AI and Healthcare

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What is driving AI growth in healthcare?


AI is growing exponential in the healthcare industry due to many reasons. Some benefits currently aiding in this growth include storing healthcare data, Reducing Workload and increasing quality of care, the demand for precision medicine, a shortage of healthcare workers and a reduction on increased healthcare costs.


Software programs enhanced with AI offer the ability to store specified data more effectively. There is an increasing data volume and an exponentially increasing need to effectively store and manage healthcare data. Innovative technologies programmed to handle data related to patients, legal information, and financial reports will be optimized and further accelerate business penetration. This ROI results from less employment and a reduced paper trail.

AI can also benefit the overload of healthcare data by more adequately screening for fraudulent information. Another application involves storing a database of medical conditions for users (patients) to compare their symptoms.

According to data, 12 million Americans are misdiagnosed in outpatient clinics each year, and with proper AI screening costs of multiple visits and excess medication can be drastically reduced.


AI will drastically reduce both the physical workload and data entry workloads. A fair amount of administrative work is generated each time a patient visits a healthcare facility. Bots can be assigned to handle the repetitive paperwork, room assignment and can answer basic questions. This saves resources and allocates humans to more demanding jobs.

Since AI needs no rest and cannot be distracted or overloaded with information, assigning these systems to overnight shifts and multiple assignments is no problem. These systems can also be integrated with multiple language optimizations, meaning conversing with foreign patients is simple.


One of the more exciting components of introduced AI into healthcare involves the implementation of robotics. These systems can perform semi-automated surgical tasks with increasing efficiency. Surgical robots will comprise the highest contribution to the 21% increase 5-year CAGR by 2021.

Surgery is transitioning to a more digital task, and top companies such as Google are opting in to support these advancements. AI compliments surgeons by screening for imperfections not easily detectable by a screen on the soft tissue level.


By 2020 there will be 1.2 million vacancies for nurses and with the population rising and life expectancy increasing there simply aren’t enough hands to keep up. AI systems can continually handle multiple tasks and as mentioned above, can complete these tasks more efficiently.

The costs saved by healthcare facilities no longer responsible for as many salaries will also be put towards creating more infrastructure for the increasing patient population. Bots may even be assigned to specific patients, leaving human nurses with more time to carry out other tasks.


Global expenditures on health care increased from 9.0% to 9.9% of total GDP between 2000 and 2014. The highest expenditure in U.S. history was experienced in 2015 and reached 17.8% of Total GDP. All of this in addition to the fact that the world’s population aged 60 and above will increase 56% by 2030 creates a tremendous strain on the current healthcare system.

The healthcare industry is expected to save $45 billion in annual cost savings by 2025 thanks to the help of AI. Though the cost to initially implement these systems is high, the major benefit of AI is self-learning capabilities and longevity, meaning once these systems are in place they can be utilized practically indefinitely.


AI within the healthcare industry is growing rapidly due to factors such as storing healthcare data, reducing workloads and demands for precision medicine. While AI continues to advance the possibilities are seemingly endless, but the projected results are already staggering.
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Healthcare AI vs. Total AI: growth comparison

Artificial Intelligence in the Healthcare Industry is projected to grow at a CAGR of 52.68% until 2022. The projected CAGR of AI overall is 52%, a rate very similar to that expected within the Healthcare Industry. However, North America is expected to be the largest segment in Healthcare, while Asia will likely be the largest market segment for Healthcare overall.

Below you will find our full overview of Healthcare AI growth versus Total AI Growth

Projected Growth

In the Healthcare Industry, Research and Markets projects the market size of AI to grow at a CAGR of 52.68%. The global market size of AI has been offered by several sources, with Grand View Research expecting a CAGR of 57.2%, Orbis Research looking for 50.51%, and Research and Markets forecasting a 52% CAGR. We have selected the last of the three as the CAGR for use within this comparison for two reasons. First, although all three results were published within 2017, the data from Research and Markets was the most recent, published in November. Grand View Research published in July, preceded in May by Orbis. Second, the third was published by Research and Markets, the same organization that provided the data for Healthcare AI markets. We believe it is safe to assume similar methodologies for both results due to their shared source, allowing for greater validity in this comparison. However, we have chosen to still include other information from the Grand View and Orbis Research results because the results are so close it seems likely they are equally valid, but produced through differing research methodologies.

The growth of the AI Market in Healthcare is expected to grow the most within North America. This is apparently based upon the current size of that market segment, the largest within the Healthcare AI market as of 2016. The global AI market is expected to be greatest with Asia, however, which Grand View Research claims is based on "information storage capacity, high computing power, and parallel processing, which have contributed to the swift uptake of artificial intelligence in end-use industries such as automotive and healthcare."

Growth Drivers

The AI market in Healthcare and Overall both will result from the push by developers to generate more sophisticated and advanced AI. The market within Healthcare also will likely see the expected growth because of increased adoption by large organizations. A greater adoption rate has also been cited as a driver of the global market.

The Healthcare AI Market does have some underlying factors which are unique. In the previous paragraph, the increased rate of technology adoption was mentioned, and this escalation will likely occur because of the greater patient outcomes that result from the use of AI technology. Those outcomes exist in conjunction with lowered costs and greater precision.

The fact that the rate of growth between the overall AI market and that found within the Healthcare Industry is also likely related to the increased occurrence of cross industry partnerships and the escalation of venture capitalists. These two elements result in new perspectives examining the inner workings of the Healthcare Industry. Those new eyes will, in some instances, will understand the ongoing hardware and software innovations in AI currently being pushed by Microsoft and other organizations or the strides in deep learning and possible benefits for medicine. Put simply, by involving representatives from other industries, the Healthcare Industry receives the benefit of the drivers unique to it as some driving factors that would not otherwise impact that field.


The global AI market has a projected CAGR of 52% with the highest rate of growth expected in Asia. The global AI market for the Healthcare Industry is expected to be 52.68%, with North America demonstrating the most growth. Greater patient outcomes and reduced costs are some main drivers behind the growth of Healthcare AI, while the general AI market will grow because of the push by developers for application specific and more sophisticated Artificial Intelligence.

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