The biggest opportunities for healthcare AI and the hurdles that stand in the way: Bessemer report

Full Article

Bessemer Venture Partners released a report detailing the potential and challenges of healthcare AI. The report highlights a surge in AI-enabled healthcare startups, with 38% of digital health companies raising Series A funding in 2024 being AI-focused. It also notes a significant increase in FDA-approved AI/ML devices, indicating a growing acceptance of AI in healthcare.

The report identifies six key investment areas for AI in healthcare, including interactive systems and multimodal technologies. It emphasizes the importance of aligning business models with AI modalities to maximize revenue potential. Additionally, the report points out the need for innovative solutions in cybersecurity and data management to support the expanding role of AI in healthcare.

• 38% of digital health companies raised Series A funding in 2024 were AI-enabled.

• FDA-approved AI/ML devices increased fivefold from 2018 to 2023.

Key AI Terms Mentioned in this Article

Total Addressable Market (TAM)

In healthcare AI, many sub-verticals offer around $1 billion in TAM, presenting opportunities for specialized AI companies.

Generative AI

The report notes that 70% of payers and providers are pursuing generative AI implementation.

Multimodal AI

The report emphasizes the potential of multimodal AI for novel data analysis in healthcare.

Companies Mentioned in this Article

Bessemer Venture Partners

Bessemer's report outlines investment criteria and opportunities in healthcare AI.

Abridge

Abridge is highlighted in the report as an example of successful healthcare AI implementation.

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