The Impact of Artificial Intelligence (AI) on Health Care

The Impact of Artificial Intelligence (AI) on Health Care
  • Seventy-three percent of all health care organizations surveyed expect to increase their AI funding in 2020.
  • Making processes more efficient (34%) is the top outcome health care organizations are trying to achieve with AI.
  • Health care organizations reported their top AI risk concern is the cost of the technologies (36%).

Why this matters
While the pandemic has put a spotlight on the need for digital technologies such as artificial intelligence (AI), health care organizations were already experiencing some of their benefits prior to the crisis. “Deloitte’s 2020 State of AI in the Enterprise Study, 3rd Edition” by the Deloitte AI Institute and Center for Technology, Media and Telecommunications uncovered how organizations are adopting, benefiting from, and managing AI technologies by industry, including health care. While the “State of AI in the Enterprise” survey was conducted before COVID-19 significantly impacted the U.S., its findings are ever more relevant as health care companies look to reduce costs, increase product development and better engage with consumers in the “Age of With,” a world where humans work alongside machines to enable greater outcomes. The “Smart use of artificial intelligence in health care” report, launched today, summarizes key findings from that survey, and offers recommendations for how health care enterprises can gain immediate returns on investment and experience a competitive advantage over the longer term.

Investing in intelligence
Surveyed leaders agreed that health care organizations are investing, but the investments vary widely. However, most of the surveyed leaders believe that the actual payback period for their organization’s AI investments is in line with their expectations.

  • Seventy-five percent of large organizations (annual revenue of more than $10 billion) invested more than $50 million in AI projects/technologies.
  • Approximately 95% of mid-sized organizations (annual revenue of $5 billion to $10 billion) invested less than $50 million.
  • Seventy-three percent of all the organizations expect to increase their funding in 2020.

Efficiency first
AI has the potential to create new efficiencies in administrative processes and provide a precise and faster diagnosis and treatment plan for each patient, resulting in reduced length of stay, fewer subsequent readmissions, and reduced costs. When asked about the outcomes organizations are trying to achieve through AI, the top responses were:

  • Making processes more efficient (34%)
  • Enhancing existing products and services (27%)
  • Lowering costs (26%)

Rating the risks
Survey respondents pointed to poor-quality data, siloed data systems, high initial costs of AI solutions with low return on investment, and integrating AI into legacy systems as key concerns. The top worries were:

  • Cost of the technologies (36%)
  • Integrating AI into the organization (30%)
  • Implementation issues, including AI risks and data issues (28%)
  • When asked about ethical risks, respondents were most worried about safety concerns around AI-powered systems (28%)

Key quote
“Health care organizations willing to lean into AI adoption stand to gain many benefits, such as more cost efficiencies, faster speed to market and improved productivity. However, those positive outcomes have to balance the risks any new technology might introduce into their workflow. By identifying and managing these specific risks early, health care companies can enable faster and more consistent adoption of AI.”

-Dan Ressler, principal and U.S. advisory life sciences leader, Deloitte Risk and Financial Advisory, Deloitte & Touche LLP

Moving AI forward 
With investment in AI increasing, health systems and health plans should carefully plan so AI innovations complement their overall positioning and strategy. A few recommendations include:

  • Invest in a robust security and data governance strategy to manage AI’s unique risks.
  • Focus on investments that can ensure cost savings and prove ROI in order to then gain support for broader investments and bigger transformations.
  • Encourage stakeholders, including physicians, clinical staff, and administrative staff, to strive to be champions and promote an AI-augmented workforce.

For more information on the “Smart use of artificial intelligence in health care” report, visit https://www2.deloitte.com/us/en/insights/industry/health-care/artificial-intelligence-in-health-care.html.

Connect with us on Twitter at @DeloitteHealth.

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 7,000 private companies. Our people work across the industry sectors that drive and shape today’s marketplace — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthy society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Now celebrating 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s more than 330,000 people worldwide make an impact that matters at www.deloitte.com.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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