Healthcare organisations are advancing widescale AI implementation though approaches and timelines diverge, finds a new report from BRG
More accurate diagnoses. Faster clinical trials for life-saving drugs. Personalised patient communications and treatment plans. Streamlined business functions. These and a myriad of other applications of artificial intelligence (AI) in healthcare exploded in 2023 amid the promise of higher valuations, lower costs, reduced burnout, and better health outcomes.
The emergence of generative artificial intelligence and continued proliferation of more mature AI technologies have extraordinary, transformative potential for the healthcare and life sciences industries. But while 75 per cent of professionals at healthcare organisations surveyed by Berkeley Research Group (BRG) believe AI-related technologies will be widespread within the next three years, only 40 per cent have reviewed regulatory guidance in preparing to implement the technology.
These are two of the key findings from BRG’s 2024 AI and the Future of Healthcare survey report, which draws on responses from 150 provider and pharmaceutical professionals— plus interviews with numerous experts— across a broad range of roles, including chief medical officers, heads of innovation, and digital transformation officers.
Challenges and opportunities
In addition to assessing healthcare leaders’ perceptions of the AI landscape and their timelines for adoption, the report takes up several significant AI-related challenges and opportunities. For instance, the unknown impact that Washington, DC, may have in setting specific industry guidelines could be cause for concern. Between President Biden’s October 2023 executive order setting AI safety and security standards and the Department of Health and Human Services’ transparency rule around the use of AI in health records, the government has shown a willingness to shape how AI is used in clinical settings.
AI opportunities, timelines, and risks also vary by organisation type. Pharmaceutical companies have trailed healthcare providers in this regard, as accurate results require large datasets and concerns relating to data privacy and cybersecurity remain prevalent. But healthcare providers also face notable challenges as AI plays a growing role in the healthcare delivery system— where organisations must weigh AI-related risks against the technology’s potential to streamline front-and back-office tasks through automation, as well as in diagnostics, decision-making, and care. Notably, improper usage of AI has the potential to expose patient data, raising ethical issues that providers must reconcile while keeping up with ever-evolving regulatory guidelines. However, on the provider front, generative AI has accelerated clinicians’ response times to patient messages, which have skyrocketed in volume in response to the expansion of virtual care.
“AI is no longer an academic discussion or a dinner topic,” says Tom O’Neil, JD-Managing Director BRG. “C-suites and boards of directors will have to identify which areas of AI will be the most impactful, understand implementation timelines and have the self-discipline to fund the education process around this swiftly-evolving technology.”
The survey questions covered a broad array of functional areas within the healthcare provider and pharmaceutical industries, including:
• Administration, such as finance, information technology (IT), human resources (HR), and legal
• Commercial and marketing
• Clinical trials
• Patient services
• Governance
• Supply chain and inventory management
• Drug discovery and design
• Drug manufacturing and quality control
So what does the future look like?
Three quarters of healthcare professionals believe AI-related technologies will be widespread within the next three years. However, differences in timelines projected by healthcare provider and pharmaceutical respondents reflect the diverse applications of AI—and the challenges of fully implementing the technology.
More than half the number of professionals from healthcare organisations—both providers and pharmaceutical companies—say that accuracy, data privacy, and data integrity are chief concerns in implementing AI. These findings come on the heels of new regulatory guidance from government agencies regarding AI and privacy, and the arrival of industry guidelines on AI compliance and ethical use.
Investors spent $31.5 billion in healthcare AI-related technology between 2019 and 2022, and these technologies are expected to fuel more investments, and influence valuations and market value for healthcare organisations moving forward. Recent research finds that wider adoption of AI could lead to savings of 5 to 10 per cent in US healthcare spending–roughly $200 billion to $360 billion annually in 2019.
Only four in ten overall respondents indicate their organisations are reviewing or planning to review AI regulatory guidance. Despite this, a majority remain confident about regulators’ abilities to develop adequate safeguards. “One of the concerns with AI is the collection of patient data and private information into the large language model,” says James McHugh MBA, Managing Director BRG. “Whether healthcare providers are using a closed or an open version of AI is important, as these AI tools may have a large impact on the potential for anonymous data to be reidentified.”
The report explores what can be done to prepare for forthcoming regulatory shifts and underscores the need to strike an appropriate balance in approach, so neither patient safety and privacy nor innovation are compromised.