The healthcare and life sciences sector is emerging as a leader in the adoption and implementation of artificial intelligence. The sector is significantly ahead of other sectors, both in the number of AI models in production and the overall maturity of AI initiatives.
About half (48%) of respondents from healthcare and life sciences on a study A survey commissioned by Vultr by 451 Research found that they believe AI is the most important technological advancement that will impact industrial networks in the next five years, with 49% expecting AI to improve network management across both IT and OT systems.
More than 170 AI models
According to the report, healthcare and life sciences organizations have more than 170 AI models in production on average, a number that is expected to rise to 182 within a year.
This is significantly higher than the average of 159 AI models in production reported by other industries, which is expected to reach 174 models over the same period.
The research shows that the rapid and widespread adoption of AI within healthcare and life sciences is having a significant impact on business operations, with 81% of AI-driven healthcare and life sciences enterprises outperforming in 2023 compared to 2022.
Eighty percent of healthcare and life sciences organizations reported moderate to significant improvements in customer satisfaction and 82% of these organizations saw improved revenue growth results.
Marketing improvements
In terms of marketing efficiency, 81% of AI-matured healthcare and life sciences companies saw improvements in conversion rates, return on ad spend, and cost per customer acquisition.
The technology’s impact extends across functions within healthcare and life sciences, with half of organizations expecting AI to be implemented across all business units and applications in the next two years.
The strategic focus on AI within the healthcare and life sciences sector is also reflected in the allocation of IT budgets. The study indicates that 24% of IT budgets in AI-mature healthcare and life sciences organizations are currently dedicated to AI initiatives.
Nearly all (93%) of healthcare and life sciences organizations surveyed said they plan to increase their spending on AI by 2025. The survey also found that two-thirds of these organizations are custom building or using open-source models to deliver AI functionality.
Additionally, 62% collaborate with third parties to develop their AI models, 28% opt for AI specialists, 23% choose global system integrators and only 11% use hyperscalers such as AWS, Google Cloud Platform or Microsoft Azure.
There are still challenges
Despite the industry’s progress in AI, the research found that challenges remain. The top two barriers to achieving transformational AI status are data governance and compliance issues, followed by security concerns.
The research also found that nearly three-quarters (73%) of healthcare and life sciences organizations find it difficult to identify cybersecurity risks within their supply chains, a sentiment shared by 74% of CIOs in the sector.
The research underscores the rapid transformation AI is bringing to healthcare, as providers, health tech startups and others rush to implement the technology.
From the Mayo Clinic Using AI to Enable 3D Imaging As evidenced by the Cleveland Clinic’s recent establishment of a fellowship in quantum computing and AI, AI is becoming increasingly important in the healthcare ecosystem, even as risks and concerns about its use are highlighted.
For example, to protect patient data while training AI models, encryption technology for elections is being considered as a possible solution.
The HIMSS AI in Healthcare Forum will take place September 5-6 in Boston. More information and registration.
Nathan Eddy is a healthcare and technology freelancer based in Berlin.
Send an email to the writer: nathaneddy@gmail.com
Twitter: @dropdeaded209