Chapter 17 Part V — Artificial Intelligence and Emerging Informatics
Artificial Intelligence, Machine Learning, NLP, and Generative AI
What modern AI systems actually do, how generative models differ from traditional predictive models, and where their capabilities and limitations matter in nursing informatics.
Chapter Orientation
Artificial intelligence is not one technology. A sepsis-risk model, speech-recognition system, image classifier, rules engine, and large language model may all be called AI while operating through very different mechanisms. Informatics professionals need enough conceptual precision to avoid both hype and dismissal.
This chapter focuses on the mechanisms that matter for practice: training data, prediction, language models, embeddings, retrieval, multimodality, agents, evaluation, and failure modes. The next chapter turns from “how AI works” to “how healthcare should implement and govern it.”
Learning Objectives
By the end of this chapter, you should be able to:
- Distinguish rules-based systems, machine learning, deep learning, NLP, and generative AI.
- Explain supervised learning, features, labels, training, validation, and inference.
- Interpret core performance concepts including sensitivity, specificity, precision, calibration, and discrimination.
- Explain tokens, context, embeddings, transformers, and probabilistic generation at a practical level.
- Describe retrieval-augmented generation, multimodal AI, and agentic tool use.
- Identify major AI failure modes including hallucination, bias, drift, automation bias, and prompt injection.
Lesson 17.1 — "AI" Describes a Family of Methods
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Rules-based systems execute explicit logic written by humans. “If potassium is below X, display alert Y” is automation and may be called AI in broad marketing language, but the decision logic is directly specified rather than learned from data.
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Machine learning learns statistical patterns from examples. Instead of defining every rule, developers fit a model so inputs are associated with an output such as risk, category, probability, or numerical estimate.
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Deep learning uses multi-layer neural networks to learn complex representations. It has enabled major advances in imaging, speech, language, and other high-dimensional data, but usually requires substantial data and computation.
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Natural language processing covers computational methods for human language. NLP includes older rule-based and statistical methods as well as modern transformer-based language models.
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Generative AI produces new content rather than only assigning a score or category. It can generate text, code, images, audio, summaries, structured data, or combinations. Generative capability creates new workflow possibilities and new risks because the output can be plausible without being true.
Figure
Figure 17.1 — A Practical AI Family Tree
Production brief: AI as umbrella → rules/knowledge-based systems and machine learning → deep learning → transformer models → generative language/multimodal models. Show NLP overlapping rather than strictly nested.
Alt text: Conceptual map distinguishing rules-based AI, machine learning, deep learning, NLP, and generative AI.
NI-BC Connection: Data Management and Healthcare Technology — NLP, emerging technologies, decision support.
Retrieval Checkpoint
Retrieval Checkpoint
- How does rules-based logic differ from machine learning?
- What does a machine-learning model learn from data?
- Why is NLP broader than large language models?
- What new risk appears when AI generates content rather than only scores it?
Lesson 17.2 — Predictive Machine Learning Learns a Mapping From Inputs to Outputs
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Supervised learning uses labeled examples. Inputs such as age, vital signs, diagnoses, and laboratory values are paired with an outcome label, such as readmission or deterioration. The model learns patterns that help estimate the label for new cases.
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Features are the input variables available to the model. Feature engineering can encode clinical knowledge, but features can also become proxies for race, socioeconomic conditions, healthcare access, or institutional practice.
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Training fits the model; validation estimates whether it generalizes. Evaluation data should be separated from training so performance is not measured only on examples the model already optimized against.
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Overfitting occurs when a model learns idiosyncrasies of its training data rather than stable patterns. A model may appear excellent internally and perform poorly at another hospital or after workflows change.
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Inference is the use of a trained model on new input. Deployment adds new variables: missing data, latency, workflow timing, user response, and differences between the development population and actual patients.
Clinical Example
Clinical Example — A Readmission Model Learns the Hospital
A model performs well because one feature indirectly identifies a specialty clinic whose patients receive intensive follow-up. At a new hospital, that clinic code does not exist and performance falls. The model learned a local workflow signal rather than a broadly stable clinical relationship.
NI-BC Connection: Data Management and Healthcare Technology — analytics, predictive systems, emerging technologies.
Retrieval Checkpoint
Retrieval Checkpoint
- What is a label in supervised learning?
- Why can a feature encode institutional practice rather than patient biology?
- What does overfitting mean?
- What additional risks appear at inference/deployment time?
Lesson 17.3 — Model Performance Depends on the Decision, Not One Accuracy Number
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Sensitivity measures how often true positive cases are detected. High sensitivity can be important when missing a dangerous condition carries substantial cost, but increasing sensitivity may increase false positives.
