Next-Level Care: Generative AI Poised for $22B Growth in Healthcare

The generative artificial intelligence (AI) market for healthcare is valued at more than $1 billion as of 2022, and it is projected to swell to nearly $22 billion by 2032. Technology giants, venture capitalists and private equity firms will play a significant role in that market, acting as investors, partners and innovators.

Meanwhile, healthcare companies — including providers, payers, pharmaceutical companies and others — recognize generative AI’s potential to transform health and medicine and are teaming up with tech giants and startups to introduce cutting-edge AI technology to all aspects of care — from research to treatment to billing.

The “Generative AI Tracker®” delves into the current state and future potential of generative AI in healthcare. It explores various use cases, examines issues and challenges, and offers examples of emerging regulations. This edition highlights select startups addressing complex healthcare challenges, including drug discovery, patient care and clinical decisions.

Generative AI Companies Stand Poised to Transform the Care Continuum

Healthcare-focused companies and startups are turning to generative AI innovations to tackle complex drug discovery, diagnostic testing and patient care challenges. They are securing investments, emerging from stealth mode and announcing new clients. In some instances, they are also being acquired, following a pattern commonly seen when technology becomes more established.

To learn more, visit the Tracker’s Companies of Note section.

Generative AI Can Improve Medical Research, Drug Development and Patient Care

Large language models (LLMs), the core of generative AI, offer many applications beyond drug discovery, promising to reshape other aspects of healthcare, including provider-patient interactions and care delivery. The U.S. Department of Health and Human Services (HHS) maintains a growing list of complex and detailed AI use cases deployed or in development within the federal government.

To learn more, visit the Tracker’s Innovation and Use Cases section.

Generative AI’s Technology Is Not Fully Optimized for Healthcare

Generative AI faces many growing pains as it seeks its footing. In a recent survey, management consulting firm Bain & Company revealed that the main barriers to generative AI in healthcare are a lack of resources, expertise and regulation, with data access and quality and organizational resistance close behind. The recurring theme across industry studies is that generative AI in healthcare is nascent and needs time to prove its efficacy and to earn public trust.

To learn more, visit the Tracker’s Issues and Challenges section.

About the Tracker

The “Generative AI Tracker®,” a collaboration with AI-ID, delves into the current state and future potential of generative AI in healthcare. This edition examines the role that generative AI can play in transforming critical aspects of healthcare, from research to treatment.