Doctors are using AI software that does not meet minimum standards to record and transcribe patient meetings, according to a Sky News investigation.
NHS bosses have demanded GPs and hospitals stop using artificial intelligence software that could breach data protection rules and put patients at risk.
A warning sent out by NHS England this month came just weeks after the same body wrote to doctors about the benefits of using AI for notetaking – to allow them more time to concentrate on patients – using software known as Ambient Voice Technology, or “AVT”.
Health Secretary Wes Streeting will next week put AI at the heart of the reform plan to save the NHS in the 10-year plan for the health service in England.
But there is growing controversy around software that records, transcribes and summarises patient conversations using AI.
In April, NHS England wrote to doctors to sell the benefits of AVT and set out minimum national standards.
However, in a letter seen by Sky News, NHS bosses wrote to doctors to warn that unapproved software that breached minimum standards could harm patients.
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The 9 June letter, from the national chief clinical information officer of NHS England, said: “We are now aware of a number of AVT solutions which, despite being non-compliant … are still being widely used in clinical practice.
“Several AVT suppliers are approaching NHS organisations … many of these vendors have not complied with basic NHS governance standards.
“Proceeding with non-compliant solutions risks clinical safety, data protection breaches, financial exposure, and fragmentation of broader NHS digital strategy.”
Sky News has previously revealed the danger of AI “hallucinations”, where the technology makes up answers then lies about them, which could prove dangerous in a healthcare setting.
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Is ChatGPT reliable despite its ‘hallucinations’?
NHS England sets minimum standards but does not tell NHS trusts and healthcare providers which software providers to use.
Sky News can now reveal there is growing pressure on NHS England and similar bodies to be more proactive.
Dr David Wrigley, deputy chair of the British Medical Association’s GP committee, said: “Undoubtedly, as a GP myself and my 35,000 colleagues, we’ve got responsibilities here – but in such a rapidly developing market when we haven’t got the technical knowledge to look into this.
“We need that help and support from those who can check that the products are safe, check they’re secure, that they’re suitable for use in the consulting room, and NHS England should do that and help and support us.”
Dr Wrigley continued: “We’re absolutely in favour of tech and in favour of taking that forward to help NHS patients, help my colleagues in their surgeries.
“But it’s got to be done in a safe and secure way because otherwise we could have a free for all – and then data could be lost, it could be leaking out, and that just isn’t acceptable.
“So we are not dinosaurs, we’re very pro-AI, but it has to be a safe, secure way.”
Image: The head of the NHS Confederation says the letter is ‘a really significant moment’
The spectre of dozens of little-known but ambitious AI companies lobbying hospitals and surgeries to get their listening products installed worries some healthcare professionals.
There are huge profits to be made in this technological arms race, but the question being asked is whether hundreds of different NHS organisations can really be expected to sift out the sharks.
Matthew Taylor, chief executive of the NHS Confederation, said the letter was “a really significant moment”.
He said it was right for the NHS to experiment, but that it needed to be clearer what technology does and does not work safely.
“My own view is that the government should help in terms of the procurement decisions that trusts make and should advise on which AI systems – as we do with other forms of technology that we use in medicine – which ones are safe,” Mr Taylor said.
“We’ll need [government] to do a bit more to guide the NHS in the best way to use this.”
When pressed whether in the short term that actually makes it sound like it could be quite dangerous, Mr Taylor replied: “What you’ve seen with ambient voice technology is that kind of ‘let a thousand flowers bloom’ approach has got its limits.”
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Godfather of AI warns of its dangers
Earlier this year, the health secretary appeared to suggest unapproved technology was being used – but celebrated it as a sign doctors were enthusiastic for change.
Mr Streeting said: “I’ve heard anecdotally down the pub, genuinely down the pub, that some clinicians are getting ahead of the game and are already using ambient AI to kind of record notes and things, even where their practice or their trust haven’t yet caught up with them.
“Now, lots of issues there – not encouraging it – but it does tell me that contrary to this, ‘Oh, people don’t want to change, staff are very happy and they are really resistant to change’, it’s the opposite. People are crying out for this stuff.”
Image: GP Anil Mehta says the AI software helps cut paperwork and patients are ‘extremely reassured’
Doctors who use AI that complies with national standards already say there are big benefits.
Anil Mehta, a doctor in the health secretary’s Ilford constituency, told Sky News he backed his MP’s drive for more AI technology in healthcare.
