2024 Trends in AI and Health Tech
Summary
TLDRIn 2023, artificial intelligence (AI) is poised to revolutionize healthcare, a sector known for being labor-intensive and inefficient. Bessemer Ventures has heavily invested in AI, recognizing its potential to streamline healthcare operations, from clinical decision support to drug development. The firm sees significant opportunities for AI in healthcare, with telehealth emerging as a key area post-COVID. Despite high valuations, the potential for growth is immense, and exits are expected in the coming years, particularly in digital health startups. Bessemer's investments span globally, indicating that innovation is not confined to traditional tech hubs.
Takeaways
- π Artificial Intelligence (AI) is becoming increasingly relevant in the healthcare industry, with the potential to revolutionize various aspects of healthcare.
- π‘ Bessemer Ventures has made a significant commitment to AI, recognizing its transformative impact on healthcare, particularly given the industry's inefficiencies and vast data.
- π Healthcare is one of the most data-intensive sectors, accounting for 30% of the world's data, which AI can help manage and leverage effectively.
- π οΈ AI's capabilities in automating tasks are particularly suited to healthcare, which is labor-intensive and could benefit from technological advancements.
- π The application of AI spans across healthcare, including administrative tasks, clinical decision support, and drug development.
- π Despite AI being a longstanding concept, it's now gaining traction as a 'bright, new, shiny object' in the market, indicating a shift in perception and investment.
- πΌ Bessemer has been investing in AI in healthcare for over five years, anticipating a surge in new opportunities and the enhancement of existing companies.
- πΌ The healthcare industry's laborious nature makes it ripe for AI-driven automation, which can improve service delivery and administration.
- π Valuations in the AI sector are robust, reflecting the sector's potential for significant growth and innovation.
- π Bessemer's investments are not limited by geography, with a global outlook that includes startups from various regions, showcasing the universal potential of AI in healthcare.
- π± The digitization of healthcare, spurred by the COVID-19 pandemic, has opened up new opportunities for telehealth and remote care delivery, which are key areas of investment for Bessemer.
Q & A
What commitment has Bessemer Ventures made to artificial intelligence (AI)?
-Bessemer Ventures has made a large commitment to AI, recognizing its potential to impact various industries, particularly health care.
Why is AI expected to be particularly impactful in the health care industry?
-AI is expected to be impactful in health care due to the industryβs labor-intensive nature and inefficiencies, as well as the fact that health care represents 30% of the worldβs data. AI is well-suited for automating tasks and improving processes within this data-heavy industry.
How might AI revolutionize health care delivery?
-AI can revolutionize health care delivery by automating administrative tasks, providing clinical decision support to clinicians, and enhancing the design and delivery of drugs, improving overall patient care.
How long has Bessemer Ventures been investing in AI technologies related to health care?
-Bessemer Ventures has been investing in AI technologies related to health care for over five years, applying these technologies to various areas within the industry.
What changes has AI brought to the way services are administered in health care?
-AI has begun to shift health care services to be more software-based, automating tasks that are typically performed manually by humans, making services more efficient and scalable.
What effect has AI had on the valuations of companies in the sector?
-While valuations in the AI sector are robust and considered high, Bessemer Ventures believes that the opportunities AI presents are equally significant, particularly in health care.
Which previous platform shifts in technology are comparable to the current AI revolution?
-Previous platform shifts like the transition from on-premise software to the cloud and the introduction of the iPhone are comparable to the current AI revolution in terms of their transformative impact.
How has the adoption of telehealth impacted health care delivery, according to the transcript?
-The COVID-19 pandemic unlocked the potential of telehealth, which allowed patients to receive care remotely. Companies like Headspace Health and Hinge Health have capitalized on this shift, offering mental health care and physical therapy through digital platforms.
What kind of care does Headspace Health focus on, and why is it important?
-Headspace Health focuses on delivering mental health care. This is crucial due to the global shortage of mental health clinicians, and the platform allows people to access quality mental health care through their phones.
Where does Bessemer Ventures find opportunities for health care innovation in terms of geography?
-While Silicon Valley and Boston are known for innovation in tech and biopharmaceuticals respectively, Bessemer Ventures finds opportunities for health care innovation globally, investing in regions such as Minneapolis, North Carolina, London, and Israel.
Outlines
π€ AI's Impact on Healthcare
The paragraph discusses the significant role of artificial intelligence (AI) in revolutionizing the healthcare industry. AI is poised to address the industry's laborious and inefficient nature by automating tasks and handling a vast amount of data. The speaker from Bessemer highlights AI's potential in various healthcare sectors, including payment administration, clinical decision support, and drug design. The investment focus on AI in healthcare is seen as a response to the industry's need for innovation and efficiency.
Mindmap
Keywords
π‘Artificial Intelligence (AI)
π‘Healthcare Start-ups
π‘Bessemer
π‘Clinical Decision Support
π‘Data
π‘Telehealth
π‘Valuation
π‘Platform Changes
π‘Exits
π‘Biopharmaceutical
π‘Entrepreneurs
Highlights
2023 is a pivotal year for discussions on artificial intelligence's impact on healthcare startups.
Bessemer has made a significant commitment to AI, recognizing its potential in healthcare.
Healthcare is identified as one of the most inefficient industries, ripe for AI-driven improvements.
Healthcare accounts for 30% of the world's data, presenting a vast opportunity for AI applications.
AI is expected to automate tasks, improve clinical decision support, and revolutionize drug design.
