ARTIFICIAL INTELLIGENCE IN HEALTHCARE MARKET ANALYSIS

Artificial intelligence (AI) refers to creation of unique systems with the help of algorithms and software that can perform certain tasks without human intervention and instructions. Artificial intelligence comprises integration of several technologies such as machine learning, natural language processing, reasoning, and perception. AI is used in healthcare for approximation of human cognition and analysis of complex medical and diagnostic imaging data. Artificial intelligence is primarily used in healthcare to analyze the relationship between treatment techniques and patient outcomes.

AI programs are deployed in medical practices such as diagnostic processes, drug development, personalized medicines, and patient monitoring. For instance, AI could aid in clinical processes by checking the vital signs, asking questions, and giving prescriptions to the patients. AI systems can also be used for alerts and reminders, image interpretation, information retrieval, and therapy planning during medical procedures. Deep learning technology is used for image recognition, signal recognition, and data mining, and is the most widely used form of AI technology.

Artificial Intelligence in Healthcare Market – Impact of Coronavirus (Covid-19) Pandemic

COVID-19 pandemic has accelerated the adoption of artificial intelligence in healthcare. AI-based tools and solutions can work quickly, and were deployed at large scale, as response to the COVID-19 crisis. All the AI driven devices are responding dynamically to the pandemic, from diagnosis and to treatment and combating new transmission. Technology giants such as Microsoft, Google, Apple, Amazon, and Facebook are involved in initiatives related to remote communication between patients and clinicians, contact tracing, and drug development, among others. With their wide reach, capabilities, and financial resources, these players are in a unique position to impact the U.S.’s fragmented healthcare system and capitalize on increasing demand for consumer tools such as monitoring applications that put patients in control of physician’s care.

The artificial intelligence in healthcare market is estimated to be valued at US$ 3,285.0 million in 2020 and is expected to exhibit a CAGR of 56.2% during the forecast period (2020-2027).

Figure 1. AI in Healthcare Market Share (%) Analysis, By Technology, 2020 & 2027

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Increasing application of AI in technologies utilized in the pharmaceutical industry is expected to boost growth of the artificial intelligence in healthcare market

Increasing application of artificial Intelligence (AI) technologies in areas ranging from pharmaceutical drug development to patient care is expected to drive growth of the artificial intelligence in healthcare market. Moreover, increasing number of collaborations among leading AI vendors and life science companies is expected to result in rapid introduction of AI in medical devices and drug development. For instance, in January 2018, Owkin France, a predictive analytics company, raised US$ 11 million in a Series A funding round, to develop artificial algorithms for speeding up drug development process. The company intends to use this fund in scaling up its innovative platform: OWKIN Socrates, cultivate high-value partnerships with leading healthcare organizations, and fuel internal growth.   .

Furthermore, pharmaceutical organizations can speed up the process of drug development, from drug discovery to commercialization, by using artificial intelligence. It can aid in development of personalized medicines. Moreover, it is increasingly being used in advanced disease management such as cancer diagnosis and treatment, as studies have suggested that artificial intelligence may detect breast cancer spread to lymph nodes.

For instance, in October 2017, researchers from MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL), Harvard Medical School, and Massachusetts General Hospital collaborated to apply AI in early detection and diagnosis of breast cancer. The model developed by these scientists correctly diagnosed 97% of the cases, in 335 high-risk lesions tested patients.

Artificial Intelligence in Healthcare Market – Restraints

Artificial intelligence (AI) is currently facing both technical and feasibility challenges that are unique to the healthcare industry such as there is no standard format or central repository of patient data in the U.S. For instance, when patient files are faxed, emailed as unreadable PDFs or sent as images of handwritten notes, extracting information is a challenge for AI. In various types of artificial intelligence (AI), such as supervised machine learning and deep learning, there is need for an enormous volume of data, which needs to be in standardized and labeled format. Moreover, the data must also be specific enough to be useful yet protect individuals’ privacy.

Artificial Intelligence in Healthcare Market – Regional Analysis

Increasing research and development activities in the field of artificial intelligence in healthcare has spurred growth of the market in North America region. For instance, in January 2018, the University of Massachusetts Amherst Center for Data Science partnered with Chan Zuckerberg Initiative (CZI) to fast-track healthcare research and development using artificial intelligence. Moreover, researchers from Wilfrid Laurier University and Waterloo University collaborated to study use of artificial intelligence for early detection of Alzheimer’s disease in January 2018.

Asia Pacific is expected to witness a significant growth in the market, which is attributed to increasing efforts undertaken by governments to support the artificial intelligence in healthcare market growth in this region. For instance, in October 2017, National Clinical Research Center for Cancer (NCRCC) in China signed a deal with the Institute of Computing Technology under the Chinese Academy of Sciences (CAS) in order to use artificial intelligence in the field of medical imaging. In July 2020, China Government launched a global medical artificial intelligence (AI) research platform at the World Artificial Intelligence Healthcare Conference in Shanghai.

Figure 2. Artificial Intelligence in Healthcare Market Value (US$ Mn) & Y-o-Y Growth (%), 2016-2027

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Artificial Intelligence in Healthcare Market - Competitive Landscape

Key players operating in the global artificial intelligence in healthcare market include IBM Corporation, Google LLC, Medtronic Plc, Koninklijke Philips N.V., Nvidia Corporation, Microsoft Corporation, iCarbonX, CloudMedx Inc., Atomwise Inc., and Next IT Corporation.