A large venture capital firm focused on supporting early-stage health technology companies has a tip for AI startups targeting the health sector.
“The winners in this space will be those who can balance the methodical approach to healthcare innovation with the unprecedented speed of advances in AI,” the company says in a new report. “Success will come from delivering solutions that are both transformative and trustworthy, at a pace that matches the rapid evolution of technology. »
The company is Define Ventures, based in San Francisco. The report presents the results of surveys and interviews conducted with 63 leaders of provider and payer organizations.
Although the report is primarily aimed at healthcare AI providers, its analyzes should be of interest to executives of providers and payers who are or will invest in AI.
Among the key takeaways from the report:
1. A gap persists between AI ambition and adoption.
“With 53% of respondents saying AI is an immediate priority, it is clear that provider and payer executives recognize the near-term potential of AI to create a more efficient, scalable, and focused healthcare system. on the patient,” notes Define Ventures. More:
“Approximately 73% of organizations are increasing their financial commitments, indicating that payers and providers are moving from early pilot successes to enterprise-wide solutions. »
2. AI adoption is progressing along a predictable curve.
“Our research indicates that healthcare organizations are proceeding thoughtfully within their complex organizations while laying the foundation for responsible and effective adoption. »
“Payers and providers are progressing through three distinct phases in their AI adoption journey: 1.) Laying the foundation. 2.) Test and iterate. 3.) Go all out.’
3. Operational efficiency is a standard strategic objective.
Most healthcare organizations focus on projects that provide short-term gains in operational efficiencies, the authors note. “This sentiment reflects a pragmatic approach to balancing the visionary goals of AI with the realities of current organizational needs. »
“Provider and payer executives recognize that achieving rapid, practical results is critical to gaining buy-in, building credibility, and establishing a sustainable foundation for more transformative applications in the future.”
4. Build or buy is a common conundrum.
Determining the right buy or build approach for each element of an increasingly sophisticated technology stack involves weighing factors such as an organization’s internal expertise, IT infrastructure, need for customization and compatibility with existing workflows, data and tools, as well as definition reports.
“For many executives, the decision to build or buy is not simply a question of capacity; it’s a balancing act between what they could build and what they should build.
5. Trust, value and strategic alignment: qualities healthcare leaders value in industry partners.
For providers, the same factors that proved particularly challenging – ROI for their chosen use case (45%), workflow integration (38%), and data security and compliance ( 38%) – are the main considerations when evaluating AI vendors, according to the authors. find. Meanwhile, 86% of payers cite data security and compliance, followed by 38% for data access and ownership and similarly 38% for ROI for the specific use case.
“Only 39% of executives from both camps said they had achieved a fairly positive or even good return on investment with their external partners. And among those who had negative or neutral experiences, 87% said that over-promising and under-delivering from suppliers was a top reason for dissatisfaction.
The report is available in full for free.