“I spend 30% of my week doing paperwork,” he said. “So I think once I’ve explained all of those features of what we’re doing, patients are extremely reassured. And I haven’t faced anybody that’s not wanted to have me do this.
He added: “(I) think that consultation with your doctor is extremely confidential, so that’s not changed at all.
“That remains confidential – so whether it’s a vulnerable adult, a vulnerable child, teenager, young child with a parent, I think the concept of that confidentiality remains.”
An NHS spokesperson said: “Ambient Voice Technology has the potential to transform care and improve efficiency and in April, the NHS issued guidance to support its use in a safe and secure way.
“We are working with NHS organisations and suppliers to ensure that all Ambient Voice Technology products used across the health service continue to be compliant with NHS standards on clinical safety and data security.”
Faruk Fatih Özer was found dead in his prison cell on Nov. 1. The former CEO of now-defunct crypto exchange Thodex was serving an 11,000-year sentence for running one of the largest crypto scams in history.
His death marks the latest turn in the Thodex saga, with ripple effects so significant they altered Turkish cryptocurrency laws.
The initial details of Özer’s death point to suicide, but the investigation is still ongoing. It has once more brought Thodex back into the spotlight.
Here’s a look back at Özer’s story, how the crypto exchange impacted Turkish law and how it may have contributed to the country’s increased crypto adoption.
$2-billion Thodex scam sees raids, arrest and CEO out on the lam
On April 21, 2021, Thodex cryptocurrency exchange suddenly shut down trading and withdrawals. The initial announcement read that this could continue for four to five days. As Cointelegraph Turkey reported at the time, the exchange claimed that this was to improve its operations with the help of “world-renowned banks and funding companies.”
But local media reported that Özer had fled to Thailand with over $2 billion in funds as part of an exit scam. There were also reports that police had raided the exchange’s offices in Istanbul.
Istanbul’s chief prosecutor’s office corroborated the reports the following day. It announced a probe into Thodex and said police had arrested 62 people allegedly involved in the scam. Özer denied the accusations, claiming his trip abroad was to meet foreign investors.
As of April 30, 2021, a Turkish court decided to jail six suspects, including family members of the missing CEO and senior company employees, pending trial. Interpol also issued a red notice for Özer.
“When he is caught with the red notice, we have extradition agreements with a large part of these countries. God willing he will be caught and he will be returned,” said Interior Minister Süleyman Soylu.
Özer managed to evade capture for over a year. Albanian authorities eventually detained him on Aug. 30, 2022. He attempted to appeal extradition in court, but the decision was upheld, and Özer was in Turkish custody by April 30, 2023, two years after the scandal began.
Özer was detained by Turkish authorities after being extradited from Albania. Source: AA
The case against Özer was swift. In July 2023, just three months after arriving in Turkey, he was sentenced to seven months and 15 days in prison for failing to submit certain documents requested by the Tax Inspection Board during the trial.
In court, Özer claimed that he and his family were facing false accusations. He said, “I am smart enough to manage all institutions in the world. This is evident from the company I founded at the age of 22. If I were to establish a criminal organization, I would not act so amateurishly. … It is clear that the suspects in the file have been victims for more than 2 years.”
Özer was serving his sentence at the Tekirdağ No. 1 F-Type High Security Closed Penal Institution when he died. F-Type prisons are high-security institutions reserved for political prisoners, members of organized crime syndicates and other armed groups serving an aggravated life sentence.
Human rights advocates have repeatedly raised concerns about the conditions at F-Type prisons. In 2007, Amnesty International noted “harsh and arbitrary” disciplinary treatments, as well as isolation.
Turkey changes its laws to protect investors
The Thomex scandal and its ensuing fallout were so significant that they drove the Turkish government to change its policies toward cryptocurrencies.
Immediately following news of Özer fleeing the country, the Central Bank of the Republic of Turkey banned crypto payments and prohibited payment providers from offering fiat on-ramps for crypto exchanges. The official notice outlawed “any direct or indirect usage of crypto assets in payment services and electronic money issuance.” Notably, the ban excluded banks, meaning that users can still deposit lira onto crypto exchange accounts using bank transfers.
The ban aimed to ensure financial stability, while other agencies like the Capital Markets Board (CMB) and the Financial Crimes Investigation Board (MASAK) moved to legitimize trading activities. In May 2021, MASAK amended money laundering and terrorism financing laws to include provisions for cryptocurrency.
By 2024, the “Law on Amendments to the Capital Markets Law” came into effect. This built on the initial changes in 2021, which included extensive consumer protection measures in addition to provisions on licensing and reporting.
