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AI in healthcare: 2024 stats explained

Is your health or wellness business on the verge of AI adoption, or are you just curious if AI is all hype or a game-changer? At Vention, we've gathered all essential statistics to help you understand AI's transformative power and impact in the healthcare industry.

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Table of contents:

AI healthcare market size and CAGR
Patient perspectives
Investment trends
Benefits
AI adoption use cases
Financial impact
Insights from healthcare providers
Market drivers for AI adoption
healthcare ai

What’s Vention, and why do we care about artificial intelligence in healthcare landscape?

Vention is a software development company with a wealth of AI and healthtech experience. For over 20 years, we've been crafting custom AI solutions like computer vision-based medical imaging, speech recognition, medical chatbots, virtual assistants, and machine learning-powered predictive analytics.

healthcare ai

We've teamed up with hundreds of healthcare giants, including Thirty Madison and K Health, so we always stay on top of the latest trends in the healthcare industry to offer extra value to our clients and readers. Use these AI statistics to make smarter strategic decisions, uncover innovation opportunities, and get ahead of the competition.

Healthcare AI fundamentals: market size and CAGR

First, let's dive into the current healthcare AI market and its future trends to set the stage for effective strategic decisions on market entry and investments.

Various sources offer slightly differing estimates of the current and projected market size for artificial intelligence in healthcare, but they all agree on one thing — the numbers are staggering.

Healthcare AI market size (in billion USD)

MarketsandMarkets
$20.9B
$20.9B

2024

$148.4B
$148.4B

2029

Sources: [1], [2], [3]

healthcare ai

A deeper look at AI adoption and application scenarios

Interested to know which field is the most promising in the healthcare market? Here are the facts:

$0.9B
Market size
$0.9B
Market size
2023
$4.9B
Expected market size
CAGR +40.2%
$4.9B
Expected market size
CAGR +40.2%
2028

AI in drug discovery

Of all AI application scenarios, drug discovery dominated the healthcare market in 2023 with a share of 28.1 percent. The market size was estimated at $0.9 billion, and it is expected to reach $4.9 billion by 2028, growing at a CAGR of 40.2 percent during the forecast period. [6] [7]

As of January 2024, approximately 80 percent of pharmaceutical and life sciences professionals use AI in drug discovery. [2]

AI technology can significantly reduce the time (from five or six years to just one year) pharmaceutical companies require to discover new drugs. Also, AI promises a potential cost reduction of up to 70 percent and an economic value of $60 billion to $110 billion a year for the pharma and medical-product industries. 

The latter is mainly possible because AI can accelerate the identification of compounds for potential new drugs, speed their development and approval, and improve how they are marketed. [2] [8] [9]

 

Medical devices

As of May 2024, the FDA approved 882 devices powered by artificial intelligence and machine learning. The top five application areas are radiology (671 devices), cardiovascular (90), neurology (32), hematology (17), and gastroenterology-urology (13). [10]

Number of AI/ML-enabled medical devices approved by the FDA

Total accumulated
11
11

before
 2010

13
13

2010

15
15

2011

18
18

2012

21
21

2013

27
27

2014

33
33

2015

51
51

2016

77
77

2017

141
141

2018

221
221

2019

332
332

2020

461
461

2021

616
616

2022

837
837

2023

882
882

Q1’24

Other AI applications

  • In 2023, 53 percent of global AI drug discovery companies were based in the US.
  • Half of the 50 largest pharmaceutical companies have partnered with or licensed agreements with AI companies (think Novartis and Microsoft, Sanofi and Aqemia). 
  • The healthcare chatbots market was valued at $116.9 million in 2018 and is projected to reach $345.3 million by 2026, at a CAGR of 14.5 percent.
  • The virtual assistants market segment is expected to grow at a 44.2 percent CAGR from 2024 to 2030.
  • The AI in the healthcare market is split into two segments: software (81.25 percent, valued at $11.7 billion) and services (18.75 percent, valued at $2.7 billion). 
  • The virtual nursing assistant AI application market is estimated to reach $20 billion by 2026.

