Healthcare one of the largest sectors of the U.S. economy is among the many industries with significant opportunities for the use of artificial intelligence (AI) and machine learning (ML), says Salveen Richter, lead analyst for the U.S. biotechnology sector at Goldman Sachs Research.
We are in an exciting period when we are seeing the convergence of technology and healthcare two key economic sectors and we have to assume it will result in significant innovation, she says. We spoke with Richter, one of the authors of our in-depth Byte-ology report, which includes contributions from Goldman Sachs healthcare and technology research teams, about the integration of AI/ML into healthcare, the most promising applications for this technology and the landscape for venture capital funding in the field of byte-ology.
Why is healthcare ripe for disruption?
We see the combination of healthcares vast, multi-modal datasets and AI/MLs competitive advantages in efficiency, personalization and effectiveness as poised to drive an innovative wave across healthcare.
From a data standpoint, the healthcare industry produces and relies upon massive amounts of data from diverse sources. That creates a rich environment for applying AI and ML. The need for these technologies is there given the inefficiencies in the healthcare system. It is estimated that it takes more than eight years and $2 billion to develop a drug, and the likelihood of failure is quite high with only one of ten candidates expected to gain regulatory approval. AI, including generative AI, is among the technologies that have the potential to create safer, more efficacious drugs and to streamline personalized care.
The bottom line is we are in an exciting period when we are seeing the convergence of technology and healthcare two key economic sectors and we have to assume that out of this will come a wave of innovation.
What changes has AI already brought to the healthcare industry?
Some of the earliest uses of AI in healthcare were in diagnostics and devices, including areas such as radiology, pathology and patient monitoring. The PAPNET Testing System, a computer-assisted cervical smear rescreening device, back in 1995 was the first FDA-authorized AI/ML enabled medical device. In the 2000s, other authorizations involved digital image capture, analysis of cells, bedside monitoring of vital signs, and predictive warnings for incidents where medical intervention may be needed.
Big Tech companies have also been involved, stepping in as cloud solution providers and applying their technological expertise in areas such as wearable devices, predictive modeling and virtual care. One widely talked about achievement involved a deep learning algorithm that effectively solved the decades-old problem of predicting the shape a protein will fold into based on its amino acid sequences, which is crucial for drug discovery.
Where are we now in the integration of AI into the healthcare sector?
Despite all previous innovation, we are still in the early innings. While the promise of AI/ML in healthcare has been there for decades, we believe its role came into the spotlight during the Covid-19 pandemic response. AI helped companies develop Covid-19 mRNA vaccines and therapeutics at unprecedented speeds. Further, the Covid-19 pandemic underscored the need for digital solutions in healthcare to improve patient access and outcomes, and represented a key inflection point for telehealth and remote monitoring.
We believe that these successes further drove enthusiasm for the space as they showed a clear benefit of incorporating AI/ML and other technologies to improve patient outcomes at a much faster rate than would be expected with traditional methods.
What are some of the more promising AI-driven applications that could be coming to healthcare in the near future?
In our newest Byte-ology report, we outlined the technologies that could be transformative in healthcare, which include deep learning, cloud computing, big data analytics and blockchain. We also provided use cases across drug development, clinical trials, healthcare analytics, tools and diagnostics, and personalized care.
Heres one example: in drug development, AI/ML can be used to identify novel targets, design drugs with favorable properties and predict drug interactions to minimize the need for the costly traditional methodology of wet lab trial and error development.
Are there areas within health care that are more likely than others to benefit from AI?
Use cases for AI/ML can be found in virtually any segment of healthcare the difference is how much or how long it has been used in a given sector, how validated the use case is and how difficult new technological advancements would be to implement within the healthcare system. For example, there is a history of using AI tools for radiology and pathology, whereas many believe more hard evidence is needed to understand AI/MLs benefit in areas such as designing drugs, predicting patients most likely to respond to certain drugs and digitizing labs.
Even in sectors where its adoption is in the early stages, we believe that AI/MLs potential advantages will not be ignored, but rather closely studied and increasingly implemented over time. Uptake would greatly benefit from regulatory support, standardized benchmarks to evaluate performance, public forums to improve collaboration and transparency and, importantly, proof-of-concept via a demonstrated benefit to patients and healthcare professionals which we have started to see emerge.
