Applying AI in Healthcare: Exciting Opportunities Beyond Drug Development

The application of AI in healthcare extends beyond drug development. It can be used in areas such as healthcare delivery, lowering the cost of doctor visits, telemedicine, and streamlining insurance reimbursement. Operational friction in healthcare processes, such as prior authorization, can be reduced with AI models that read and understand data. While the upfront cost of drug development may not be significantly impacted, AI can increase the probability of success, making recruiting and clinical trials more efficient. However, challenges in drug development include biological differences and the incentive for incumbents to drive up costs and hinder new startups.