The integration of Natural Language Processing (NLP) and Generative AI in healthcare holds transformative potential, enabling efficient diagnostics, personalised care, and streamlined administrative tasks. However, these technologies present unique challenges under UK regulations and compliance frameworks. Adherence to the General Data Protection Regulation (GDPR) is paramount, necessitating stringent data anonymisation, secure processing, and lawful bases for data usage. The Medical Device Regulation (MDR) requires certain AI applications to meet safety and efficacy standards if classified as medical devices. Transparency, explainability, and bias mitigation are critical to aligning with the principles of ethical AI outlined by the UK Information Commissioner’s Office (ICO). Furthermore, compliance with NHS Digital’s Digital Technology Assessment Criteria (DTAC) ensures AI tools are fit for integration into NHS systems. This abstract examines the regulatory landscape, highlighting the balance between innovation and accountability to foster safe, ethical, and effective AI adoption in UK healthcare.