The healthcare and life sciences industry is emerging as a leader in the adoption and implementation of artificial intelligence, outpacing other industries in both the number of AI models being produced and the overall maturity of AI initiatives.
About half (48%) of respondents to a healthcare and life sciences study conducted by 451 Research and commissioned by Vultr said they see AI as the most important technological advancement likely to impact industrial networks in the next five years, with 49% expecting AI to improve network management across both IT and OT systems.
170+ AI models
According to the report, healthcare and life sciences organizations have deployed an average of more than 170 AI models in production, a number that is expected to increase to 182 in the coming year.
This is significantly higher than the average of 159 AI models in production reported by other industries, which are expected to reach 174 models in the same period.
Research shows that the rapid and widespread adoption of AI in healthcare and life sciences is delivering significant business impact, with 81% of healthcare and life sciences businesses adopting AI performing better in 2023 than in 2022.
Eighty percent of healthcare and life sciences organizations reported moderate to significant improvements in customer satisfaction, and 82% of these organizations saw better results in terms of revenue growth.
Marketing Innovation
In terms of marketing effectiveness, 81% of life sciences and healthcare companies that applied AI saw improvements in conversion rates, return on advertising investment, and cost per customer acquisition.
The impact of this technology is widespread across a variety of functions in healthcare and life sciences, with half of organizations expecting AI to be applied across all business units and applications in the next two years.
The strategic focus on AI in healthcare and life sciences is also reflected in IT budget allocations. Research shows that 24% of IT budgets in AI-mature healthcare and life sciences organizations are now dedicated to AI initiatives.
Nearly all (93%) of healthcare and life sciences organizations surveyed said they plan to increase spending on AI by 2025, and the study found that two-thirds of these organizations are building their own models or using open source models to deliver AI functionality.
Additionally, 62% are partnering with external entities to develop their AI models, with 28% choosing AI experts, 23% choosing global system integrators, and only 11% leveraging hyperscale service providers such as AWS, Google Cloud Platform, and Microsoft Azure.
Challenges remain
Despite advances in AI, the survey found that many challenges remain, with the top two obstacles to achieving transformative AI based on data governance and compliance concerns, followed by security issues.
The study also found that nearly three-quarters (73%) of healthcare and life sciences organizations find it difficult to assess cybersecurity risks in their supply chains, a view shared by 74% of industry CIOs.
This study highlights the rapid transformation that AI is making in healthcare as providers, healthcare tech startups, and many others are rapidly implementing the technology.
From the Mayo Clinic leveraging AI to aid in 3D imaging to the Cleveland Clinic recently establishing a research group on quantum computing and AI, AI is increasingly becoming an integral part of the healthcare ecosystem even as risks and concerns about its use are being highlighted.
For example, to protect patient data while training AI models, encryption technology used in elections is being considered as a possible solution.
The HIMSS Healthcare AI Forum is scheduled for September 5-6 in Boston. Learn more and register.
Nathan Eddy is a healthcare and technology freelancer based in Berlin.
Email the author: [email protected]
Twitter: @dropdeaded209
