The launch of ChatGPT has changed how we think about artificial intelligence (AI) and made clear how powerful modern AI systems are. The implications for the new generative AI tools are vast and could disrupt a wide range of industries, including education, media, law, design, software programming, and more.
One industry ripe for disruption from AI is healthcare. Tech titans like IBM (IBM 2.23%) and others have already applied a wide range of AI and machine learning tools to improve things like diagnostics and patient outcomes and make healthcare more efficient. In this discussion of AI in healthcare, we'll examine its current state and explore several top uses.
Understanding AI
Understanding artificial intelligence
AI is generally understood as the ability of computers and machines to perform tasks that usually require human intelligence. The type of training involved falls under the umbrella of machine learning, or training computers so that they improve at a given task as they gain feedback.
One example is Meta Platforms (META 1.4%), which uses AI to screen images and texts for banned or inappropriate content. As the algorithm learns more about what social media content is desirable and what isn't, it gets better at selecting appropriate posts.
Another example is Netflix (NFLX 1.17%), which uses AI to make personalized recommendations. It gives viewers recommendations based on their past viewing history and movie ratings.
In healthcare, AI is used for a variety of functions, including diagnostics, early detection, drug discovery in pharmaceuticals, and the development of patient treatment plans. It's also used to improve patient outcomes in other ways.
Healthcare uses
Five uses for AI in healthcare
1. Precision medicine
One application of machine learning in healthcare is precision medicine. In precision medicine, AI is used to help predict the treatment regimens that will work best for individual patients based on their medical histories.
Treatments are customized for an individual patient rather than based on large-scale data. Precision medicine uses AI for genomics, predictive modeling, and diagnostic decision-making. It also uses natural language processing, another form of AI, to make sense of a broad range of data inputs, including clinical notes, blood tests, and drug responses.
Among the companies known for precision medicine are Roche (RHHBY -6.02%), Novartis (NVS -1.46%), and Johnson & Johnson (JNJ -1.53%). Johnson & Johnson, for example, has collaborated with Rest Devices to develop apps that track babies' sleeping habits and give them wearable tech that tracks health signals like body temperature and breathing.
2. Drug discovery
Drug discovery is another common use of AI in modern medicine. Today, a number of biotech companies are using AI to help streamline the drug discovery process and improve existing drugs.
Drug development yields large data sets. AI can help process those and assist in identifying and refining the target of the drug to make it more effective.
It can also help researchers scan available compounds to see which would work best to fight a particular disease. AI can assist during clinical trials as well, analyzing patient data and predicting outcomes based on different dosages and treatments.
One example of a company using AI for drug discovery is Bayer (BAYR.Y -1.57%), which has partnered with Exscientia (EXAI 4.59%) to use an AI-based algorithm to predict potential drug molecules. Exscientia also uses its AI drug discovery platform to create oncology candidates with Roche.
3. Medical diagnostics
Perhaps the most direct application of AI in healthcare is medical diagnostics. AI-powered software can analyze MRI and CT scans in real time, speeding up important patient feedback and helping doctors make better diagnoses. Identifying patterns is also key to early diagnosis of some diseases. AI can find patterns in patient data and genomes that could indicate a disease is present.
For example, Arterys has used AI to improve the diagnosis of heart defects in newborns and children. The company designed a system that uses deep-learning, cloud-computing graphics processing units (GPUs) to automatically measure ventricles, saving radiologists time and getting the information they need faster.
Demand for medical imaging diagnostics has become particularly acute, increasing by more than 10-fold at the Mayo Clinic from 1999 to 2010, going from 9 million to 94 million images, according to IBM. The number of images that required interpretation exceeded the number of radiologists available.
By interpreting those images, AI could help free up radiologists and other doctors to do work that must be done by humans, improving patient care as well. AI is also used to help doctors make better clinical decisions using the available data.
4. Robotics
Robotics may be the most vivid representation of AI right now. Today, industrial robots have become common, often doing basic jobs such as moving shelves. However, surgical robots have become more commonplace in the U.S. since they were approved in 2000.
Surgical robots help improve surgeons' abilities to see and make precise, minimally invasive incisions, apply stitches, and handle similar duties. Surgical robots are now commonly used in gynecologic surgery, prostate surgery, and head and neck surgeries.
Companies like Medtronic (MDT -0.7%) and Intuitive Surgical (ISRG 1.38%) make surgical robots used for procedures in areas such as gynecology, urology, and general surgery. In 2021, Medtronic performed its first procedure, a minimally invasive prostatectomy.
5. Early detection
Finally, early detection is also becoming a field in which AI has a meaningful impact. For example, AI is now used to better screen for diseases and improve prevention.
According to the American Cancer Society, mammograms can result in false positives in as many as 50% of cases. However, with AI, mammograms are now 99% accurate and can be processed 30 times faster.
Researchers at the Mayo Clinic also recently introduced an AI technology that improves early pancreatic cancer detection. The technology uses an AI model trained on diagnostic CT scans, and it was able to detect hidden cancers in pre-diagnostic scans as much as 475 days before their clinical diagnosis.
Is artificial intelligence the future of healthcare?
There's no question that healthcare is one of the many fields being transformed by artificial intelligence, and the implications for AI in the medical field are enormous. AI could potentially help lower prices for medical care by replacing human beings with machines in areas like robotics or medical imaging analysis.
AI should also help improve patient outcomes by making inferences that a human doctor might miss or recommending treatment plans. AI can even follow up with patients to make sure they follow their treatment plans as prescribed.
Related investing topics
Drug discovery also seems like an area where AI could unlock many benefits. Drug researchers deal with large amounts of data, and artificial intelligence has the ability to generate insights that humans might miss.
Of course, humans will always be needed in medical care. However, investors should expect AI applications in healthcare to continue to improve and proliferate as the underlying technology improves and patients and doctors begin to welcome the assistance.
With its ability to both cut costs and improve outcomes, the benefits of AI in healthcare are clear. Investors looking to take advantage of the opportunity should consider investing in AI stocks and exchange-traded funds (ETFs) or healthcare stocks since many of them are already working with AI technologies.
