tl;dr
<p>The budget allocation for artificial intelligence (AI) and machine learning (ML) in the healthcare sector is expected to increase from 5.5% in 2022 to 10.5% in 2024, according to a report by Morgan Stanley. This significant growth is driven by the industry-specific implications of AI and ML...
The budget allocation for artificial intelligence (AI) and machine learning (ML) in the healthcare sector is expected to increase from 5.5% in 2022 to 10.5% in 2024, according to a report by Morgan Stanley. This significant growth is driven by the industry-specific implications of AI and ML advancements. AI is having an impact on various sectors, including healthcare, which is experiencing high valuations in chipmakers and biopharma firms. For example, Recursion Pharmaceuticals saw a surge in stock price after receiving a $50 million investment from chip maker Nvidia. The use of AI and ML in healthcare goes beyond drug discovery and has the potential to transform the entire sector. Currently, 94% of healthcare companies use some form of AI/ML, but only 24% of medical devices leverage this technology. Morgan Stanley highlights four key areas for AI and ML applications in healthcare: life sciences tools and diagnostics, medical technology, biopharma, and healthcare services and technology. In the life sciences and diagnostics field, AI can enhance advanced diagnostics by combining genomic data, medical imaging, and patient health records. Leading companies in gene sequencing and diagnostics include Illumina, Pacific Biosciences of California, Thermo Fisher Scientific, and Agilent Technologies. In the medical technology sector, AI can analyze vital signs and aid in the detection and treatment of diseases. Companies focusing on continuous glucose monitoring, cardiac monitoring, and neuromonitoring are set to benefit from AI integration. Medtronic, Insulet, and Tandem Diabetes are some of the key players in this space. In the biopharma industry, AI/ML can revolutionize drug discovery, clinical development, manufacturing, and patient engagement. More than 100 marketing applications for drugs and biologics in the US included AI/ML components, indicating the growing integration of this technology. By improving preclinical development success rates, AI can lead to additional drug approvals and significant value for the biopharma sector. Ginkgo Bioworks, a drug discovery firm, recently partnered with Google Cloud to enhance its capabilities using AI technology. In healthcare services and technology, AI and ML can benefit healthcare providers and patients by shortening detection and diagnosis times and improving patient care, insurance, and pharmacy services. Leading providers of electronic health records in the US include GE Healthcare, NextGen Healthcare, and Cerner. HCA Healthcare and Teladoc Health have also partnered with Google Cloud and Microsoft, respectively, to harness the power of AI for various healthcare tasks. Overall, the increased allocation to AI and ML in healthcare presents significant opportunities for advancements and improvements in the industry.