What it shouldn't do is give specific advice on medical matters. Even if it's no worse than a doctor, or even better than a doctor, 9 times out of 10, that one exception could cause serious trouble. Unlike regular Chat-GTP users, people with dementia are already quite sick, are (usually) already on medication, and require more thoughtful care.
More importantly, it shouldn't be capable of mimicking a living or dead person. You'd probably need to hardwire it so that it has a name and "personality" of its own, which can't be changed by the user.
What could possibly go wrong!
As a follow up, you could branch out into hardware and give skateboards to people with Hemophilia, or paragliders to vertigo sufferers.
>What features could make it more ethical?
You should think the other way around, start with an ethical base, and only add features that keep it ethical.
Wouldn’t addressing those concerns make it ethical?
Anyway, things are either ethical or they are not. There is no “more ethical.” (but there are things that are outside ethics, what a red shoulder hawk does for example).
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One approach would be to address its use in a living will while the future patient can make an informed decision for themselves.
Good luck.