|A recent report by CB Insights predicted an impressive increase in the value of medical AI startups from $760 million in 2016 to $10 billion in 2024 / Credits: Andrey Tolkachev via Shutterstock|
Artificial intelligence in healthcare is continuously growing as the years pass by. A study conducted by professional search engine ReportLinker reported that AI in the healthcare market is projected to grow from $2.1 billion to $36.1 billion by 2025. This growth is driven by North American investment, with the US at the forefront of innovation and spending. The increasing adoption of AI to improve patient health is also a major factor.
Today, many hospitals, research centers, pharmaceutical companies, and other healthcare institutions are not only adopting AI and machine learning but also natural language processing. Natural language processing is currently being used in applications such as lifestyle management and monitoring, patient data and risk analysis, and mental health. Also, the largest size of AI in the healthcare market in terms of end-users is expected to be held by the hospitals and providers segment due to several factors. This includes the ability of AI systems to improve care delivery, patient experience, and bring down costs; a large number of applications of AI solutions across provider settings, and more.
Medical AI startups are also increasing. A recent report by CB Insights revealed that healthcare AI startups have raised $4.3 billion since 2013, topping all other industries. It also projected an impressive increase in the value of this market from $760 million in 2016 to $10 billion in 2024. One of the medical AI startups that are currently leading the way is OrCam. OrCam’s AI-assisted reading device makes the world more accessible to blind and partially sighted people.
The great thing about these startups is that they develop many AI-assisted healthcare products that are now being used in homes, hospitals, and clinics to improve people’s lives. “We hear a lot about the work of big pharma companies, but the important contributions that startups make to the healthcare industry often go under the radar. The big corporations often lack the research capabilities to develop AI-assisted products in-house, which is why many have partnered with startups in this sector,” Ashmita Das, CEO of Kolabtree, said.