About 86 percent of healthcare provider organizations, life science companies and technology vendors are currently using artificial intelligence technology, and by 2020, these organizations will spend an average of $54 million on artificial intelligence projects, with investments primarily geared toward improving business operations, according to a Tata Consultancy Services Global Trends Study focusing on artificial intelligence and its impact on the healthcare industry.
So far, artificial intelligence investments have shown successful returns with cognitive technology-centered business areas generating a 14 percent increase in revenue while cutting operational costs by 10 percent, according to the study of 56 healthcare and life sciences companies, of which 19 are healthcare providers, 24 are pharmaceutical or biotech firms, 10 are medical device or medical product companies, and three provide other healthcare services or products.
The current average spend by healthcare companies on artificial intelligence is $38 million, the study said. Respondents envision new jobs from artificial intelligence projects to increase by 13 percent by 2025. For these new jobs, respondents predict companies will fill 58 percent with current employees and 42 percent with new hires, the study said.
Healthcare organizations feel strongly about the overall importance of artificial intelligence to competitiveness, with 14 percent calling it highly important and 41 percent calling it important, the study said. The key to artificial intelligence success among healthcare and life sciences companies will be the cultural issue, getting managers and employees to trust the advice that artificial intelligence is offering, respondents said.
“Health plans are very eager to adopt artificial intelligence as part of their overall IT strategy,” said Magna Hadley, global domain head of healthcare at Tata Consultancy Services. “Many have already begun to look at solutions to support operations using artificial intelligence and are including this in their planning process. While health plans are using artificial intelligence on a smaller scale today, the larger adoption right now in healthcare is with the vendors who support health plans.”