The healthcare field has immense potential for innovation, with artificial intelligence (AI) being a promising solution. AI can tap into the vast amount of healthcare data to provide valuable insights. The pharmaceutical industry seeks faster drug development processes, and AI holds the potential to revolutionize it. By enabling efficient management practices, AI can ensure the right medications are delivered in optimal quantities to patients. However, the practical implementation of AI in healthcare is still in its early stages, creating a significant gap between theory and application. To bridge this gap, tangible evidence of AI’s effectiveness is crucial, moving beyond its promising scientific aspects.
Research and development
Artificial intelligence (AI) could enhance drug success rates in clinical trials, but it will take time. Even if AI boosts drug development, competitive advantages may not arise. Widespread adoption of AI to speed up time-to-market could diminish its benefits and pressure pricing. While there may be significant PR, profitability remains uncertain.
AI can help optimize clinical trial logistics by quickly identifying suitable sites and streamlining patient enrollment. It also enables the identification and rectification of underperforming sites, enhancing trial efficiency and patient outcomes.
AI has the potential to identify ideal doctors for new products and targets effective events to create buzz around drugs. This aspect may be less glamorous than AI in R&D, but it is vital for pharmaceutical companies’ business formula.
The human experience
Most consumers may not be aware or concerned about AI-accelerated drug trials, but every patient seeks the best diagnosis from their doctor. AI has the potential to make a significant difference here, with a smart physician’s AI assistant aiding in pinpointing rare disorders based on symptoms. These tangible benefits are what consumers would pay more for, contributing meaningfully to healthcare provider’s bottom line.
The success of AI in these areas will be determined by its ability to deliver enhanced healthcare outcomes.AI has the potential to expedite the process of transforming data into valuable insights, allowing employers and insurers to gain a comprehensive understanding of the various factors influencing an individual’s health. Strategic implementation of AI in this context can result in enhanced decision-making in healthcare and decreased costs for healthcare organizations.
Leading US and Irish companies have started integrating AI into commercial tools, with advancements expected in the clinical field. Intuitive Surgical collects data from millions of procedures to address surgical anomalies, while other prominent firms are continuously making efforts to develop an AI model for the early detection of lung cancer, improving treatment possibilities. AI’s growing role in healthcare shows promises for transforming diagnostics and surgical practices and enhancing patient outcomes.
How Should Investors Asses the Evaluation of AI in Healthcare?
Investors evaluating AI in healthcare should prioritize long-term profitability over predicting transformative initiatives. Similar to the uncertainty of drug development, forecasting the impact of AI technology on the future of healthcare offers no advantage. Disruptive technologies often face failures before eventually transforming industries and creating profitable businesses. The AI revolution will progress gradually, and technological advancements alone do not guarantee business success. In fact, if a successful AI application becomes commoditized, it may reduce profitability. When considering healthcare investments, investors must inquire about revenue generation, time to market, and competitive strategies. Focusing on sustainable businesses that reinvest above their cost of capital is essential. If these businesses also execute a promising AI plan, investors can benefit further, but even if the AI initiative fails, a profitable business serves as a cushion.