A new report from the Healthcare Leadership Council (HLC) and management consulting and technology firm ZS highlights the urgent need for a unified federal framework to guide the responsible use of artificial intelligence in healthcare. The report warns that the current patchwork of inconsistent and evolving federal and state regulations is hindering the widespread adoption of AI technologies, despite their transformative potential for improving patient outcomes, streamlining operations, and reducing costs. The study identifies significant barriers stemming from regulatory fragmentation, including unclear guidance on data privacy, algorithmic transparency, and accountability for AI-driven clinical decisions. These inconsistencies create uncertainty for healthcare providers, technology developers, and regulators alike, slowing innovation and increasing compliance burdens. To address these challenges, the report outlines nine practical policy recommendations aimed at fostering a cohesive and scalable approach to AI governance. Key proposals include establishing a centralized federal oversight body to coordinate AI regulation across agencies, creating standardized evaluation criteria for AI tools used in clinical settings, and promoting transparency in how algorithms are developed and validated. The report also calls for updated data-sharing policies that balance patient privacy with the need for high-quality, diverse datasets to train accurate and equitable AI models. It emphasizes the importance of ensuring that AI systems do not perpetuate or exacerbate existing health disparities. Healthcare leaders stress that without a clear, consistent regulatory environment, innovation will remain stifled, and patients may miss out on life-saving advancements. The HLC and ZS argue that a proactive, collaborative framework can unlock AI’s full potential—improving diagnostics, personalizing treatment plans, and enhancing care coordination—while maintaining patient safety and trust. The findings come at a critical moment as AI adoption accelerates across hospitals, pharmaceutical companies, and digital health startups. With federal agencies like the FDA and HHS actively shaping AI policies, the report urges policymakers to act swiftly to build a foundation that supports innovation without compromising patient care.