Introducing – The AI Scribe

Mechanical hand that is writing a note

Image created by CoPilot

There are many misconceptions about ambient documentation, also known as the AI Scribe. One common misunderstanding is that the AI automatically “stops listening” when the conversation shifts to non-medical topics, like a patient talking about their kids or a recent Disney trip. In reality, the AI hears the entire conversation. It is designed to prioritize medically relevant information, but it does not always perfectly ignore casual or social discussion. This is actually one way AI hallucinations can occur.

For example, if a patient says, “We’ve been exhausted with the kids lately,” the AI might interpret that as clinical information and document it as, “patient reports fatigue and increased stress at home.” While that may sound reasonable, it was never intended as a medical symptom. This is a classic example of an AI hallucination—but we’ll explore that more in a moment. First, let’s take a closer look at what an AI scribe actually is.

What AI Scribing Is

Ambient documentation (AI Scribe) uses speech recognition, NLP (Natural Language Processing), Clinical Context Modeling and EHR Integration to generate “draft” clinical notes from real-time encounters. That said, AI is a documentation tool, not a rendering provider. The billing provider is still responsible to ensure content accuracy, medical necessity, and the final note attestation.

Common Workflow

Here is a standard 6-step workflow you can expect to see:

1: Patient Intake & Consent

  • Patient informed of AI-assisted documentation
  • Verbal or written consent obtained (see section below)

2: Ambient Capture

  • Audio recorded during visit (or real-time transcription)
  • Some tools do NOT store audio (important compliance distinction)

3: AI Draft Generation

  • AI generates:
    • HPI
    • ROS
    • Exam (often templated)
    • MDM narrative

4: Provider Review & Editing

  • Provider must:
    • Review entire note
    • Edit for accuracy
    • Remove hallucinations or fabricated elements
    • Ensure medical necessity is supported

5: Provider Attestation

Typical compliant statement:

“I personally performed the services described and have reviewed and verified that this documentation accurately reflects the encounter.”

6: Finalization in EHR

  • Note locked
  • Audit trail preserved

This workflow may seem like a great time-saver and a benefit for both providers and patients. However, it also comes with important risks—similar to those we’ve seen with copy/paste, copy-forward, templates, and cloned notes. These risks arise when documentation is not carefully reviewed and edited to reflect the specific patient details of the individual encounter that occurred that day.

Patient Consent

At this time, Medicare doesn’t have a specific AI consent rule, but we can use:

 HIPAA + State Privacy Law + Ethical Standards

Best practice:

  • Explicit verbal consent at each visit OR blanket consent with opt-out
  • Document in note:
    • “Patient consented to AI-assisted documentation during this visit.”

Key consent elements:

  • Recording/transcription disclosure
  • Purpose: documentation only
  • Data handling/storage
  • Right to decline

Texas-Specific Considerations

Texas privacy law generally aligns with HIPAA, but:

  • Be cautious if audio recordings are stored
  • Some organizations require two-party consent acknowledgment for recordings

PHI Protection

We can’t talk about AI scribes without addressing the importance of protecting patient information, or Protected Health Information (PHI). Most ambient documentation vendors operate under a Business Associate Agreement (BAA), which means they are required to follow HIPAA privacy and security rules—just like any other documentation tool. In other words, the same expectations that apply to traditional documentation also apply to AI-generated notes.

When using an AI scribe, it’s important to understand how patient information is handled. Key questions to consider include: (1) Is the audio from the visit being stored? (2) Is the data being used to train the AI model? And if so, (3) is that data properly de-identified before it is reused?

There are also some important red flags to watch for.

High-Risk Red Flags:

  • “Free AI scribe” tools without BAA
  • Data used to train external models without disclosure
  • No clear retention/deletion policy
  • Copy-forward or hallucinated content introduced into note

AI hallucinations are clinically plausible but incorrect details generated by AI that were never obtained, observed, or performed during the visit. We’ll cover this in more detail in the next article, including how AI hallucinations can differ from real clinical documentation in the medical record.

What do the payers think about AI Scribing?

Essentially, the AI Scribe is invisible to the payers. The most import thing being that the documentation reflects what actually occurred during the patient encounter for each date of service reported on the claim.

Top Compliance Risks

Documentation Integrity Risks

  • AI hallucinations
  • Auto-generated exam/ROS not performed
  • Inflated MDM

Attribution Risks

  • Provider not truly reviewing note
  • Over-reliance on AI

Privacy Risks

  • No BAA
  • Improper data storage
  • Patient unaware of recording

Audit Analytics Risks

  • Identical note structures
  • Metadata showing rapid sign-off
  • Inconsistent patient complexity vs coding

Final Thoughts

AI documentation is not a new compliance problem—it’s the next generation of the same documentation integrity issues we’ve been managing for years, now amplified by speed, scale, and sophistication.

AI can help providers document—but it doesn’t replace their clinical judgment or their documentation responsibility.

Remember, providers must:

  • Review everything
  • Correct errors
  • Ensure medical necessity
  • Only bill for what they actually did

Resources

Texas Medical Liability Trust