The Leapfrog in Healthcare AI

The healthcare industry has long lagged in adopting modern technology. Notably, only one of the 100 largest public software companies specializes in healthcare​. Instead of modern solutions, manual processes and outdated tools like fax machines and phone calls still dominate workflows. Unlike industries where tools like Salesforce, Slack, JIRA, and Notion have become integral to daily operations, healthcare lacks similarly transformative software at scale​.

Historically, the slow adoption of technology in healthcare has been seen as a weakness. However, this lack of legacy software can now be viewed as an advantage​. Industries that have heavily invested in earlier-generation enterprise software face the challenge of replacing these systems to leverage emerging AI innovations. Healthcare, by contrast, has fewer sunk costs. The choice for providers is stark: continue relying on labor-intensive, manual methods or leapfrog to AI-driven solutions unencumbered by outdated systems.

Another factor positioning healthcare for AI adoption is its established regulatory rails for approving AI products for use in real-world clinical setting. The FDA is already evolving to accommodate advancements in ML and generative AI​.

Although the rigorous standards create high barriers to entry, filtering out all but the most clinically robust technologies strengthens the competitive moat for those that succeed.