In healthcare, AI mistakes can be a matter of life and death, according to registered nurse and Spencer Fane attorney Christine Chasse. AI is now used for documentation, triage, utilization review, patient communication, clinical decision support, and digital health products. While it can reduce administrative burden, reckless use creates operational, legal, and patient-safety risks. Many organizations use AI, but fewer have defined responsibility for evaluating, validating, monitoring, and intervening, creating a governance gap that is costing organizations billions. In fiscal year 2025, the DOJ reported more than $6.8 billion in False Claims Act recoveries, mostly attributed to healthcare. One headline matter involved Affiliates of Kaiser Permanente, which agreed to pay $556 million to resolve allegations involving unsupported diagnosis coding tied to Medicare Advantage reimbursement. Automated processes can create liability when organizations cannot demonstrate traceability and meaningful review. Transparency, disclosure, and clear role boundaries are foundations of AI governance. Another risk is erosion of patient trust when AI tools appear more authoritative than they are, such as a tool that seems to present itself as a licensed clinician.