Deloitte: Is GenAI a game-changer in medical technology?

Across industries, the discussion around artificial intelligence (AI) and generative AI (GenAI) is shifting from potential to value realization. For medical technology companies, that value can come in the form of cost reduction, cost avoidance, and new revenue generation.

To assess the value that health technology companies have realized from AI and GenAI, and what value might be realized next, the Deloitte Center for Health Solutions surveyed 85 leaders of health technology organizations in the summer of 2024 and conducted follow-up interviews. The survey found:

AI and GenAI are already starting to create value across functions, with 42% of executives surveyed citing benefits in product development and 35% in IT and cybersecurity functions.

GenAI could enable medtech companies to achieve cost efficiencies of 6% to 12% of their total revenues over the next two to three years. This could come in the form of cost reductions, cost avoidance, and other benefits. For a medtech company with annual revenues between $20 billion and $26 billion, this would equate to $1.2 billion to $3.2 billion.

But AI and GenAI alone may not drive this transformative value. Adopting a chain of pearls approach—integrating multiple GenAI use cases with other AI technologies, data, and digital tools—is important to achieving cost efficiencies and other benefits. This requires the right “building blocks” to scale AI and GenAI, including creating enterprise goals for AI use and operational structures such as centers of excellence. These should be accompanied by new ways of working, governance for responsible and ethical AI use, and active communication of the AI ​​value narrative.

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