Google Modifies AI Health Tool Policy Amid Privacy Concerns
New York, Friday, 10 October 2025.
Google has revised its policy on a third-party AI health tool after employees raised data privacy concerns, emphasizing autonomy and ethical use of digital health technologies.
The Policy Shift at Google
On October 8, 2025, Google responded to employee concerns by updating its internal health policy regarding the use of Nayya, a third-party AI tool for health benefits management. The original policy had implicitly mandated the use of Nayya, causing unease among employees over data privacy and the mandatory sharing of health information with an external entity. Google’s clarification ensures that employees can opt out of this tool without affecting their benefits, highlighting a critical shift towards respecting employee autonomy and data privacy [1].
Nayya and the Role of AI in Healthcare
Nayya, a New York-based healthcare AI startup, has become a focal point in discussions about AI’s role in health management. Despite the backlash, the company maintains that it complies with HIPAA regulations to protect user data. The integration of AI tools like Nayya in workplace health benefits has become increasingly common, with companies like Meta, Microsoft, and Salesforce also adopting similar technologies to streamline health benefits for their employees [1].
Ethical Implications and Industry Trends
The incident at Google underscores the broader ethical considerations in deploying AI in healthcare, particularly regarding data privacy and consent. This development aligns with a growing trend in the healthcare industry to integrate digital solutions while maintaining ethical standards. Recent reports highlight that AI is set to play a pivotal role in enhancing healthcare delivery, with a focus on improving patient outcomes and operational efficiency [2][3].
Balancing Innovation and Privacy
As AI continues to transform healthcare, companies face the challenge of balancing technological innovation with privacy concerns. Google’s policy revision represents an effort to align with these ethical considerations, ensuring that employees have a choice in how their data is managed. This approach is crucial as the healthcare sector increasingly relies on digital tools for efficiency and improved service delivery [1][3].