California patients are suing over an AI transcription service that processes sensitive doctor-patient conversations on external servers without adequate safeguards.

Plaintiffs claim a transcription tool used in medical settings processes confidential doctor-patient discussions offsite, raising privacy concerns

The lawsuit highlights risks of deploying AI tools in healthcare without clear data protection and processing transparency

Patients argue their protected health information is being handled by third parties in violation of medical privacy standards

The case underscores growing legal challenges around AI deployment in regulated industries like healthcare