What are the barriers or hurdles for AI in healthcare?
There are cultural obstacles, such as the healthcare industry relying on patents and exclusivity. That raises questions about how IP can be protected without slowing progress, or how information can be shared as it is in software engineering research that benefits from open-source data.
The hesitancy around AI/ML may further be exacerbated by the need for better surveillance systems to protect patients from hacking or breach events, the lack of continuing education for healthcare professionals on the benefits of these technologies and the concern that AI/ML models may be susceptible to bias as a result of historical underrepresentation embedded in training data.
Finally, some stakeholders may be taking a wait-and-see approach, remaining on the sidelines until firmer evidence of benefits being achieved emerges before investing in the resources necessary to incorporate these technologies.
Are there specific uses or benefits of generative AI in particular to healthcare?
Generative AI, including ChatGPT, presents myriad opportunities in healthcare such as synthetic data generation to aid in drug development and diagnostics where data collection would otherwise be expensive or scarce. Some examples here include the development of a model to produce synthetic abnormal brain MRIs to train diagnostic ML models, and the use of zero-shot generative AI to produce novel antibody designs that are unlike those found in existing databases.
Generative AI also can help in designs for novel drugs, repurposing of existing drugs to new indications and analyzing patient-centric factors such as genetics and lifestyle to personalize treatment plans.
ChatGPT specifically could be used to perform administrative tasks such as scheduling appointments and drafting insurance approvals to free up time for physicians, aid healthcare professionals by conveniently summarizing scientific literature, as well as improve patient engagement and education by answering patient questions in a conversational manner.It has also been suggested that ChatGPT could theoretically aid in clinical decision making, such as diagnostics, although it will likely take time for ChatGPT to build enough trustworthiness and validation for this application given the risk of hallucination, when the model outputs false content that may look plausible.
Whats the landscape for VC investment in healthcare AI and how does GS assess these companies?
VC funding continues to support and foster innovation both in early- and late-stage private biotech companies. In 2022, we saw VC funding into AI- and ML-powered healthcare companies remained elevated despite declining amid the market downturn and associated slowdown in VC funding. So far in 2023, amid recession risk and other headwinds, VC deployment in healthcare AI, as elsewhere, has slowed.
Because of the AI/MLs potential advantages in efficiency and effectiveness, how each company utilizes the armamentarium of available and rapidly expanding technologies is an important part of competitive differentiation. We take numerous factors into account when gauging competitive differentiation, such as the quality of the management team, the ultimate goal of the platform, the timeframe in which investors will understand whether this goal has been achieved and how the platform merges the available AI/ML toolkit with proprietary technologies to defend against emerging players.
This article is being provided for educational purposes only. The information contained in this article does not constitute a recommendation from any Goldman Sachs entity to the recipient, and Goldman Sachs is not providing any financial, economic, legal, investment, accounting, or tax advice through this article or to its recipient. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this article and any liability therefore (including in respect of direct, indirect, or consequential loss or damage) is expressly disclaimed.
