One of the hottest stocks in healthcare in 2023 is also one of the newest. Shares of GE HealthCare Technologies (GEHC -0.56%) have soared more than 20% year to date. The business was officially spun off from its parent, General Electric, on Jan. 4, 2023.

GE HealthCare calls itself "a leading global precision care innovator" -- a vague description that encompasses a lot. But perhaps the most intriguing arena in which the company is staking its claim is artificial intelligence (AI). Is GE HealthCare a no-brainer AI stock to buy right now?

More AI than meets the eye

Several companies probably come to mind when you think about AI stocks. I suspect GE HealthCare isn't one of them. However, there's more AI to GE's new spin-off than meets the eye.

Indeed, GE HealthCare is making such a big splash in AI that The Wall Street Journal ran an article last week about the company's "push into artificial intelligence." One example of this push is the recent hire of Taha Kass-Hout as chief technology officer. Kass-Hout previously served as Amazon's vice president of machine learning and chief medical officer.

While bringing Kass-Hout on board underscores GE HealthCare's commitment to AI, the company's focus on the technology isn't new. As a case in point, GE HealthCare CFO Helmut Zodl noted on the fourth-quarter conference call in January that the company has already achieved significant success using deep learning to improve image quality in its AIR Recon DL system used with MRI scanning.

GE HealthCare has also launched other AI-powered products in recent years, including the VIVID Cardiac ultrasound systems that use AI to assess heart muscle function and Critical Care Suite 2.0, which uses AI algorithms in mobile X-ray devices.

Earlier this month, GE HealthCare announced that it's acquiring privately owned Caption Health for an undisclosed amount. Caption Health is a leader in using AI in ultrasounds to detect diseases at early stages.

Some challenges

GE HealthCare's previous and current AI efforts are impressive. This year could be shaping up to be a better year for the company than 2022. However, GE HealthCare faces some challenges investors shouldn't ignore.

Supply chain issues that plagued the company last year have eased somewhat. But they haven't gone away completely. As GE HealthCare CEO Peter Arduini noted on the Q4 call, the improved situation isn't the same as in "the good old days."

The COVID-19 pandemic could also still present headwinds for the company. China has relaxed its Zero COVID policy. If the country experiences a huge surge in cases, though, it would almost certainly hurt GE HealthCare's sales.

Perhaps the biggest risk for the company, however, is the potential for a recession in the U.S. that could spread to other regions. Healthcare providers could cut their capital spending budgets during an economic downturn.

Brainpower required

These are all short-term challenges for GE HealthCare. The company's outlook over the long run appears to be good. And its focus on AI could provide competitive advantages that boost those long-term prospects. However, calling GE HealthCare a no-brainer AI stock to buy right now is a stretch. Brainpower is definitely required in evaluating the stock.

For one thing, the company projects organic growth in 2023 of only 5% to 7%. While GE HealthCare maintains that that reflects "strong" revenue growth, that's not the description most investors would probably use.

In my view, the main drawback with GE HealthCare is that there are too many other stocks (including those focused on AI) that offer better growth prospects. I don't believe GE HealthCare is a bad pick for long-term investors, but I do think there are better alternatives.