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Attorney General Ken Paxton Reaches Settlement in First-of-its-Kind Healthcare Generative AI Investigation
AUSTIN – Texas Attorney General Ken Paxton secured a first-of-its-kind settlement with a Dallas-based artificial intelligence healthcare technology company called Pieces Technologies. The agreement resolves allegations that the company deployed its products at several Texas hospitals after making a series of false and misleading statements about the accuracy and safety of its products.
At least four major Texas hospitals have been providing their patients’ healthcare data in real time to Pieces so that its generative AI product can “summarize” patients’ condition and treatment for hospital staff. An investigation conducted by the Texas Attorney General found that Pieces made deceptive claims about the accuracy of its healthcare AI products, putting the public interest at risk. Pieces developed a series of metrics to claim that its healthcare AI products were “highly accurate,” including advertising and marketing the accuracy of its products and services by claiming an error rate or “severe hallucination rate” of “<1 per 100,000.”
Attorney General Paxton’s investigation found that these metrics were likely inaccurate and may have deceived hospitals about the accuracy and safety of the company’s products.
As part of the settlement, Pieces has agreed to accurately disclose the extent of its products’ accuracy. Pieces has also agreed to ensure that the hospital staff using its generative AI products to treat patients understand the extent to which they should or should not rely on its products.
“AI companies offering products used in high-risk settings owe it to the public and to their clients to be transparent about their risks, limitations, and appropriate use. Anything short of that is irresponsible and unnecessarily puts Texans’ safety at risk,” said Attorney General Paxton. “Hospitals and other healthcare entities must consider whether AI products are appropriate and train their employees accordingly.”
To read the agreement, click here.
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