Go here to see the original:
How Artificial Intelligence is Accelerating Innovation in Healthcare - Goldman Sachs
- Researchers create innovative verification techniques to increase security in artificial intelligence and image processing - European Research Council - April 29th, 2024 [April 29th, 2024]
- Who in Europe is investing the most in artificial intelligence? - Euronews - April 29th, 2024 [April 29th, 2024]
- 4 Artificial Intelligence (AI) Stocks Members of Congress Can't Stop Buying (and Nvidia Isn't 1 of Them!) - The Motley Fool - April 29th, 2024 [April 29th, 2024]
- The Standard Names Porter Orr Second Vice President of Artificial Intelligence Strategy and Development - NRToday.com - April 29th, 2024 [April 29th, 2024]
- Meet Nvidia CEO Jensen Huang, the man behind the $2 trillion company powering today's artificial intelligence - CBS News - April 29th, 2024 [April 29th, 2024]
- This Warren Buffett Dividend King Stock Just Invested $1.1 Billion Into Artificial Intelligence (AI) - The Motley Fool - April 29th, 2024 [April 29th, 2024]
- Joe Rogan Reveals What Could Be 'Game Over for the Human Race' - Newsweek - April 29th, 2024 [April 29th, 2024]
- LegalTech Artificial Intelligence Market to Soar to $6.4 Billion by 2028: Global Long-term Forecast to 2033 - Strategic ... - Yahoo Finance UK - April 29th, 2024 [April 29th, 2024]
- Artificial Intelligence Tokens Stumble Again! Is The AI Hype Over? - Coinpedia Fintech News - April 29th, 2024 [April 29th, 2024]
- CISA unveils guidelines for AI and critical infrastructure - FedScoop - April 29th, 2024 [April 29th, 2024]
- IBM's Webinar: Cybersecurity In The Era Of Artificial Intelligence Keynotes - AiThority - April 29th, 2024 [April 29th, 2024]
- Being and becoming a good doctor in the age of artificial intelligence - Firstpost - April 29th, 2024 [April 29th, 2024]
- Pope to take part in G7 summit in June to talk Artificial Intelligence - Crux Now - April 29th, 2024 [April 29th, 2024]
- Pope Francis to attend G7 summit to speak on artificial intelligence - Catholic News Agency - April 29th, 2024 [April 29th, 2024]
- 1 Unstoppable Artificial Intelligence (AI) Stock to Buy and Hold Forever - Yahoo Finance - April 29th, 2024 [April 29th, 2024]
- Pope to bring his call for ethical artificial intelligence to G7 summit in June in southern Italy - The Associated Press - April 29th, 2024 [April 29th, 2024]
- Elon Musk Called Tesla an Artificial Intelligence (AI) Robotics Company. Does That Make It a Buy? - The Motley Fool - April 29th, 2024 [April 29th, 2024]
- Emulating neurodegeneration and aging in artificial intelligence systems - Tech Xplore - April 29th, 2024 [April 29th, 2024]
- Pope Francis to participate in G7 session on AI - Vatican News - English - April 29th, 2024 [April 29th, 2024]
- A Once-in-a-Generation Investment Opportunity: 1 Bill Ackman Artificial Intelligence (AI) Stock to Buy Hand Over Fist ... - Yahoo Finance - April 29th, 2024 [April 29th, 2024]
- Tesla Stock Investors Cheer Progress on Its Artificial Intelligence (AI) Future - Yahoo Finance - April 29th, 2024 [April 29th, 2024]
- In Race to Build A.I., Tech Plans a Big Plumbing Upgrade - The New York Times - April 29th, 2024 [April 29th, 2024]
- A Baltimore-area teacher is accused of using AI to make his boss appear racist - NPR - April 29th, 2024 [April 29th, 2024]
- 3 Top Artificial Intelligence (AI) Stocks That Billionaires Jim Simons, Ray Dalio, and Israel Englander Are Buying - The Motley Fool - April 29th, 2024 [April 29th, 2024]
- The iPad Pro can give us a big surprise with its artificial intelligence chips. - Softonic EN - April 29th, 2024 [April 29th, 2024]
- This Artificial Intelligence (AI) Stock Could Soar 70%, According to Wall Street. Time to Buy? - Yahoo Finance - April 29th, 2024 [April 29th, 2024]
