Artificial Intelligence (AI) in Healthcare Market Updates

Global Artificial Intelligence (AI) in Healthcare Market size was valued at USD 20.0 billion in 2023 and is poised to grow from USD 27.46 billion in 2024 to USD 346.79 billion by 2032, growing at a CAGR of 37.3% during the forecast period (2025-2032).

To stay competitive in the Artificial Intelligence (AI) in Healthcare market, companies are focusing on integrating AI-driven diagnostic tools, personalized treatment platforms, and telemedicine solutions. Collaborations between healthcare providers and technology firms enhance innovation and broaden service capabilities. Emphasizing compliance with data privacy regulations such as HIPAA and adopting culturally sensitive approaches ensures trust and adherence to legal standards. Additionally, the incorporation of wearable devices and real-time patient monitoring improves patient engagement and care quality. These strategic efforts enable market players to deliver timely, effective healthcare solutions and maintain a strong presence in the rapidly evolving AI healthcare landscape.'Microsoft', 'Alphabet Inc.', 'NVIDIA Corporation', 'Oracle Corporation', 'Amazon Web Services Inc (AWS)', 'Koninklijke Philips NV', 'Johnson & Johnson', 'Medtronic', 'Siemens Healthineers AG', 'Cognizant Technology Solutions Corporation', 'Solventum Corporation', 'Sophia Genetics', 'Epic Systems Corporation', 'Tempus AI Inc.', 'Veradigm Inc.', 'Merative', 'Riverain Technologies', 'ConcertAI', 'Viz.ai, Inc.', 'GE HealthCare Technologies Inc.'

Healthcare data is expected to have an exponential growth curve - to over 10 zettabytes by 2025 - creating the demand for AI-enabled analytics. Traditional analytics will not be able to encompass the sheer volume and the complexity of data from EHR, medical imaging, genomics, wearables, and real-world evidence. AI will also enhance speed in diagnosis and predictive risk scores and personalized treatment decisions; an example is the Mayo Clinic and Google Health partnership that allows clinicians to improve early diagnosis of diseases. AI has also delivered 30% fewer hospital readmissions since it leverages predictive analytics. Digital health is seeing an increase of users forecast to top 1.3 billion by 2024 which will ultimately see an increase in data from AI-enabled wearables from Apple and Fitbit. AI will enable more efficiency in multiple ways, such as a reduced time to transition from the point of care to the billing process by 50%. AI will, in all, synthesize healthcare data into actionable insight that improves patient outcomes and the workflow of the healthcare operation.

Short-Term: Healthcare is witnessing rapid adoption of AI-powered diagnostic tools, especially in radiology and pathology. The urgent demand for faster, accurate diagnoses, driven by the COVID-19 pandemic, has accelerated investments in AI solutions supporting early disease detection and clinical decision-making. These tools reduce diagnostic errors and improve patient outcomes. Both startups and established companies are innovating rapidly to meet growing needs, accelerating AI integration at the frontline of healthcare delivery.

Why is Demand for Artificial Intelligence (AI) in Healthcare Fueling Growth in North America?