These new measures, which also aimed to move Turkey off the Financial Action Task Force’s “gray list” of countries with inadequate Anti-Money Laundering measures, have in turn helped spur the local crypto industry.
Chainalysis’ “2025 Geography of Crypto Report” found that Turkey led the Middle East and North Africa in value received in crypto. Trading activity also spiked last year.
In the long term, the Thodex scandal may have led to increased crypto adoption in the country, but only after it rocked the Turkish crypto industry and left many investors out to dry. It also resulted in the imprisonment and death of its orchestrator and CEO.
A New York jury was unable to reach a verdict in the case of Anton and James Peraire-Bueno, the MIT-educated brothers accused of fraud and money laundering related to a 2023 exploit of the Ethereum blockchain that resulted in the removal of $25 million in digital assets.
In a Friday ruling, US District Judge Jessica Clarke declared a mistrial in the case after jurors failed to agree on whether to convict or acquit the brothers, Inner City Press reported.
The decision came after a three-week trial in Manhattan federal court, resulting in differing theories from prosecutors and the defense regarding the Peraire-Buenos’ alleged actions involving maximal extractable value (MEV) bots.
A MEV attack occurs when traders or validators exploit transaction ordering on a blockchain for profit. Using automated MEV bots, they front-run or sandwich other trades by paying higher fees for priority.
In the brothers’ case, they allegedly used MEV bots to “trick” users into trades. The exploit, though planned by the two for months, reportedly took just 12 seconds to net the pair $25 million.
In closing arguments to the jury this week, prosecutors argued that the brothers “tricked” and “defrauded” users by engaging in a “bait and switch” scheme, allowing them to extract about $25 million in crypto. They cited evidence suggesting that the two plotted their moves for months and researched potential consequences of their actions.
“Ladies and gentlemen, bait and switch is not a trading strategy,” said prosecutors on Tuesday, according to Inner City Press. “It is fraud. It is cheating. It is rigging the system. They pretended to be a legitimate MEV-Boost validator.”
In contrast, defense lawyers for the Peraire-Buenos pushed back against the US government’s theory of the two pretending to be “honest validators” to extract the funds, though the court ultimately allowed the argument to be presented to the jury.
“This is like stealing a base in baseball,” said the defense team on Tuesday. “If there’s no fraud, there’s no conspiracy, there’s no money laundering.”
What’s at stake for the crypto industry following the verdict?
Though the case ended without a verdict, the mistrial has left the crypto industry divided, with many observers debating the legal and technical implications of treating MEV-related activity as a potential criminal offense. Crypto advocacy organization Coin Center filed an amicus brief on Monday after opposition from prosecutors.
“I don’t think what’s in the indictment constitutes wire fraud,” said Carl Volz, a partner at law firm Gunnercooke, in a Monday op-ed for DLNews. “A jury could conclude differently, but if it does, it’ll be because the brothers googled stupidly and talked too much, for too long, with the wrong people.”
The shutdown of the US government entered its 38th day on Friday, with the Senate set to vote on a funding bill that could temporarily restore operations.
According to the US Senate’s calendar of business on Friday, the chamber will consider a House of Representatives continuing resolution to fund the government. It’s unclear whether the bill will cross the 60-vote threshold needed to pass in the Senate after numerous failed attempts in the previous weeks.
Amid the shutdown, Republican and Democratic lawmakers have reportedly continued discussions on the digital asset market structure bill. The legislation, passed as the CLARITY Act in the House in July and referred to as the Responsible Financial Innovation Act in the Senate, is expected to provide a comprehensive regulatory framework for cryptocurrencies in the US.
Although members of Congress have continued to receive paychecks during the shutdown — unlike many agencies, where staff have been furloughed and others are working without pay — any legislation, including that related to crypto, seems to have taken a backseat to addressing the shutdown.
At the time of publication, it was unclear how much support Republicans may have gained from Democrats, who have held the line in demanding the extension of healthcare subsidies and reversing cuts from a July funding bill.
Is the Republicans’ timeline for the crypto bill still attainable?
Wyoming Senator Cynthia Lummis, one of the market structure bill’s most prominent advocates in Congress, said in August that Republicans planned to have the legislation through the Senate Banking Committee by the end of September, the Senate Agriculture Committee in October and signed into law by 2026.
Though reports suggested lawmakers on each committee were discussing terms for the bill, the timeline seemed less likely amid a government shutdown and the holidays approaching.