The Accelerating State Of AI Health In Hospitals And Homes

The adoption of AI tools to improve the quality and cost-effectiveness of healthcare is accelerating. The impact is felt in multiple domains: from developing a drug or treatment to deploying it, assisting with managing patients’ health in clinical settings, and putting AI in the hands of consumers. Here is a roundup of recent growth indicators of AI in healthcare. In the first quarter of 2025, they saw a marked acceleration in AI health investments. CB Insights reports that AI startups raised $3.2 billion, or 60% of all digital health funding, up from 41% in the first quarter of 2024. “Top-funded segments included AI-derived small molecule drug discovery and clinical documentation tools, underscoring the shift toward targeted, high-impact applications,” says CBI. AI startups secured 8 of the 11 mega-rounds (deals over $100 million), “signaling where investors expect outsized returns.”