- Billionaire Bill Ackman Owns 8 Stocks -- and This Hypergrowth Artificial Intelligence (AI) Stock Isn't One of Them - The Motley Fool - April 29th, 2024 [April 29th, 2024]
- Artificial Intelligence Has Come for Our...Beauty Pageants? - Glamour - April 29th, 2024 [April 29th, 2024]
- 3 Stocks to Grab Now to Ride the Artificial Intelligence Chip Boom to Riches - InvestorPlace - April 29th, 2024 [April 29th, 2024]
- Is ASML's Big Sell-off a Warning Sign to Artificial Intelligence (AI) Investors? - The Motley Fool - April 29th, 2024 [April 29th, 2024]
- 3 Artificial Intelligence (AI) Stocks to Buy With $1,150 and Hold for Decades - Yahoo Finance - March 22nd, 2024 [March 22nd, 2024]
- This combines the power of artificial intelligence with human insights - finews.com - March 22nd, 2024 [March 22nd, 2024]
- Cohere Targets $5 Billion Valuation for ChatGPT Rival - PYMNTS.com - March 22nd, 2024 [March 22nd, 2024]
- IMF: Artificial Intelligence (AI) Will Transform 40% of Jobs. Can Investors Capitalize? - Yahoo Finance - March 22nd, 2024 [March 22nd, 2024]
- Cathie Wood Is Selling These 2 Artificial Intelligence (AI) Stocks. Should You? - Yahoo Finance - March 22nd, 2024 [March 22nd, 2024]
- iShares Robotics and Artificial Intelligence Multisector ETF (NYSEARCA:IRBO) Shares Acquired by Creative Financial ... - Defense World - March 22nd, 2024 [March 22nd, 2024]
- Inaugural Plenary Meeting of States Endorsing the Political Declaration on Responsible Military Use of Artificial ... - Department of State - March 22nd, 2024 [March 22nd, 2024]
- AMD Fell Today -- Is This a Chance to Buy the Artificial Intelligence (AI) Stock? - Yahoo Finance - March 22nd, 2024 [March 22nd, 2024]
- Artificial Intelligence (AI) Stocks Are Red-Hot, but Here's 1 to Avoid (for Now) - The Motley Fool - March 22nd, 2024 [March 22nd, 2024]
- A Once-in-a-Generation Investment Opportunity: 1 Artificial Intelligence (AI) Growth Stock to Buy and Hold Forever - Yahoo Finance - March 22nd, 2024 [March 22nd, 2024]
- 2 Artificial Intelligence (AI) Stocks That Could Go Parabolic - The Motley Fool - March 22nd, 2024 [March 22nd, 2024]
- Artificial intelligence will radically improve health care, but only if managed carefully - The Hill - March 22nd, 2024 [March 22nd, 2024]
- Tennessee Makes A.I. an Outlaw to Protect Its Country Music and More - The New York Times - March 22nd, 2024 [March 22nd, 2024]
- When Using Artificial Intelligence In Pharma R&D, Start With Identifying Problem To Solve - HBW Insight - March 22nd, 2024 [March 22nd, 2024]
- Why Super Micro Computer, Advanced Micro Devices, and Other Artificial Intelligence (AI) Stocks Tumbled on Tuesday - Yahoo Finance - March 22nd, 2024 [March 22nd, 2024]
- 3 Billionaires Are Selling Artificial Intelligence (AI) Stock Nvidia and Buying These 10 AI Stocks Instead - The Motley Fool - March 22nd, 2024 [March 22nd, 2024]
- Nvidia Just Bought 5 Artificial Intelligence (AI) Stocks. These 2 Stand Out the Most. - The Motley Fool - March 22nd, 2024 [March 22nd, 2024]
- UN adopts first global artificial intelligence resolution - ARMENPRESS - March 22nd, 2024 [March 22nd, 2024]
- This New Artificial Intelligence (AI) Chip Is a Massive Game Changer for Nvidia Stock - The Motley Fool - March 22nd, 2024 [March 22nd, 2024]
- Nvidia Led the First Phase of Artificial Intelligence (AI), but These 2 Growth Stocks Will Lead the Next Phases ... - The Motley Fool - March 22nd, 2024 [March 22nd, 2024]
- Meet Wall Street's Newest Stock-Split Stock, Along With the Artificial Intelligence (AI) Stock Likeliest to Follow in Its ... - The Motley Fool - March 22nd, 2024 [March 22nd, 2024]
- Amid Rumors of a Deal With Rivian, Apple Acquired This Artificial Intelligence (AI) Start-Up Instead - Yahoo Finance - March 22nd, 2024 [March 22nd, 2024]
- UN adopts first global artificial intelligence resolution - CGTN - March 22nd, 2024 [March 22nd, 2024]
