Generative AI image concept

Global generative AI health market poised to reach $29B by 2033: report

As generative artificial intelligence (AI) continues to be popular, experts are pointing to the healthcare industry to embrace the emerging technology before the decade’s end.

According to a report by Spherical Insights & Consulting, AI in healthcare could reach a valuation of $29.8 billion by 2033 from its present level of $1.5 billion. The spike in valuation represents a compound annual growth rate (CAGR) of 34.84% during the projected period.

A closer inspection of the 200-page report reveals that the medical image analysis and diagnostics segment will account for the lion’s share of the predicted growth. Presently, this segment is in top position and is expected to extend its lead over the rest of the industry ahead of patient monitoring and predictive analytics.

Back in 2023, Google’s (NASDAQ: GOOGL) partnership with iCAD (NASDAQ: ICAD) earned plaudits for cancer detection, reducing the chances for errors while improving the efficiency of diagnoses. Meta (NASDAQ: META) unveiled an AI system designed to decode images by monitoring brain activity, which it says could have myriad applications in healthcare.

“Longer term, it may also provide a stepping stone toward non-invasive brain-computer interfaces in a clinical setting that could help people who, after suffering a brain lesion, have lost their ability to speak,” Meta’s paper read.

Although significant inroads have been made in the areas of drug discovery, personalized treatment, and patient assistance, the predicted growth rate for these verticals is expected to play second fiddle.

Based on end-use, the report tips healthcare service providers to be the biggest growth drivers, with clinics and diagnostic centers leading the industry. Pharmaceutical and life science companies will play a secondary role in terms of adoption, but the report remains coy on the exact figures.

Regarding regional distribution, North America is poised to lead generative AI in healthcare. The report points to the heavy influx of capital toward developing research and design facilities and its first-mover advantage, with the Asia-Pacific region coming in a distant second place.

AI climb comes with risks

Despite the predicted spike in valuations, regulators have sounded a warning on the potential dangers of emerging technologies. The World Health Organization (WHO), back in January, pointed out that AI systems in health could generate inaccurate outputs, leading to potentially grim results.

“As LMMs [large multi-modal models] gain broader use in health care and medicine, errors, misuse and ultimately harm to individuals are inevitable,” said WHO in an advisory.

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