The conversation around AI has evolved from a shiny new object to a serious consideration in healthcare.
Bessemer has been investing in AI in healthcare for over five years, focusing on various applications.
AI is anticipated to shift healthcare services from labor-intensive tasks to more software-based solutions.
Valuations in the AI sector are robust, reflecting the significant opportunities in the space.
Platform changes like cloud computing and the iPhone have historically created massive economic impacts.
AI's potential in healthcare is considered uncapped, with exits expected in the next 5-10 years.
Bessemer has a history of successful investments, including Pinterest and LinkedIn.
The digitization of healthcare, spurred by COVID, has led to innovations like telehealth.
Companies like Headspace Health and Hinge Health are leveraging telehealth to address clinician shortages.
The potential for telehealth to deliver mental health and physical therapy services is vast.
Bessemer is looking at companies that can provide exits in the near term, indicating a strong market opportunity.
Entrepreneurship and innovation in healthcare are not limited by geography, with opportunities worldwide.
Bessemer invests globally, recognizing the universal potential for entrepreneurial spirit and innovation.
Transcripts
Ultimately, what 2023 is shaping up being is a conversation around
artificial intelligence, but that can affect each and every health care start
up or kind of. We at Bessemer have made a really large
commitment to AI. And I would say that health care is
actually one of the industries where it's going to be most relevant, most
impactful. And the reason for that is, you know,
health care is the most laborious, inefficient industry in the economy.
It's also 30% of the world's data. And so if you think about that
combination, what is artificial intelligence good at?
It's good at automating tasks in all parts of our economy.
But we think in health care it's going to be really impactful basically
everywhere from how the payment in health care is administered on the back
end, how health care is delivered by clinicians in terms of clinical decision
support, for instance, A.I. can be very impactful and then also how
drugs are designed and delivered to improve human health.
And so we think all aspects of the health care economy are going to be
revolutionized by the problem in 2023 is suddenly we felt that I was this bright,
new, shiny object and ultimately artificial intelligence being an unsexy
topic for years. And I'm interested as to therefore, for
you, was it about starting to amplify the story amid the companies you've
already backed, or is it finding new companies that are being built out of
this sudden change that we did see with generative A.I.?
I think it's both. We've actually been investing.
You're right, it's been around for a long time, these technologies, and we've
actually been investing in five plus years in terms of how these technologies
are applied to health care. And I mentioned some of the ways that
that could be. And so I think there's going to be
plenty of new opportunities that come out over the next decade of how I can be
applied to health care. But I also think for existing companies,
as you point out, I talked about how health care is a very laborious
industry. A lot of it's services, you know, humans
doing tasks that actually can be automated, that are pretty mundane but
are very important. And so we actually think A.I.
is going to shift services to more software like in in their
administration. And how how care is delivered.
What is it done to the valuation story of the companies that you're looking to
invest? It already have done well as a hot
space, and I think, you know, the valuations, the AI sector are pretty
robust, but we also think the opportunity is equally as robust.
And it's if you think about it, you know, in my career in venture, there
have been several platform changes, you know, moving from on premise software to
the cloud. That was a huge, huge shift in our
economy and created hundreds of billions, trillions of dollars of of of
innovation, entrepreneurship, the iPhone.
Right. Huge moment is also a huge moment.
So while, you know, valuations are heady, I actually think the opportunity
is almost uncapped. And so we're excited and that applies to
health care. I can be still and maybe even some
exits. I mean, talk to us about when you
thinking of Bessemer Ventures, I think of, well, some of the unbelievable
companies that have been gone public through the Pinterest that you mentioned
from early days and and some of the other CEOs.
LinkedIn's who are they in your current source of of portfolio companies that
you've invested in? Where do we see those exits coming from?
Yeah, I think it's the I wave were early in it and so I think those exits will
come in in you know 510 years. But right now one area that we've
invested in is just the the digitization of the health care economy.
Again, it's often been experience where people get their health care in person.
But we saw that COVID actually unlocked the whole idea of telehealth.
And so we think all throughout the delivery of care, whether it be
companies like Headspace Health or Hinge Health, Headspace is obviously focused
on mental health care, which, as you know, has been an area where, frankly,
there's a lack of supply of clinicians in in in the US and in the world.
And so a company like Headspace that delivers really important, high quality
mental health care to all, if you have a phone and iPhone again, that's a huge,
huge opportunity that we think is going to run for a long time.
And and also a company like Hinge, which is doing the same when it comes to back
or knee or hip pain, being able to deliver that care like physical therapy.
You don't have to go to see your physical therapist in person.
You can actually do that care via your iPhone.
Again, a huge market opportunity. We think those are the companies that
we're going to see, you know, get two exits in the near term.
You're based on the East Coast, but up in Boston, Yes.
Where are those opportunities coming from?
Where are these companies being built at the moment?
Do you think that you're going to be looking to in 2024?
I you know, we at Bessemer have long believed that, you know, Silicon Valley
is obviously a hotbed of innovation, but Boston's a hotbed of biopharmaceutical
and health care innovation. New York But frankly, we've invested all
over the United States and all over the globe.
We have offices worldwide. And so we actually think entrepreneurs
can be anywhere. And frankly, one of the things that, you
know, remote work taught us is that, you know, entrepreneurs are everywhere and
people can work everywhere. And so we've invested in everywhere from
Minneapolis to North Carolina to London, Israel and all across the globe.
And so I don't think entrepreneurs are limited in where they live.
I think it's the the that spirit lives everywhere and the possibilities are
everywhere.
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