Sources: [6], [11], [12], [13], [14], [15]

healthcare ai

AI through the eyes of healthcare providers: experiences and expectations

94 percent of healthcare companies report using artificial intelligence/machine learning in some capacity.

However, about 70 percent of health system respondents believe AI will have a greater impact on their organization, shifting AI strategies from the IT department to the C-suite. This aligns with the fact that 80 percent of US healthcare providers are accelerating spending on IT and software, with AI being a top priority.  [16], [17]

The 201 US healthcare provider executives surveyed in June 2023 have mixed feelings toward AI — from fear, concern, and caution to neutral, optimism, and excitement. The highest percentage of positive sentiment (53 percent) among this broad spectrum of emotions is attributed to academic medical centers, followed by health systems and hospitals (40 percent). Freestanding hospitals show the lowest percentage of positive sentiment (24 percent). [17]

Percentage of positive sentiment
(neutral, optimism, excitement)

Percentage of negative sentiment
(fear, concern, caution)

Health systems and hospitals

Percentage of positive sentiment
(neutral, optimism, excitement)

40 percent

Percentage of positive sentiment
(neutral, optimism, excitement)

60 percent

Academic medical centers

Percentage of negative sentiment
(fear, concern, caution)

53 percent

Percentage of negative sentiment
(fear, concern, caution)

47 percent

Other national and regulated health systems

undefined

36 percent

undefined

64 percent

Freestanding hospitals

undefined

24 percent

undefined

76 percent

Key barriers to AI adoption identified by respondents include unclear benefits, regulatory and legal considerations, clinical risk, and lack of technical experience.

Voices of patients: The impact of AI in healthcare

The Outbreak Near Me survey of 3,317 US adults conducted in May 2023 reports that nearly one-third (32 percent) of people are comfortable with artificial intelligence leading a primary care appointment, although fewer (25 percent) would be comfortable with AI-led therapy. [18]

Twelve percent of adults in the US say their healthcare providers currently use AI to help diagnose, treat, or communicate with patients, but 66 percent expect AI to play a bigger role in healthcare in the next five years. [18]

healthcare ai

Another survey of 1,000 respondents conducted in June 2023 shows that eight in 10 Americans believe that AI has the potential to improve the quality of healthcare, reduce healthcare costs, and increase accessibility to healthcare.

The top three positive effects named are increased efficiency (63 percent), cost savings by automating tasks (56 percent), and improved diagnosis and treatment (53 percent). [19]

healthcare ai

The same survey reports that 25 percent of Americans would not visit a healthcare provider who refuses to embrace AI technology. They believe that AI brings faster medical care (52 percent), reduces risks of human error in medical decision-making (47 percent), enables remote access to healthcare (42 percent) and more accurate diagnoses (42 percent). 

Interestingly, the Pew Research Center survey conducted in December 2022 with a panel of 11,000 respondents showed that 60 percent of Americans would feel uncomfortable if their healthcare provider relied on AI in their medical care to diagnose diseases and recommend treatments. [20]

What’s more, the public was unconvinced that the use of AI in healthcare would improve health outcomes: only 38 percent expected better results, while 33 percent expected worse results and 27 percent thought it wouldn't make any difference. [20]

Are we seeing a shift from negative to mixed (and even positive) feelings about AI solutions for healthcare? It's too soon to tell, but if a change is happening, we're just at the starting line.

Benefits of AI in healthcare

Potential for reducing emergency room visits and hospitalizations by 79.2 percent and healthcare workers’ errors by 86 percent. [21] [22]

Increased share of physicians' time spent on treating patients: from 50 percent before AI implementation to 67 percent after AI implementation. [23] 

Potential to save 250,000 lives by 2030 — a forecast based on the expectations that AI solutions for healthcare can eliminate 86 percent of errors made by healthcare workers. [21] 

A study involving 80,000 women found that AI helped healthcare workers detect 20 percent more cases of breast cancer, while also avoiding an increase in false positives and reducing doctor workloads by 44 percent. [24]

Financial impact

Wider adoption of AI could lead to five to ten percent savings in US healthcare spending. [25]

AI applications could cut annual US healthcare costs by $150 billion in 2026.

