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AI Investments Dominate Healthcare; Silicon Valley Bank Releases New AI Patient Journey Report
New report finds one in four dollars invested in healthcare going toward companies leveraging AI SAN FRANCISCO, June 11, 2024 /PRNewswire/ -- Venture capital
About this update from First Citizens Bancshares, Inc.
[{"type":"text","content":"New report finds one in four dollars invested in healthcare going toward companies leveraging AI\nSAN FRANCISCO, June 11, 2024 /PRNewswire/ -- Venture capital deal activity in Artificial Intelligence (AI) for healthcare has surged the past five years, growing twice as fast as the tech industry overall. A record one in four healthcare investment dollars goes to companies leveraging AI, according to the latest report from Silicon Valley Bank (SVB), a division of First Citizens Bank.\n\n \n \n \n \n \n \n\n \nLeveraging SVB's proprietary data and insights, SVB's AI-Powered Healthcare Experience report provides an in-depth look at current fundraising activity and challenges, macro trends and emerging technologies in healthcare, with a specific focus on AI enablement related to patient care and provider options.\n\"The current and future impact of AI on the patient journey could not only provide lower costs but also better patient outcomes,\" said Raysa Bousleiman, co-author on the report and vice president, Life Science & Healthcare venture capital relationships at SVB. \"While companies may face challenges to adapt to the AI-enabled future, we are optimistic about the innovations we see on the horizon and in the growing investment in these companies.\"\nThe report analyzes four key themes shaping the future of AI across the patient journey, including:\nAdministrative AI may be low-hanging fruit: Despite the buzz around AI for drug discovery, the majority (60%) of healthcare AI dollars are going towards administrative and clinical uses. Investors are especially drawn to administrative AI because it often faces fewer regulatory and adoption hurdles than clinical AI.Doing the diligence: Companies that can leverage a provider's existing infrastructure in their new product may find preference among VCs. For example, 70% of US provider's use EPIC for their Electronic Health Record (EHR) and AI companies in the EHR space may find themselves with a leg up if they establish interoperability with the EPIC system.Startups flexibly delivering value: Organizations often favor established players when purchasing AI solutions. To overcome this, startups must clearly articulate why they're the better choice compared to larger incumbents that organizations might already have as partners. Startups' flexibility is their strength. Massive adoption and...