Healthcare incumbents, big tech, and startups alike are using AI to address key pain points in clinical workflows. We break down the fast-growing market for ambient AI solutions in healthcare.
What you need to know:
- Ambient AI is reducing clinician burnout by autonomously documenting clinical interactions. Physicians are already reporting benefits such as being able to see more patients each month.
- Strategic partnerships, like that between Abridge and Kaiser Permanente, are driving large-scale adoption.
- Tech giants like Microsoft and Oracle are entering the space, making ambient AI a key part of their health IT offerings.
Ambient AI — tech that autonomously monitors and reacts to changes in an environment — could be key to addressing the widespread issue of clinician burnout, which costs the US healthcare system an estimated $4.6B annually.
On average, physicians spend nearly 2 hours each day documenting patient encounters outside of normal office hours. This quickly adds up: In 2019, it’s estimated US physicians spent a collective 125M hours on after-hours documentation, per a study published in JAMA. Using ambient AI to capture and document doctor-patient conversations could go a long way in reducing that.
Earnings call mentions of ambient AI in healthcare are trending up, reflecting growing industry interest.
Source: CB Insights — earnings call mentions of ambient AI and related terms in healthcare
The heightened attention has already translated to M&A activity. Nearly half of digital health acquisitions this year have involved AI companies, with multiple deals focusing specifically on AI for medical documentation, such as Commure’s acquisition of Augmedix and Stryker’s purchase of care.ai.
As the space takes off, 3 key trends are emerging:
- Strategic partnerships in ambient AI are fueling market growth and adoption
- Tech giants are developing or acquiring ambient AI capabilities
- Startups are leveraging integrations to compete with larger players
Below, we break down each trend, as well as what’s next.
Strategic partnerships driving market growth
Healthcare systems and tech companies are forming alliances to accelerate ambient AI adoption.
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