Other forecasts suggest that wider AI adoption could generate savings of up to $360 billion annually — approximately 10 percent of the country’s healthcare spending. [8] [26]

Utilizing AI to diagnose could save up to 50 percent on treatment costs while improving health outcomes by up to 40 percent. [27]

AI can potentially reduce drug production costs by $70+ billion by 2028. [21]

healthcare ai

Market drivers for AI adoption

AI in healthcare is booming due to four key factors: a critical shortage of medical staff, widespread burnout among healthcare professionals, an aging population, and the explosive increase in health data.

15M
The global shortage of health workers
15M
The global shortage of health workers
2020
10M
The global shortage of health workers
10M
The global shortage of health workers
2030

Lack of medical staff

In 2020, the global shortage of health workers was estimated at 15 million. In 2024, 77 percent of health leaders report care delays, even in emergency departments, due to staff shortages. The World Health Organization projects a shortfall of 10 million health workers by 2030. [28] [29] [30]

This global trend is mirrored regionally with grim forecasts [4]:

  • US: 87 percent of healthcare providers list staffing shortages as their biggest challenge. Over 5 million medical workers left their jobs during the COVID-19 pandemic. By 2026, more than 6.5 million are expected to leave, with only 1.9 million replacements, creating a deficit of over 4 million health workers.
  • EU: The region will need an additional 1.6 million care workers by 2050.
  • Britain: The National Health Service is understaffed by 154,000 full-time workers, and if current trends continue, that figure could rise to 571,000 by 2036.
  • Japan: The Land of the Rising Sun needs 960,000 health and welfare workers by 2040.

 

How can AI help mitigate the medical staff shortage, you ask?

By automating routine tasks like data entry and documentation, facilitating diagnostics, enabling remote patient monitoring, and assisting in clinical decision-making, such as medication dosage calculations.

47%
of physicians with identified signs of burnout
47%
of physicians with identified signs of burnout
2021
53%
of physicians with identified signs of burnout
53%
of physicians with identified signs of burnout
2023
66%
of physicians with identified signs of burnout
66%
of physicians with identified signs of burnout
2024

Medical staff burnout

The shortage of medical workers and rising workload are closely linked, leading to higher burnout rates.

Burnout rates are soaring: 53 percent of physicians showed signs of burnout when assessed in 2023, up from 47 percent in 2021 and a jump of 26 percent since 2018. Bureaucratic tasks and administrative burdens are by far the main drivers of burnout. [28]

In 2024, nearly two-thirds (66 percent) of healthcare leaders report increased burnout, stress, and mental health issues in their workforce, along with deteriorating work-life balance and reduced morale and engagement. [29]

The growing amount of medical data

The global healthcare sector generated more than 2.3 zettabytes (2.3 trillion gigabytes!) of data worldwide in 2020, and this healthcare data explosion is expected to exceed 10 zettabytes by 2025. [4] [31]

The US market for interoperable clinical data alone is expected to almost double by 2026, growing from $3.4 billion in 2022 to $6.2 billion. [4] 

Handling even the current data volume becomes impossible without powerful technology, AI is exceptionally useful in tackling this challenge. AI helps process vast amounts of data and extract insights humans usually cannot see. It can recognize patterns in data from wearables, lab results, and EHR records and even process X-rays and other medical images with computer vision to spot anomalies.

2020
2.3 zettabytes

Volume of healthcare data

2.3 zettabytes

Volume of healthcare data

2025
10 zettabytes

Volume of healthcare data

10 zettabytes

Volume of healthcare data

Population aging

The 65+ population is skyrocketing. Globally, their percentage is expected to jump from 10 percent in 2022 to 16 percent by 2050.

