Artificial intelligence (AI) has not been developed to replace human beings but to enhance human contribution to society and the future. The simulation of human intelligence by creating and applying algorithms built into a computing environment is called artificial intelligence. It attempts to make computers act and think like humans.
The healthcare industry has been hesitant to adopt new technologies because of heavy regulation. However, the healthcare industry is beginning to recognize the advantages AI may offer, and it is now being deployed in many contexts throughout the entire value chain. The healthcare industry's digital transformation has been accelerated in a way that has never before happened because of COVID-19. To quickly produce COVID-19 therapies, AI successfully repurposed already-approved medications to target the virus. The market for AI platforms for the entire healthcare industry increased from $5.9 billion in 2019 to $7.5 billion in 2021, representing a compound annual growth rate (CAGR) of 12.5%.
Healthcare providers spend the most on AI platforms compared to pharmaceutical and medical device firms, from $4.1 billion in 2019 to $5.2 billion in 2021, a 13.2% CAGR. Hospitals and payers must invest in machine learning (ML) and data science across the whole value chain – ML and data science are AI's two most crucial subsets. AI can help doctors and other healthcare professionals make treatment decisions by evaluating patient data to suggest treatment options or assist with diagnosis and screening, ultimately lowering the workload of doctors.
Pharmaceutical companies spending on AI platforms increased by 10.3% during the two years, from $1.0 billion in 2019 to $1.3 billion in 2021. The entire pharma value chain can employ AI for a variety of purposes. The application of AI has the potential to speed up clinical trials, enabling end-to-end visibility in pharmaceutical supply chains and minimizing the time and cost associated with the discovery of new pharmaceuticals. It can also be used to automate manufacturing and R&D.
Medical device companies spent $1.0 billion in 2021 compared to $0.8 billion in 2019, a CAGR of 11.7%. ML and data science innovations can enhance the stack of medical devices - shortening the time needed to develop new products, accelerating clinical trials, and minimizing supply chain and distribution disruptions.
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