Healthcare gets a quick checkup for signs of gen AI metabolization
It’s easy to forget that generative AI launched into the economy—and the public imagination—less than two years ago. How could it be otherwise? Much has happened since OpenAI got the ball rolling with ChatGPT in late 2022.
Healthcare has done its best to surf the aftershocks. To gauge the sector’s degree of adaptation, McKinsey took healthcare’s pulse at two points in time—the fourth quarter of 2023 for baseline and the first quarter of 2024 for trend detection.
Both exercises yielded illustrative snapshots rather than comprehensive overviews, as the firm surveyed 100 representative U.S. healthcare leaders for each.
In a report on the project released last week, McKinsey analysts lay out five sets of results and observations. Here are excerpts.
1. Most healthcare organizations are at least pursuing gen AI proofs of concept.
In Q4 2023, 25% of respondents said they had already implemented gen AI. The count grew to 29% as of Q1 2024.
Despite U.S. healthcare’s general interest in using AI, a substantial portion of respondents is still operating without any plans to pursue gen AI or still maintaining a wait-and-see approach.
2. Healthcare orgs that are already implementing gen AI do so primarily through cobuilding partnerships.
McKinsey’s Q1 2023 survey found 59 of 100 orgs partnering with third-party vendors to develop customized solutions. That number dropped to 42 by Q1 2024, but the count of orgs procuring gen AI products that require limited customization swelled from 17 to 41.
Among those who haven’t yet implemented gen AI, 41% say they intend to buy gen AI products. This behavior may be driven by this population’s concerns with risk (57% are not pursuing gen AI because of risk considerations) and technology needs (29%).
3. Among early gen AI implementers, few have quantified the technology’s impact.
However, 58% believe it is producing a positive ROI.
As with any investment, it’s critical for stakeholders to be able to realize the value that gen AI promises. A measurable positive impact serves as strong reinforcement for continued and expanded use and investment.
4. Surveyed healthcare leaders believe gen AI’s greatest value will come on two fronts.
By name, the two are boosted clinical productivity and patient engagement.
Expectations are also high around gen AI’s potential to improve administrative efficiency and care quality.
5. The No. 1 challenge for healthcare organizations pursuing gen AI is risk.
Not far behind are insufficient capability, data and tech infrastructure, and proof of value.
This demonstrates healthcare organizations’ limited tech readiness to deploy gen AI solutions and also to validate its capabilities.
The report’s authors comment that, as gen AI deployment progresses, healthcare organizations will likely focus on using the technology to support “clinically adjacent” applications.
“However, as organizations develop strong competencies in governance and risk management,” they add, “we expect additional focus on core clinical applications as well, further improving the overall patient/member experience.”
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.