By 2030, one in six people worldwide will be aged 60 or over, with the number of people aged 60 and above increasing from 1 billion in 2020 to 1.4 billion. [32] [33]

2022
10%

65+ population share

10%

65+ population share

2050
16%

Expected 65+ population share

16%

Expected 65+ population share

Eighty years is the average life expectancy in Belgium, Denmark, and Finland. The number of people aged 80 or older is projected to triple between 2020 and 2050, reaching 426 million. [4] [33]   

As the population ages, the need for enhanced healthcare to boost quality of life and manage chronic diseases intensifies, compounded by a shortage of medical staff.

A note from Vention

Eugene Kruglik

Healthcare Development Expert

A note from Vention

Like any game-changing idea, AI shakes things up and brings major shifts. It’s natural for it to stir up a mix of emotions, from fear and concern to optimism and excitement.

At Vention, we’re enthusiastic about AI’s potential in healthcare and the benefits it can offer. We also recognize the concerns it raises and address them with care and diligence in our projects. By constantly monitoring the field, we regularly share the latest insights with prospects, clients, and readers, helping them make informed decisions and infuse their care with the know-how to harness AI effectively and responsibly.”

healthcare ai

Check back often — we’ll be updating this page regularly.

In the meantime, if you’re craving more AI adoption trends across other industries, check them out here.
Explore more

List of sources

Sources

  1. Artificial AI in Healthcare Market, MarketsandMarkets
  2. AI in Healthcare Market Size & Trends, Grand View Research

  3. Artificial Intelligence in Healthcare Market, Fortune Business Insights

  4. Deloitte 2024 Global Health Care Sector Outlook

  5. The Future Tech Index 2023, Philips

  6. Artificial Intelligence in Healthcare Market, Global Market Insights

  7. AI in Drug Discovery Market, MarketsandMarkets  

  8. Accelerating Drug Discovery and Development, Deloitte

  9. Generative AI in the pharmaceutical industry: Moving from hype to reality, McKinsey & Company

  10. Artificial Intelligence and Machine Learning (AI/ML)-Enabled Medical Devices, Food and Drug Administration

  11. AI in the pharmaceutical industry – statistics & facts, Statista

  12. Pharma AI Readiness Index: Who’s best-positioned for the AI boom?, CB Insights 

  13. Healthcare Chatbots Market Outlook – 2026, Allied Market Research

  14. Global AI In Healthcare Market Size & Outlook, 2023-2030, Horizon Grand View Research

  15. Forecasted value of potential annual benefits of AI applications in healthcare worldwide in 2026, by AI type, Statista

  16. How Artificial Intelligence Could Reshape Health Care, Morgan Stanley

  17. 2023 Healthcare Provider IT Report: Doubling Down on Innovation, Bain & Company

  18. Survey: 1 in 3 patients comfortable with AI-led primary care, Healthcare IT news

  19. Perceptions of AI in healthcare: What professionals and the public think, The Intake

  20. 60 percent of Americans Would Be Uncomfortable With Provider Relying on AI in Their Own Health Care, Pew Research Center

  21. How AI in Healthcare could Save over 250,000 Lives Each Year and become a $188 Billion Market by 2030, the Journal of mHealth

  22. Clare Medical’s Artificial Intelligence Diagnostic Tool Reduces ER Visits and Hospitalizations by 79.2 percent in Recent Large-Scale Trial

  23. AI in healthcare - statistics & facts, Statista

  24. AI-supported mammogram screening increases breast cancer detection by 20 percent, study finds, CNN Health

  25. The Potential Impact of Artificial Intelligence on Healthcare Spending, National Bureau of Economic Research

  26. The rise of artificial intelligence in healthcare applications, National Library of Medicine

  27. AI in Healthcare Market Size, Trends and Future Analysis Report (2024–2032), Towards healthcare

  28. Healthtech guide

  29. The Future Tech Index 2024, Philips

  30. Health workforce, World Health Organization

  31. How Healthcare Organizations Can Transform—and Become Data Driven, Forbes

  32. Ageing, United Nations

  33. Ageing and health, World Health Organization

  34. Q1 2024 digital health funding: Great (reset expectations), RockHealth 

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