This is our second report on Smart Thinking on AI in Healthcare. Seven years ago there were almost no AI-enabled devices being approved by the FDA but they’ve grown roughly in a straight line, and now ~40% of all radiology devices being approved are AI enabled. Sales of AI-enabled diagnostic equipment are likely to grow at 33% CAGR over the next five years, according to independent forecasters. In some areas AI is now just a cost of doing business; in others it’s possible to provide AI as a service, particularly when serving BioPharma. The path won’t be completely smooth, however, because many doctors are reluctant to embrace AI-enabled devices. The FDA has tried to encourage innovation, however, and as a result AI-driven devices are typically launched in the U.S., rather than in Europe. Companies say the main barrier to innovation is now the lack of clarity around reimbursement.
Read the full report here.