7 Key Tips for AI Tool Developers in Regulated Industries

November 19, 2025

If you’re an Atlassian Marketplace app vendor or you’re exploring how to bring AI capabilities like Rovo into your products and services, this article is for you.

AI is no longer optional – and neither is compliance. What used to be the domain of a few highly regulated sectors like medical devices, pharma, or aerospace has now expanded into almost every industry. Finance, automotive, energy, government, healthcare, biotech, cloud enterprises, and manufacturing all operate under increasing layers of privacy rules, cybersecurity frameworks, safety standards, audit expectations, and now – AI governance requirements.

Your customers aren’t just curious about AI, they’re excited about it. But they’re also required to treat every AI-enabled tool they use as part of their compliance chain, not just a cool feature. That means they’re looking for traceability, auditability, safety controls, data-governance clarity, and strong AI oversight from every vendor they work with – including Marketplace app developers and AI solution providers.

So if you want your AI-powered software tool, Atlassian app or Rovo integration to be adopted in these environments or if you want to sell confidently into enterprises that have auditors and internal governance committees, you need to understand the expectations these customers now operate under.

This blog post walks you through the seven most important considerations AI tool developers must understand before offering their solutions to regulated industries. This article is based on a webinar SoftComply and Orthogonal hosted on November 12, 2025, where we broke down:

  • what regulated teams require from AI tools, and

  • what AI vendors must provide in order to meet those requirements.

This structure is designed specifically to help AI tool developers like Atlassian marketplace partners anticipate and answer the questions regulated customers are already starting to ask.

You can also watch our YouTube video summarizing the 7 considerations:

7 Key Considerations for AI Tool Developers in Regulated Industries

Here are seven critical considerations AI tool developers must understand when building and offering AI solutions for regulated industries.

These points also highlight why – even when an AI tool is technically excellent – regulated organizations cannot adopt it immediately.

1. AI tools aren’t “just tools” in regulated industries – they affect compliance

In regulated industries, an AI development tool isn’t just a convenience – it becomes part of the safety and compliance chain.

What regulated industry customers must do

What AI tool vendors should provide

Regulated teams need to be clear about how the AI assists them (what is the intended use of the AI tool) and where the human remains responsible.

They must think through situations where the AI could generate incorrect code, test cases, or risk controls, and ensure people, not algorithms, make the final judgments.

  • A clear description of intended use (what the tool is designed and not designed to do).
  • Documentation explaining how AI suggestions are generated, even at a high level.
  • Explicit statements about:
    • Where AI is used
    • What parts of the workflow it affects
    • How deterministic or stable those capabilities are

This helps regulated customers correctly scope the AI’s role in their development process.

 

2. Model freezing won’t always work – but predictability & transparency will

One of the biggest challenges for regulated industries adopting AI development tools is the pace of model evolution. LLMs update frequently, often silently, and sometimes in ways that change model behaviour. This is great for innovation but a nightmare for regulatory validation. 

What regulated industry customers must do

What AI tool vendors should provide

Instead of the impossible model freezing, regulated teams need to understand which model version was used at what time, and how changes in the AI might affect validation or safety-relevant work.

If behaviour shifts or new features appear, they need to reassess risk, not assume the tool still works the same way.

  • Versioned releases and release notes that describe what changed.
  • An optional “regulated mode”:
    • Slower change cadence
    • Frozen or semi-frozen model versions
    • Clear deprecation timelines
  • A simple, honest limitations page (“known failure modes”).
  • High-level transparency on:
    • Training data sources
    • Whether customer data is ever used for training
    • Fine-tuning policies

These elements help regulated customers show auditors that they understand — and can manage — change.

3. Human-in-the-loop is mandatory – support it

In safety-critical and regulated industries, AI can assist – but it cannot decide. This is not just a best practice. It’s a requirement in various regulations and international standards they need to comply with.

