Artificial intelligence or AI a branch of science related to the development of computer systems capable of performing cognitive functions or tasks that normally require human intelligence (ability to mimic human behavior). Artificial intelligence depends on analytical models and digital inputs in the form of enormous and incessantly flowing streams of data. The Artificial intelligence models speedily crunch the huge amount of data and spew out insights with an uncanny human intelligence. Some of the Artificial intelligence frameworks use deep learning and machine learning to create a loop of automated self-learning and uninterrupted development. Artificial intelligence driven technologies are anticipated to be the next wave of disruption to the enterprise software. Currently, the penetration of Artificial intelligence has smack almost every industry sector. On the software side, there will be more sophisticated Artificial intelligence based platforms in the coming years and there is a technology trend towards platforms becoming open-sourced. Today Artificial intelligence is generally known as narrow or weak AI, in which it is intended to execute a narrow task (e.g. only facial recognition or internet searches or driving a car). The state of real Artificial intelligence has not reached yet, however narrow AI is already present in cars, Google searches, and Amazon suggestions and in many other devices.
Artificial intelligence the smart, cognitive devices have penetrated extensively across all industries, but healthcare industry is expected to outgrow all other industries. Artificial intelligence has been extensively used in patient care and diagnostic systems all the way from drug discovery to personalized treatment. Artificial intelligence in healthcare and medicine could organize patient routes or treatment plans better, and also provides healthcare professionals with literally all the information they need to make a good decision. The biggest bets are on improving patient outcomes, reducing healthcare costs and reducing time-to-market in drug discovery. Healthcare industry business model has revolutionized from historic and evidence-based care to real-time outcome based care and moving towards predictive and preventative care model. Currently real-time outcome based care model used to develop advanced medical platforms like wearable’s or biosensors, mHealth, big data and health analytics and internet of medical things (IoMT) to deliver services to key stakeholders such as physicians, patients, and payers. Major types of services provided were Product-as-a-Service, Data-as-a-Service, Platform-as-a-Service and Managed services. Now the healthcare organizations are focusing on predictive and preventative care model to develop medical solutions like Artificial intelligence, augmented reality and robotics to provide services like insights, automation, and robotics.
Major portion of the investment in Artificial intelligence in the healthcare industry is comprised of internal spending i.e. R&D and deployment by large high techs companies such as Apple, Google, and Amazon. Khosla Ventures and Data Collective are the top VC investors in healthcare AI startups and have backed 5 unique companies each. Total Artificial intelligence startups funded in 2016 was 550 in number and total funding value was USD5 billion, up from USD589 million in 2012. Total AI startup funding in last five years was USD12.45 billion
The global Artificial intelligence market is projected to reach approximately USD139 billion by 2027 from USD8.2 billion in 2013 at a growth rate of 40 percent over the period 2017 to 2027. Advancements in image and voice recognition technology are critical to offering enhanced drones, self-driving cars, and robotics, thus promoting the expansion of the Artificial intelligence market. Global investment for Artificial intelligence has come from three major different sources which are the direct investment by industrial and IT companies, acquisition and development of established small AI companies and by venture capital funding of AI startups. In 2016, the overall global investments in Artificial intelligence were more than USD5.0 billion, an increase by more than 60 percent over 2015. In 2015, the investments are estimated to be roughly USD3.1 billion or 6percent of total venture capital (VC) investments that totaled USD55 billion in 2015.
There have been 34 merger and acquisitions deals in first quarter of 2017 alone. Since 2012 more than 200 private Artificial intelligence companies have been acquired. In 2014 and 2015 alone, eight major global tech firms acquired 26 AI developing companies totaling deal value worth USD5 billion. Around 62 percent of all deals have been occurred in the US Artificial intelligence market decreased by 17 percent from 79 percent in 2012. Deep learning, which attempts to replicate the workings of the layers of neurons in the human brain, is a breakthrough in the 50-year history of Artificial intelligence. Deep learning is the largest revenue segment, estimated to worth about USD8.6 billion in 2017. Systems based on deep learning are already doing better than radiologists and existing algorithms in a variety of diagnostic tasks. The North American region dominates the global Artificial intelligence market through its leadership in machine learning and due to the availability of high government funding, the presence of leading players, and strong technical base. Right now, approximately 1,500 companies in North America are developing AI applications including leading companies such as Microsoft, IBM, Google, and Amazon. Other key markets of Artificial intelligence are Japan, Europe, and China.
The use cases of Artificial intelligence that are attracting the most of the investment in 2016 are automated customer service agents, quality management investigation, and recommendation systems, diagnosis and treatment systems, fraud analysis and investigation.
Artificial intelligence in the healthcare market is a relatively new market with huge growth potential due to easier integration, will see a remarkable growth of almost 40 percent in the period span of 2017 to 2027 and is expected to reach USD50 billion by 2027. Increasing use of big data in the healthcare industry, ability of Artificial intelligence to deliver advanced care-related information to physicians to make informed decisions to personalized real-time treatment, improve patient outcomes, improve imbalance between health workforce and patients, reducing the healthcare costs and noteworthy increase in venture capital investments are anticipated to drive the Artificial intelligence in healthcare market. The number of healthcare-focused Artificial intelligence deals went up from less than 20 in 2012 to nearly 70 by mid-2016. The main reasons for Artificial intelligence slow adoption are the high cost involved in research, the security concerns involved in opening up extensive databases, and misconceptions or errors in coming to quick conclusions. In addition to it, lack of standard regulations and guidelines and reluctance among healthcare professionals to adopt AI-based technologies are expected to hamper the market growth. The pursuit for ideal AI solutions in healthcare looks promising due to growing big data analytics applications in healthcare and increasing volume of healthcare data to perform data mining and improving the speed and quality of care from diagnosis to prognosis.
