Why the Healthcare Sector Is Finally Catching Up to AI

May 16, 2025 - Baystreet.ca


Healthcare has long lagged behind other sectors in digital transformation. But now, converging trends—chronic disease burden, labor shortages, and data overload—are pushing the sector into an AI renaissance.

For years, healthcare trailed behind finance and logistics in adopting digital innovation. Clunky software, outdated records, and siloed systems created gridlock. But that’s changing fast. The pressure to modernize has reached a breaking point.

Rising chronic disease rates, growing clinician shortages, and an explosion of unstructured patient data have collided with rapid advancements in AI. Suddenly, hospitals, clinics, and drug developers are scrambling to adapt. AI isn't just improving efficiency—it’s becoming essential infrastructure. From predictive analytics to drug discovery, artificial intelligence is unlocking performance gains across the healthcare ecosystem.

Recent forecasts estimate that the global AI healthcare market could surge from $14.92 billion in 2024 to over $110 billion by 2030 (growing at a whopping 38.6% CAGR along the way), with some analyses projecting even faster growth in niches like predictive diagnostics and robotic surgery.

Venture capital is pouring in. And the talent behind the next generation of health tech unicorns is shifting—favoring founders fluent in both AI and clinical systems.

For investors, it’s a turning point. Healthcare is no longer an AI laggard. It’s emerging as one of the most urgent and lucrative arenas for artificial intelligence to prove itself.

Up next: four companies already capturing investor attention in this accelerating space.

To LEARN MORE about a FIFTH company, click HERE for a SPECIAL REPORT.

AI-Powered Healthcare Players to Watch:

Microsoft Corporation (NASDAQ: MSFT) just released its 2025 AI in Healthcare Decision Brief, outlining how 79% of healthcare and life sciences organizations are already using AI, with generative models now seen as the top priority. Microsoft is spotlighting the role of trustworthy AI, infrastructure advancements, and partner ecosystems—including its support for industry networks like CHAI and TRAIN—to drive adoption across precision medicine, clinical workflows, and predictive health platforms

Apple Inc. (NASDAQ: AAPL) is reportedly advancing a secretive project dubbed Project Mulberry, which aims to reinvent the Apple Health ecosystem using AI agents and large language models. Leveraging data from millions of Apple Watch users, the initiative is expected to include intuitive food-tracking, curated health coaching, and seamless integration of personalized health tools across iOS—a major play in consumer-driven wellness AI.

CeriBell, Inc. (NASDAQ: CBLL) has secured FedRAMP High authorization, a rare federal cybersecurity credential now allowing its AI-powered EEG platform to be deployed across U.S. Department of Veterans Affairs hospitals. This milestone makes Ceribell one of only 51 U.S. firms with this elite designation and sets the stage for rapid federal adoption of its rapid-response neurological diagnostic tools.

OmniAb, Inc. (NASDAQ: OABI) launched its xPloration® Partner Access Program, enabling biopharma partners to directly purchase the company’s AI-powered B-cell screening instrument. The platform processes millions of single cells with unprecedented speed and precision, integrating machine learning and advanced imaging to unlock rare antibody variants for next-gen drug discovery and immune profiling.

A Market in Hyperdrive: Why AI in Healthcare Is Outpacing Expectations

It’s not just anecdotal. It’s arithmetic.

The AI healthcare market is entering a phase of exponential expansion—one that few industries have seen in such a short window. Analysts across the board are revising their forecasts upward as investor appetite converges with clinical urgency and technical feasibility.

Recent projections from Grand View Research peg the market at $187.7 billion by 2030, citing precision medicine, robotic surgery, and drug repurposing as major growth drivers.

Allied Market Research is even more bullish, forecasting a $194.4 billion market with a staggering 38.1% compound annual growth rate (CAGR) through the end of the decade.

MarketsandMarkets also confirms the trajectory, projecting a yearly 38.6%-CAGR leap from $14.92 billion in 2024 to over $110 billion by 2030—fueled by the growing role of deep learning in imaging, genomics, and early diagnosis.

What’s driving the surge? A flood of structured and unstructured data from EHRs, wearables, and diagnostic devices is colliding with next-gen AI tools capable of parsing it all at scale. As clinical adoption grows and use cases multiply—from triage bots to therapeutic discovery—the market isn’t just scaling. It’s accelerating.

This is no longer a speculative trend. The numbers are in. The stakes are high. And the upside, for both medicine and the market, is enormous.

The Bottom Line

Artificial intelligence isn’t waiting in the wings. It’s already transforming healthcare at every level—from how diseases are diagnosed to how care is delivered across hospitals, homes, and digital platforms.

What was once confined to research labs and pilot programs is now scaling into enterprise systems. With billions in new investment, growing clinical validation, and improved regulatory clarity, the sector is shifting from potential to performance. AI is proving it can reduce costs, improve outcomes, and relieve the pressure on an overburdened healthcare workforce.

For investors, the timing couldn’t be more aligned. Market forecasts show explosive growth across nearly every major vertical—diagnostics, therapeutics, imaging, virtual care, and data analytics. And as healthcare systems face mounting pressures, adoption is moving from experimental to essential.

This convergence of demand, capital, and capability is creating a rare window of opportunity. The companies leading this shift aren’t just riding the AI wave—they’re shaping it.

One such company is developing an advanced platform that combines AI innovation with scalable healthcare integration. Its latest investor update reveals how it plans to capture this fast-moving market.

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