What regulated industry customers must do

What AI tool vendors should provide

Even the smartest AI cannot replace human accountability in regulated environments.

Teams must review and approve anything the AI generates that may influence safety, risk, or traceability.

They need a clear record of who reviewed what and why decisions were made — this is what auditors will look for first.

  • A review/approve/reject workflow instead of auto-changes.
  • Full audit logging, including:
    • Inputs/prompts
    • AI outputs
    • Human edits
    • Decision history
  • A diff view so reviewers can compare AI suggestions to existing content.
  • Role-based controls:
    • Some users can view AI suggestions
    • Some can accept
    • Some can only edit manually

If you build these controls into your app or platform, you immediately become more suitable for regulated markets.

4. AI tool vendors are regulated suppliers

When an AI tool influences product quality or compliance, the vendor becomes a critical supplier.

What regulated industry customers must do

What AI tool vendors should provide

Regulated teams must assess vendor maturity, transparency, data handling, change processes, and incident response — just like any other regulated supplier.

They also need clear contractual terms about data use, especially around prompts and model training.

  • A Security & Compliance Pack:
    • SOC2 / ISO 27001 reports (or roadmap)
    • Data handling statement
    • IP and training data policies
    • Vulnerability management & incident response
  • A “Regulated Use FAQ” customers can share with auditors.
  • Clear documentation on:
    • How you deploy model updates
    • What operational controls you implement
    • How you detect regressions or defects

The more you can “pre-answer” these questions, the easier it becomes for regulated teams to select your product.

5. Support incremental AI tool adoption – not full autonomy

Regulated companies cannot adopt AI like consumer or enterprise teams do. Instead, regulated companies must adopt AI gradually – one workflow, one team, one risk level at a time.

What regulated industry customers must do

What AI tool vendors should provide

Teams should start with low-risk use cases where AI helps but doesn’t decide — such as drafting tests or summarizing documentation.

They need clear rules about where AI can operate and where it cannot, and they must enforce these rules through permissions and process boundaries.

This approach ensures AI adoption grows safely and predictably.

  • Configurable feature toggles (let teams turn off AI features that are too risky).
  • AI modes with restricted scope:
    • “Assist only” mode
    • “Suggest but don’t write” mode
    • Workspace/project-level access restrictions
  • Guardrails that prevent:
    • Auto-merging of code
    • Auto-updating regulatory documentation
    • Auto-creating risk controls

This helps regulated industry customers adopt AI safely, gradually, and in a controlled manner.

 

6. Regulated Industries will ask about metrics – help your users show ROI

In regulated industries, teams cannot simply adopt an AI tool because it “seems helpful.” They must demonstrate, with objective evidence, that the AI:

 1. improves productivity or quality, and

 2. does not introduce safety or compliance risks.

What regulated industry customers must do

What AI tool vendors should provide

Regulated teams using AI must be able to show that the tool improves efficiency without compromising quality or safety.

They should track whether AI-assisted work produces fewer defects, better coverage, or faster cycles — and demonstrate that AI hasn’t introduced new risks.

Metrics justify continued use and satisfy auditors that AI is helping, not harming.

  • Built-in usage analytics:
    • How often AI suggestions are used
    • Acceptance vs rejection rate
    • Areas of the codebase or project most affected
  • Recommended KPIs your AI improves
  • Dashboards or export tools enabling teams to prove:
    • Efficiency gains
    • Quality stability
    • Reduced rework

This turns your AI from “mysterious black box” into “measurable productivity tool.”

7. Safety-focused UX matters – good boundaries make good AI tools

In regulated companies, UX of your AI tool is not cosmetic – it’s a safety feature.

What regulated industry customers must do

What AI tool vendors should provide

Clarity is critical: users must be able to see what the AI generated, what humans authored, and what has been approved.

Regulated teams need straightforward ways to track where content originated and how it flows across requirements, risks, tests, and documentation.