Drug discovery held over 35 percent of the global artificial intelligence market share and is anticipated to witness more than 40 percent growth rate over the period 2017-2027. More than 86 percent of all healthcare spending is aimed at treating chronic diseases; Artificial intelligence technology could considerably change doctor-patient relationships. Artificial intelligence in healthcare has the potential to improve health outcomes by 30 percent to 40 percent whereas reducing healthcare costs by as much as 50 percent. The top three AI health applications that correspond to the maximum near-term value are robot-assisted surgery, virtual nursing assistants and administrative workflow assistance with market valued of USD40 billion, USD20 billion and USD18 billion respectively. The top three AI health applications that correspond to the maximum near-term value are robot-assisted surgery, virtual nursing assistants and administrative workflow assistance with market valued of USD40 billion, USD20 billion and USD18 billion respectively. Cognitive robotics can integrate information from pre-op medical records with real-time operating metrics to physically guide and enhance the physician’s instrument precision. AI can save 20 percent of nurse’s time by avoiding unnecessary visits, which help the healthcare workers to focus more on care reach, institutional readiness, security, and workforce.
The US is leading in Artificial intelligence in healthcare market followed by Europe. The US health Artificial intelligence market was USD625 million in 2016 and is expected to reach USD16.9 billion by end of 2027, with a growth rate of 36 percent over the next ten years. Artificial intelligence can save USD300 billion in the US market using machine learning tools for population health forecasting. In 2016, Europe healthcare artificial intelligence industry was valued at USD270 million in 2016, is projected to reach USD9330 million with a growth rate of 39 percent over 2017-2024 subject to rising utilization of AI technology by various firms to improve the healthcare treatment along with its cost-reduction. The UK healthcare artificial intelligence market is anticipated to cross the revenue margin of USD800 million by 2024 and will further boost the Europe industry size over the forecasted period. Australian Artificial intelligence market was USD27 million in 2016 and is expected to reach USD44 million in 2017 and is projected to grow at a rate of 58 percent to reach USD4.2 billion in 2027. Artificial intelligence in the healthcare market is expected to grow in Australia due to lack of proper healthcare services and the high burden of chronic diseases.
The growth of global Artificial intelligence market is directly correlated with prevailing economic conditions across the globe. The rising level of disposable income has propelled the spending trends on healthcare. In addition, the improving global economy is expected to take a step further in the years ahead and catalyzed the growth of AI in healthcare industry. Artificial intelligence in the healthcare industry is expected to bring down the healthcare costs by 5 percent to 9 percent by using machine learning to tailor treatments and keep patients engaged, i.e. approximately USD2 trillion to USD10 trillion savings globally by tailoring drugs and treatments and 0.2 to 1.3 additional years of average life expectancy. The development of more advanced and affordable cloud computing infrastructures has a huge impact on the growth potential of Artificial intelligence. Adoption of AI in healthcare is increasing due to availability of massive amounts of data due to growth of digital devices and electronic patient records. Healthcare industry is now recognizing the value of existing and new data sources and utilizing in developing actionable insights. Voice assistants and voice-enabled devices are trending these days and offer the significant advantage to increase patient engagement, improve outcomes and reduce healthcare costs. Artificial intelligence technologies will be quickly assimilated into analytics practices, providing consumers exceptional access to powerful insights that drive action. To improve the healthcare industry is currently in need artificial intelligence to provide knowledgeable and actionable insights from large sets of patient data and information and creating unified informatics architecture.
One of the major challenges in the implementation of the Artificial intelligence technologies is lack of sufficient quantities of the high quality of structured and standardized data. Data in healthcare industry comes from different sources like electronic medical records, laboratory and imaging systems, physician notes, and health-insurance claims and in multiple formats. As Artificial intelligence gains deeper access to work and personal life, it raises the biggest threat to mankind is by replacing humans with machines. For decades, automation has eaten away many jobs especially in the manufacturing area. Another major problem is how the patient can trust AI technologies when they know little about how AI systems actually perform disease diagnosis or develops treatment plans, as AI technologies can also make mistakes like physicians. So, in case of any mishappening, who will take the responsibility of malfunctioning of hardware or software in the world of AI-driven technologies, thus it would be very difficult to detect the fault. Security and privacy of data is also the biggest challenge of Artificial intelligence. AI requires a ton of data and with the advancement of connected devices and emerging technologies there is possibility of breach at various points and may result in theft of personal data and tampering with data.
The report provides detailed market analysis of Artificial intelligence market at global and regional level, in addition to the Artificial intelligence in healthcare market. The major regions covered are the US, Europe, Japan and Australia. It also covers in detailed description of top Artificial intelligence application in the healthcare industry with market size information and case study.
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