The adaptive artificial-intelligence (AI) medical device industry is a novel industry in the United States offering innovations to the healthcare field. The rapid expansion of this industry in recent years has drawn attention from multiple stakeholders causing a heated debate about how to introduce these innovations into the market while maintaining patient safety and treatment efficacy. Since early 2019, the U.S. Food and Drug Administration (FDA) has been releasing statements in regards to the improvement of regulation for this new technology, but has yet to take further actions. Dilemmas including 1) a difficult regulatory process, 2) a heightening financial burden and 3) looming liability issues, are reasons adaptive AI medical devices have struggled to be advanced. By conducting a thorough analysis of these 3 issues, recognizing the intricacies of them separately and together, this study develops a better understanding of the landscape adaptive AI technology is facing and provides a clearer picture for the future of the industry.