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Specificity measures how often true negative cases are correctly excluded. High specificity reduces false positives but may miss more true cases depending on threshold.
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Precision asks how many positive predictions are actually positive. Precision depends partly on prevalence. Even a strong model can generate many false alarms when the event is rare.
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Discrimination describes how well a model separates higher-risk from lower-risk cases. Measures such as area under the ROC curve summarize ranking ability but do not tell whether predicted probabilities are accurate.
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Calibration asks whether predicted probabilities correspond to observed frequency. If patients assigned 20% risk experience the outcome about 20% of the time, the model is well calibrated in that range.
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Subgroup performance matters. Overall metrics can conceal poor performance for specific ages, races, sexes, languages, conditions, care settings, or other populations. The relevant groups depend on intended use and plausible harm.
Informatics in Practice
Informatics in Practice — Ask "At What Threshold?"
A claim that a model has “90% sensitivity” is incomplete without the operating threshold, population, outcome definition, and time horizon. Model metrics do not float independently of use context.
NI-BC Connection: Data Management and Healthcare Technology — analytics, decision support, evaluation.
Retrieval Checkpoint
Retrieval Checkpoint
- What tradeoff commonly occurs between sensitivity and specificity?
- Why does prevalence affect precision?
- How does calibration differ from discrimination?
- Why can strong overall performance conceal harm?
Lesson 17.4 — Large Language Models Generate Tokens From Context
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LLMs process language as tokens rather than as human-like thoughts. Tokens are chunks of text used by the model. The model predicts probable next tokens based on learned patterns and the context provided.
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Transformers use attention mechanisms to represent relationships among tokens across context. This architecture allows modern models to handle long-range language relationships and scale to very large training corpora.
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Context includes instructions, conversation, documents, tool outputs, and other supplied information. Larger context windows allow more material to be considered, but more context does not guarantee that the model will use every detail correctly.
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Generation is probabilistic. A fluent answer reflects a plausible continuation conditioned on the prompt and model—not a database lookup of truth. This explains why confidence in tone should never be treated as evidence.
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Reasoning-oriented models may allocate additional computation before producing an answer. This can improve performance on complex tasks but does not remove hallucination, bias, or the need for external verification.
Clinical Example
Clinical Example — Fluent but Fabricated Policy
An informaticist asks an LLM, “What does our policy say about remote consent?” without supplying the policy or connecting an approved document source. The model gives a polished answer that sounds organizationally specific. The failure is not poor writing; it is answering a question for which the model lacks authoritative evidence.
NI-BC Connection: Data Management and Healthcare Technology — NLP and healthcare-technology trends. Generative AI extends beyond the concepts named explicitly in the current NI-BC outline and is included as future-facing practice content.
Retrieval Checkpoint
Retrieval Checkpoint
- What is a token?
- Why does a large context window not guarantee complete comprehension?
- Why can fluent output be factually wrong?
- What does additional reasoning computation change—and what does it not change?
Lesson 17.5 — Embeddings and Retrieval Give Language Models External Context
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Embeddings represent content as vectors that capture patterns of similarity. They allow systems to retrieve text that is semantically related even when exact keywords differ.
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Retrieval-augmented generation combines search/retrieval with generation. A system retrieves relevant passages from an approved knowledge source and supplies them to the LLM so the answer can be grounded in current organizational information.
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RAG improves grounding but does not guarantee correctness. Retrieval can miss the right document, return stale content, rank irrelevant passages, or expose conflicting policies. The model can also misinterpret correctly retrieved text.
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Chunking and metadata affect retrieval quality. Breaking documents into segments that are too small can remove context; segments that are too large can dilute relevance. Metadata such as department, effective date, and document type can improve filtering.
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Citations should point to the actual retrieved source. Generated-looking citations are not provenance. A useful enterprise system lets the user open the supporting policy, paragraph, or source record.
Figure
Figure 17.2 — Retrieval-Augmented Generation
Production brief: User question → embedding/search → approved document repository → relevant chunks → LLM + prompt → answer with source links. Mark retrieval failure and generation failure as separate risks.
Alt text: RAG pipeline retrieves relevant content from an approved source and supplies it to a language model, which generates an answer linked back to source material.
NI-BC Connection: Data Management and Healthcare Technology — NLP, information retrieval, emerging technologies.
Retrieval Checkpoint
Retrieval Checkpoint
- What do embeddings enable?
- What problem does RAG attempt to solve?
- Why can RAG still be wrong?
- What makes a citation useful in an enterprise AI system?