Policies should define which data AI may access, and which artifacts it is prohibited from touching.

  • Strong UX patterns for regulated use:
    • “AI-generated – review required” labels
    • Links to source documents used to generate content
    • Metadata showing model version / timestamp
  • Traceability hooks:
    • IDs for AI-generated artifacts
    • API endpoints enabling integration with QMS tools
  • Policy controls:
    • Model selection restrictions
    • No-train / no-log mode
    • Org-wide AI usage policy enforcement

These design choices make your AI feature adoptable across regulated industries.

Closing Message for AI Tool Vendors

Let’s be honest, most AI tools used in software development today don’t meet any of these seven requirements.

But we cannot afford to wait until something goes wrong – until a device malfunctions, or a patient gets hurt, before we raise the bar.

If you can’t deliver all seven safeguards today, focus on the ones that matter most – the first three considerations:

  • Define the intended use clearly

  • Keep humans in control

  • Document model versions and behavior changes

These three are the foundation of trustworthy AI in regulated development. Do them right, and you’re already far ahead of most tools on the market.

An Example of AI Tool Audit-Readiness Checklist for Medical Device Developers

Following is a list of best practices in AI tool adoption and evidence the auditors may be looking for when auditing the Quality Management System of a Medical Device company:

Best Practice / Audit Question

Objective Evidence to Show Auditors

Reference / Source

Have you defined and documented the intended use of each AI tool?

Tool Intended Use Statement describing purpose, boundaries, and human oversight.

ISO 13485:2016 §4.1.6 
ISO TR 80002-2:2023 §5.2 
FDA CSA Draft (2022)

Have you classified each AI tool by its risk impact on product quality or safety?

Tool Risk Classification matrix (low / medium / high) with justification.

ISO/TR 80002-2:2023 §6 
FDA CSA Draft (2022) Risk-based Approach

Is each AI tool validated for its intended use (not for perfection)?

Validation Plan + Test Results showing consistent, reproducible performance.

ISO 13485 §7.6 / ISO /TR 80002-2 §7 / GAMP 5 (2nd Ed.) §4.4

Are humans always in the loop for AI-generated content?

SOP or workflow requiring human review & approval of all AI outputs.

EU AI Act Art. 14 (Human Oversight) 
ISO/IEC 42001 Annex A.7 
FDA GMLP Principles

Can you trace each AI-generated artifact to its tool, version, and reviewer?

Audit log or metadata fields (tool ID, model version, timestamp, review signature).

ISO/TR 80002-2 Annex D
ISO 13485 §4.2.5
ISO/IEC 42001 Annex A.6

Are AI tool and model versions locked and documented?

Version control records; “frozen model” evidence; revalidation trigger criteria.

ISO/TR 80002-2 §7.4
GAMP 5 (2nd Ed.) §4.5
FDA CSA Draft (2022)

Is data, IP, and privacy protected when using AI tools (no uncontrolled data flow to vendors)?

Data-handling SOP, vendor agreements, and network architecture showing isolation.

ISO 13485 §4.2
GDPR
EU AI Act Art. 10 & 28 
ISO/IEC 27001 & 27701

Do AI tool vendors provide transparency (model card, update notes, limitations)?

Supplier file including AI Factsheet / Model Card / Changelog.

ISO 13485 §7.4 (Supplier Control)
ISO/IEC 42001 §5.3
NIST AI RMF “Map”

Do you monitor AI tool performance continuously and revalidate after significant change?

Ongoing monitoring logs, benchmark dataset results, drift analysis reports.

ISO/TR 80002-2 §7.4
FDA CSA Draft (2022) Continuous Verification
NIST AI RMF “Manage”

Do you maintain a complete AI Tool Validation File?

One folder per tool containing: intended use, risk, validation plan, test results, vendor docs, version logs, approvals.

ISO 13485 §4.1.6
ISO/TR 80002-2 Annex D
GAMP 5 §4.6

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