A debate over AI Note-Taking in healthcare is growing in Australia after a Melbourne psychiatrist reportedly required new patients to consent to AI transcription tools during therapy sessions or seek treatment elsewhere.
The controversy has triggered wider concerns about patient privacy, medical ethics and the increasing use of artificial intelligence in sensitive healthcare environments.
According to reports, psychiatrist Dr Hemlata Ranga informed prospective patients through a registration form that AI software could be used to assist with note-taking, clinical letters and other medical documentation during appointments.
Patients unwilling to consent were reportedly advised to seek referral to another provider.
AI Note-Taking Expanding in Healthcare
AI-powered transcription tools are becoming increasingly common across the medical sector as clinics look for ways to reduce administrative workloads.
The Royal Australian College of General Practitioners says the use of AI scribes among doctors has doubled over the past year, with many healthcare providers using the technology to generate medical notes and reports more efficiently.
Supporters argue the tools can save time, reduce paperwork and allow doctors to focus more on patients during appointments.
However, critics warn that mental health settings involve deeply personal conversations that require stronger safeguards than ordinary administrative systems.
Privacy and Consent Questions Emerging
One patient quoted in the report said they felt uncomfortable with the mandatory use of AI during psychiatric consultations.
The patient described concerns about both privacy and the pressure placed on vulnerable individuals seeking mental health care. They also noted that changing psychiatrists is not always easy due to long waiting lists and limited specialist availability.
Digital rights advocates say these concerns highlight a growing imbalance between patients and healthcare providers when AI tools are introduced without meaningful alternatives.
Tom Sulston from Digital Rights Watch warned that patients may begin censoring themselves during sessions if they fear sensitive conversations are being processed through artificial intelligence systems.
Experts also raised concerns about potential inaccuracies in AI-generated transcripts, especially for patients from diverse cultural, linguistic or demographic backgrounds.
AI Note-Taking and Data Security Risks
Questions around data security are also central to the debate.
Medical information is considered among the most sensitive forms of personal data, and privacy experts fear breaches or misuse could have serious consequences.
Heidi AI, one of the AI scribe platforms mentioned in the report, has reportedly been used in more than 115 million sessions over the past 18 months. The company says patient data is processed locally, not sold to third parties, and not used to train AI systems.
Still, experts argue no digital system is completely risk-free.
Critics also point out that current regulations may not fully cover AI transcription tools because they do not directly diagnose patients, placing them outside some medical device oversight frameworks.
Growing Calls for Regulation
The situation is now fueling broader discussions about AI governance in healthcare.
Advocates are calling for stronger legal protections to ensure patients can refuse AI systems without losing access to treatment.
Some experts believe healthcare providers should always offer non-AI alternatives, especially in mental health settings where trust and confidentiality are critical.
Others argue that artificial intelligence should remain a support tool rather than becoming mandatory within patient care.
Why This Matters
The growing use of AI in healthcare is changing how medical services operate, but it is also creating new ethical and privacy challenges. Mental health care, in particular, involves highly sensitive information that many believe requires stronger protections.
What Happens Next
Debates around AI Note-Taking are expected to intensify as more healthcare providers adopt artificial intelligence tools. Regulators and privacy advocates may face increasing pressure to establish clearer rules around consent, data security and patient rights.