Lesson 17.6 — Multimodal Models and Agents Expand What AI Can Do
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Multimodal models process more than text. Depending on the model, they may analyze images, audio, video, documents, tables, or other modalities. This can support interface review, document extraction, transcription, and multimodal clinical workflows.
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Tool use lets a model call external functions rather than answer from memory alone. Tools can search databases, retrieve files, run code, or interact with applications. Tool access increases usefulness and risk because an output can become an action.
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Agents sequence multiple steps toward a goal. An agent may retrieve information, compare sources, create a draft, update a system, and report results. Reliability becomes a systems problem involving permissions, checkpoints, logging, and recovery.
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Autonomy should scale with reversibility and consequence. Drafting a meeting summary can tolerate more autonomy than changing an EHR configuration or communicating a clinical decision to a patient.
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Human review should be designed, not assumed. “A human is in the loop” is weak if the reviewer receives hundreds of outputs, lacks time to verify them, or believes the AI is almost always correct.
AI in Practice
AI in Practice — Separate Read, Recommend, and Act
When designing agentic workflows, explicitly distinguish permission to read information, recommend an action, and execute the action. These are different risk levels and should not be granted together by default.
NI-BC Connection: Data Management and Healthcare Technology — healthcare-technology trends and automation concepts. Agentic AI is future-facing content rather than an explicitly named current NI-BC topic.
Retrieval Checkpoint
Retrieval Checkpoint
- What makes a model multimodal?
- Why does tool use increase risk?
- How should autonomy change as consequences increase?
- Why is nominal human review sometimes ineffective?
Lesson 17.7 — AI Failure Modes Are Predictable Enough to Design Around
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Hallucination is generated content that is unsupported or false. It is especially dangerous when the answer is plausible, specific, and delivered with confident language.
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Bias can enter through data, labels, sampling, objectives, deployment context, and human interpretation. Eliminating one sensitive variable does not necessarily remove bias because other features may act as proxies.
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Distribution shift occurs when deployment data differ from development data. Populations, clinical practice, coding, devices, disease prevalence, or workflows can change model performance.
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Model drift refers to performance change over time. Monitoring should detect when relationships or data patterns shift enough to affect safety or value.
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Automation bias occurs when people over-rely on computerized recommendations. AI can reduce vigilance if users assume the model has already considered information they themselves have not checked.
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Prompt injection and data leakage affect tool-connected systems. External content can manipulate behavior, while poorly governed prompts or logs can expose sensitive information.
Caution
AI Confidence Is Not Evidence
Model wording, self-reported confidence, or agreement between two LLMs does not validate a claim. Verification must come from authoritative sources, reproducible calculations, testing, or accountable human expertise appropriate to the task.
NI-BC Connection: Data Management and Healthcare Technology — emerging technology, evaluation, safety.
Retrieval Checkpoint
Retrieval Checkpoint
- What makes hallucination particularly dangerous in healthcare?
- Why does removing a sensitive feature not automatically remove bias?
- Distinguish distribution shift from model drift.
- What is automation bias?
- Why is agreement between two LLMs not independent validation?
Chapter Case Study — The AI Admission Summary
A hospital pilots an LLM that summarizes the prior 72 hours of records for nurses receiving transferred patients. The generated summary is generally readable and saves time. During evaluation, one summary states that a patient “has no known drug allergies” even though an allergy appears in a scanned outside document. Another summary converts “rule out pulmonary embolism” into “pulmonary embolism.” Nurses begin copying portions of the generated summary into handoff notes.
The vendor reports that its internal benchmark accuracy exceeds 95%.
Analyze the case
- Which LLM failure modes are present?
- Why does a vendor accuracy number not answer the clinical safety question?
- How might retrieval architecture improve or fail to improve the allergy problem?
- What happens to provenance when generated summaries are copied into new documentation?
- How could automation bias develop?
- What evaluation design would you require before broader deployment?
Chapter Synthesis
- AI is a family of methods rather than one capability.
- Predictive models learn patterns from data and must be evaluated in the population and workflow where they will operate.
- LLMs generate probable language from context; fluency is not factual grounding.
- RAG, multimodality, and tool use expand usefulness while adding system-level failure modes.
- Hallucination, bias, drift, automation bias, and prompt injection are design considerations, not edge cases.
Key Terminology
- Machine learning
- Methods that learn patterns from data to make predictions or representations.
- Supervised learning
- Machine learning using examples paired with known target labels.
- Feature
- Input variable supplied to a model.
- Overfitting
- Learning training-specific patterns that do not generalize reliably.