- 1 No-Brainer Artificial Intelligence (AI) Stock to Buy With $25 and Hold for 10 Years - The Motley Fool - March 22nd, 2024 [March 22nd, 2024]
- 2 Artificial Intelligence (AI) Stocks That Could Make You a Millionaire - The Motley Fool - March 22nd, 2024 [March 22nd, 2024]
- Is Intel the Best Artificial Intelligence (AI) Semiconductor Stock to Buy Before It Skyrockets? - The Motley Fool - February 20th, 2024 [February 20th, 2024]
- The greater social implications of artificial intelligence - New Day NW - KING5.com - February 20th, 2024 [February 20th, 2024]
- AI comes to the world of beauty as eyelash robot uses artificial intelligence to place fake lashes - Fox News - February 20th, 2024 [February 20th, 2024]
- Beyer Appointed To Bipartisan Task Force On Artificial Intelligence - Falls Church News Press - February 20th, 2024 [February 20th, 2024]
- Why Did Nvidia Invest in These 5 Artificial Intelligence (AI) Stocks? Should You Buy Them, Too? - The Motley Fool - February 20th, 2024 [February 20th, 2024]
- Three key themes on artificial intelligence - Research Information - February 20th, 2024 [February 20th, 2024]
- How Artificial Intelligence is transforming consumerism - WFLA - February 20th, 2024 [February 20th, 2024]
- SAP names Philipp Herzig as chief artificial intelligence officer - CIO - February 20th, 2024 [February 20th, 2024]
- Unleashing the Power of Artificial Intelligence: Transforming Web-Based Applications for Enhanced Efficiency and User ... - Financialbuzz.com - February 20th, 2024 [February 20th, 2024]
- Koch Industries continues to accelerate its artificial intelligence initiative - The Business Journals - February 20th, 2024 [February 20th, 2024]
- Forget Nvidia: These 3 Artificial Intelligence (AI) Stocks Can Be the Next Stock-Split Stocks - The Motley Fool - February 20th, 2024 [February 20th, 2024]
- Artificial Intelligence for small business focus of upcoming JWCC Lunch and Learn on Feb. 28 Muddy River News - Muddy River News - February 20th, 2024 [February 20th, 2024]
- Opponents Highlight the Environmental Impact of Artificial Intelligence - News-Press Now - February 20th, 2024 [February 20th, 2024]
- Generative AI's environmental costs are soaring and mostly secret - Nature.com - February 20th, 2024 [February 20th, 2024]
- Chapter Summary: Genesis of Artificial Intelligence and a Scientific Revolution: 1950-1979 - EIN News - February 20th, 2024 [February 20th, 2024]
- What would Thomas Aquinas make of Artificial Intelligence? - ACI Africa - February 20th, 2024 [February 20th, 2024]
- ChatGPT Predicted Bitcoin Price Will "Skyrocket" - Cryptonews - February 20th, 2024 [February 20th, 2024]
- Worried About an Artificial Intelligence (AI) Stock Bubble? Consider This Billionaire Investor's Advice. - Yahoo Finance - February 20th, 2024 [February 20th, 2024]
- This Super Artificial Intelligence (AI) Stock Could Be at the Beginning of a Terrific Bull Run - Yahoo Finance - February 20th, 2024 [February 20th, 2024]
- 5 Artificial Intelligence (AI) Stocks That Could Make You a Millionaire - Yahoo Finance - February 20th, 2024 [February 20th, 2024]
- Will AI replace Colorado teachers? Here's what experts say. - The Colorado Sun - February 20th, 2024 [February 20th, 2024]
- Nvidia Could Be About to Counter a Big Artificial Intelligence (AI) Threat With This Move - Yahoo Finance - February 20th, 2024 [February 20th, 2024]
- The Healthiest U.S. Pharma Companies: Ranked by RealRate's Impressive Artificial Intelligence - Medium - February 20th, 2024 [February 20th, 2024]
- Down 84%, Is This Artificial Intelligence (AI) Stock a Buy After an Earnings Pop? - The Motley Fool - February 20th, 2024 [February 20th, 2024]
- 'AI for Humans' may be the most entertaining way to learn about artificial intelligence - Fast Company - February 20th, 2024 [February 20th, 2024]