The use of personalized artificial intelligence (AI) models in assistive healthcare presents a number of ethical and legal challenges, they are examined in this paper. We look at a number of situations in which AI models have close interactions with persons under care. In particular we are interested in the question of model and data ownership, privacy, and ethical implications. The paper also surveys the existing regulatory environment, including the US Congress's legislative initiatives and the US Federal Trade Commission's examination of AI. Additionally, it covers AI strategies such as modular AI and discusses possible solutions to the issues described. We present an overview of the current outstanding problems and with this work offer a researched and organized contribution for a public discussion of responsible application of AI in this field of healthcare. Our selection of topics is guided by keeping in mind the key stakeholders: technology providers, healthcare or care providers, care beneficiaries and their families.