Citi analyst Adam Spielman believes that health care will become increasingly automated by artificial intelligence in the coming years. The market for AI-assisted diagnostic tools is expected to quadruple to US$4-billion in the next four years, benefiting a wide variety of companies including Microsoft Co., NVIDIA Corp. and the health care division of General Electric Co.
AI has been more accurate than human radiologists for a decade, according to Citi, and is challenging doctors’ skills in oncology and stroke recognition. The potential for AI in medical fields is vast. Microsoft, for instance, just paid US$20-billion for a company called Nuance that listens to doctor patient conversations and immediately creates clinical notes. Also, NVIDIA is developing AI that can analyze the function of protein molecules and DNA.
The proliferation of AI in health care faces opposition from doctors who fear being replaced and also patients. The British Association of Dermatologists is fighting the implementation of an AI-based triage tool. Also, a Pew Research survey found that 79 per cent of those surveyed did not want AI involved in mental health.
But it is also the case that wearable technology is expected to provide a gateway to AI acceptance in medical care by eventually providing functions like blood sugar measurement. Those concerned about racial bias in treatment are also likely to support more automation. Investors can expect the adoption of AI health care as a longer-term trend that will burn slowly. There’s no hurry to get exposure to the theme but investors should be on the lookout for opportunities in the coming years, because the rising costs of health care make the growth potential near-inevitable.This is the Globe Investor newsletter, published three times each week.
All the more reason to purge notes made by prejudicial doctors.