The Potential Impact of Artificial Intelligence on Healthcare Spending

Nikhil Sahni, George Stein, Rodney Zemmel and David Cutler

No 30857, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The potential of artificial intelligence (AI) to simplify existing healthcare processes and create new, more efficient ones is a major topic of discussion in the industry. Yet healthcare lags other industries in AI adoption. In this paper, we estimate that wider adoption of AI could lead to savings of 5 to 10 percent in US healthcare spending—roughly $200 billion to $360 billion annually in 2019 dollars. These estimates are based on specific AI-enabled use cases that employ today’s technologies, are attainable within the next five years, and would not sacrifice quality or access. These opportunities could also lead to nonfinancial benefits such as improved healthcare quality, increased access, better patient experience, and greater clinician satisfaction. We further present case studies and discuss how to overcome the challenges to AI deployments. We conclude with a review of recent market trends that may shift the AI adoption trajectory toward a more rapid pace.

JEL-codes: I10 L2 M15 (search for similar items in EconPapers)
Date: 2023-01
New Economics Papers: this item is included in nep-big and nep-cmp
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Citations: View citations in EconPapers (2)

Published as The Potential Impact of Artificial Intelligence on Health Care Spending , Nikhil R. Sahni, George Stein, Rodney Zemmel, David Cutler. in The Economics of Artificial Intelligence: Health Care Challenges , Agrawal, Gans, Goldfarb, and Tucker. 2024

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Chapter: The Potential Impact of Artificial Intelligence on Health Care Spending (2023)
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