Artificial intelligence (AI) is increasingly recognized as a game-changer for many industries. It doesn’t matter if you’re working in law, finance, construction, or shipping—there’s likely an AI tool designed for your field, or one is currently in development.
As AI becomes more integrated into different sectors, especially healthcare, it’s crucial to evaluate its applications individually and by industry. The healthcare sector, in particular, is gearing up for a transformation through AI, as it faces numerous challenges such as high public demand, outdated management systems, and a lack of staff.
The emergence of the health tech industry in the UK has started to lessen these burdens, and the inclusion of AI technologies is set to enhance this support further. Recent research from the UK Office for Life Sciences reveals that the British health tech sector generates an impressive £34 billion annually and employs over 150,000 people.
Additionally, in 2024, health tech secured the second-largest amount of venture capital investment, attracting $3.3 billion, just behind fintech, which raised $3.9 billion. Many experts believe that AI innovations will boost growth and improve the healthcare system, and there are already several AI tools being utilized in this sector.
### Digital Pharmacies and Clinics
For example, InfoHealth is integrating AI tools into its digital pharmacy and clinic platform called NowPatient. Originally a provider for physical pharmacies, the company shifted focus to digital health solutions in 2018. After acquiring a strategic partner and investing heavily in its offerings, NowPatient was launched, offering services like prescriptions and virtual consultations through an accessible AI-driven platform. This initiative aims to ease stress on physical healthcare providers while improving access to essential health services. Notably, one of its AI tools, the deprescribing advisor, helps patients and their doctors determine if and how to reduce their medications. Moreover, the platform uses AI and machine learning to provide automated predictive analytics for better patient care.
### Drug Discovery
There’s also a surge of startups in the UK focusing on using advanced AI technology to enhance drug discovery efficiency. Companies like LabGenius, Kuano, and Curve Therapeutics are on the forefront of this innovation. Finding new drugs requires analyzing colossal amounts of biological and chemical data—something that AI can do much faster than humans. While we are still at the beginning of using AI in drug development, recent investments—like Curve Therapeutics’ £40.5 million Series A round in February 2024 and LabGenius’ £35 million Series B round last May—show a strong belief in the potential of this technology.
Danny Burton, a relationship manager at Lloyds, noted that “AI is now deeply integrated into many tech startups, not just those in health tech.” Startups are using AI and machine learning to analyze vast data sets, which helps speed up disease diagnosis, optimize treatments, and streamline drug discovery processes. With AI, researchers can even predict how drugs will interact with humans before starting clinical trials, making the development of new treatments faster and more efficient.
### Looking Ahead
The health tech industry has only just begun to explore the possibilities AI holds for improving healthcare. As new and exciting solutions come to light and investors continue to support these innovations, the future landscape of health tech could drastically change. AI is likely to automate various processes—ranging from administrative tasks in clinics to diagnosing patients—giving healthcare professionals more resources and time to focus on patient care.
The NHS is already running tests on several AI initiatives to boost efficiency, which will help understand how emerging technologies can benefit the organization. Positive outcomes from these trials, alongside continued financial backing and partnerships with banks, such as Lloyds, will help health tech firms grow significantly and positively influence public health.
For aspiring health tech entrepreneurs, Burton recommends establishing a strong advisory board that can navigate the complex regulatory challenges and offer guidance on the various hurdles startups face.
The relationship managers at Lloyds are eager to support the growth of this dynamic sector. By reaching out to them, businesses can explore ways to thrive in the evolving tech landscape.