- Sensitivity
- Proportion of true positive cases correctly identified.
- Specificity
- Proportion of true negative cases correctly identified.
- Calibration
- Agreement between predicted probabilities and observed outcome frequencies.
- LLM
- Large language model trained to process and generate language through token prediction.
- Embedding
- Vector representation used to encode semantic relationships.
- RAG
- Retrieval-augmented generation, combining external information retrieval with model generation.
- Agent
- AI system that can sequence steps and potentially use tools to pursue a goal.
- Hallucination
- Unsupported or false content generated by a model.
- Automation bias
- Tendency to over-rely on automated recommendations.
NI-BC Chapter Mapping
| Domain | Blueprint area | Lessons | Depth |
|---|---|---|---|
| III. Data/Technology | NLP/emerging technology | 17.1, 17.4–17.7 | Applied |
| III. Data/Technology | Analytics/prediction | 17.2–17.3 | Applied |
| I. Foundations | Evidence, professional judgment | 17.7 | Reinforced |
Chapter Quiz
Answer each question, then select “Check answer” to reveal feedback. For Select All That Apply items, choose every correct option before checking. Expand “Why?” after checking to read the rationale.
Which statement best distinguishes a rules-based alert from a machine-learning model?
Why?
Rules-based systems execute logic explicitly specified by humans; machine-learning models fit statistical patterns from data.
A model performs extremely well on its training dataset but poorly at another hospital. Which problem is most likely?
Why?
Strong training performance with weak external performance is consistent with overfitting, local-pattern dependence, or otherwise poor generalization.
Which statements about model evaluation are correct?Select all that apply
Why?
Sensitivity, specificity, calibration, and subgroup performance each describe different aspects of model behavior. No single accuracy number is sufficient for every decision context.
Why can an LLM generate a fluent false statement?
Why?
LLM output is generated probabilistically from learned patterns and context; fluent language therefore does not guarantee factual grounding.
What is the primary purpose of RAG?
Why?
RAG supplies retrieved external information to the model to improve grounding and currency, but retrieval and generation still require verification.
A model can retrieve a policy, draft a recommendation, and update a ticketing system. Which capability creates the greatest new governance concern?
Why?
Tool use changes AI from a generator of recommendations into a system capable of affecting external systems, making permissions, logging, and control substantially more consequential.
Which can contribute to AI bias?Select all that apply
Why?
Bias can arise from sampling, labels, proxies, deployment context, and how humans interpret or act on outputs.
Clinicians increasingly accept an AI recommendation without checking contradictory chart information. This is:
Why?
Automation bias occurs when users defer excessively to automated recommendations despite contrary evidence or inadequate independent review.
Why does agreement between two different LLMs not prove a claim is true?
Why?
Two models may share training sources, assumptions, architectures, and failure patterns. Agreement between them is not independent authoritative evidence.
A high-risk AI agent can read records, recommend medication changes, and automatically place orders. Which design principle is most appropriate?
Why?
Separating read, recommend, and act permissions applies progressively stronger controls as AI moves from information access to consequential execution. —
References and Further Reading
- Tabassi, E. (2023). Artificial Intelligence Risk Management Framework (AI RMF 1.0) (NIST AI 100-1). National Institute of Standards and Technology. https://doi.org/10.6028/NIST.AI.100-1
- Autio, C., Schwartz, R., Dunietz, J., Jain, S., Stanley, M., Tabassi, E., Hall, P., & Roberts, K. (2024). Artificial Intelligence Risk Management Framework: Generative Artificial Intelligence Profile (NIST AI 600-1). National Institute of Standards and Technology. https://doi.org/10.6028/NIST.AI.600-1
- Nashwan, A. J., Cabrega, J. C. A., Othman, M. I., et al. (2025). The evolving role of nursing informatics in the era of artificial intelligence. International Nursing Review, 72(1), e13084. https://doi.org/10.1111/inr.13084
- Mikkonen, K., Tuunainen, S., Oikarinen, A., et al. (2026). Artificial intelligence technologies supporting nurses’ clinical decision-making: A systematic review. Journal of Clinical Nursing, 35(4), 1525–1540. https://doi.org/10.1111/jocn.70156
- U.S. Food and Drug Administration. Artificial Intelligence-Enabled Medical Devices. https://www.fda.gov/medical-devices/software-medical-device-samd/artificial-intelligence-enabled-medical-devices
- American Nurses Credentialing Center. (2025). Informatics Nursing Test Content Outline (updated August 29, 2025). https://www.nursingworld.org/globalassets/informatics-tco_08292025-for-webposting.pdf