure, while obligating organisations to secure sensitive information.
Complementing this, the Medical Device Rules (2017), along with their 2020 amendment, expanded the definition of medical devices. They included software and digital applications used in clinical settings so as to ensure that AI tools meet safety and quality standards. The Indian Council of Medical Research (ICMR) further provides “Ethical Guidelines for Application of Artificial Intelligence in Biomedical Research and Healthcare”, emphasising transparency, informed consent, and accountability during AI development and deployment.
Collectively, these approaches establish a framework that aligns ethical imperatives with operational and legal standards. This further makes sure that AI’s promise does not come at the cost of patient trust or privacy.

Building Trust Through Responsible Innovation
Trust is the key to healthcare, and AI’s success depends on it. Patients must believe that their data will be used responsibly, securely, and for their sake. This requires clear communication about how AI systems function, how decisions are made plus what safeguards exist.

Organisations must embed ethical considerations throughout the AI lifecycle, from data collection and algorithm design to deployment and real-world validation. Bias testing, data anonymisation, and transparent documentation are not regulatory hurdles but essential practices that maintain credibility in AI-driven care. Multi-disciplinary collaboration among technologists, clinicians, policymakers, and ethicists further strengthens governance and fosters public confidence.

All in all, the success of AI in healthcare will be measured not only by technological breakthroughs, but also by the ethical standards it upholds. A system rooted in fairness, transparency, and accountability holds the potential to deliver care that is both innovative and humane. With the Indian AI in Healthcare Market projected to reach approximately USD 35 billion by 2030, the groundwork for scale and impact is firmly in place. Continued vigilance and responsible governance will determine how effectively this potential is realised.

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