Can AI Make Healthcare Less Expensive?

Terrence Flynn, a U.S. biopharma analyst, and Erin Wright, a U.S. healthcare services analyst, both from Morgan Stanley, discuss the rapidly escalating healthcare spending in the U.S. compared to peer countries. They attribute this to an aging population, rising chronic diseases, and increased utilization of advanced treatments. The conversation focuses on the potential of AI to mitigate these costs, highlighting its applications in optimizing hospital staffing, improving administrative efficiency, personalizing care plans, and accelerating drug development. They project significant cost savings through AI implementation across hospitals, managed care, and biopharma sectors, with potential reductions in hospital stays and faster drug approvals. The discussion also touches upon the FDA's role in supporting AI-driven drug development and the increasing investment by biopharma companies in AI talent.