Healthcare is on the cusp of an AI revolution, but only the surface of its transformative potential has been explored. As the first wave of AI adoption in healthcare unfolds, a fascinating pattern is emerging that mirrors the evolution of tech giants like Amazon and Google — a journey from singular solutions to comprehensive platforms that reshape entire industries. It’s a roadmap worth studying for innovators looking to break through in this crowded market, and healthcare organizations looking to stay ahead of the curve in AI adoption.
The commoditization challenge
The initial breakthrough in healthcare AI came through ambient scribing — AI-powered systems that automatically document patient-provider interactions. This technology addressed a critical pain-point in healthcare: the administrative burden that takes physicians away from patient care. The market responded enthusiastically, with numerous startups entering the space and achieving rapid adoption. In fact, KLAS Research reported that 93% of health systems expect to adopt ambient AI tools at a moderate to deep level within the next six months.
However, as AI technology becomes increasingly commoditized, there has already been an inevitable race to the bottom in pricing for these single-use solutions. Enterprise contract values for scribing services are now feeling the pressure of intense competition. This trend signals an important reality: Standalone scribing solutions, while valuable, won’t be enough to build sustainable, large-scale businesses in the long term.
Platform evolution: The key to sustainable value
While the first wave of healthcare AI innovation focused on niche use cases, many of these solutions will struggle to scale into large, standalone businesses. To create long-term value, the second wave of innovation must be integrated, data-driven platforms that address multiple healthcare functions and produce visible return on investment.
The healthcare AI market is further complicated by the dominance of large incumbents, such as Epic and Microsoft, which control much of the healthcare infrastructure and exert significant influence over data, operations, and workflow. This creates challenges for niche AI startups, which may either struggle to carve out a sizeable market or face the risk of being outcompeted when the incumbents inevitably enter the space and introduce competing products.
Learning from big tech’s playbook
However, opportunities for innovation remain in areas where the incumbents may not establish dominance. AI companies that focus on building platforms that work alongside physicians and integrate seamlessly with existing tools and platforms have the potential to complement, rather than compete with, current infrastructures.
The broader potential of AI in healthcare will mirror the evolution seen in other technology sectors. Companies like Google and Amazon began with narrow, specialized products — Google as a search engine and Amazon as an online bookstore — but quickly expanded into integrated, expansive platforms. A similar shift is happening in healthcare. Initially focused on specific use cases, AI companies are now evolving into comprehensive platforms that address both clinical and operational challenges. While still in its early stages, healthcare AI is transitioning toward data-driven, holistic platforms that span a wide range of functions and services. To remain competitive, today’s niche AI use cases will need to expand their capabilities and evolve into the next generation of platforms.
The evolution from scribing to broader platforms is already underway, with the emergence of what Elion Health calls the “clinician copilot” — an integrated clinical and non-clinical AI layer that sits atop the EHR. This platform evolution follows a natural progression, starting with ambient scribing, extending to clinical summarization, and now expanding into clinical decision support.
A prime example of this transition is the partnership between Abridge and UpToDate (Wolters Kluwer Health). This collaboration represents more than just an incremental improvement — it’s a fundamental shift in how healthcare providers engage with clinical data. By combining AI-powered transcription of patient-provider conversations with immediate access to UpToDate’s extensive medical database, the platform enables real-time, evidence-based decision-making at the point of care. This integration moves beyond simple documentation to create a comprehensive system that enhances both the quality and speed of care delivery.
The smart hospital room opportunity
Companies that gain momentum in the market can turn it into long term success if they build their solutions with a platform approach in mind. For example, as ambient scribing companies look to expand their platform capabilities beyond clinical decision support, there is a unique opportunity in the smart hospital room space. This represents a natural yet transformative extension of their existing technology stack, one that could redefine the future of inpatient care while building a defensible platform moat.
By integrating their ambient documentation capabilities with AI-powered video monitoring systems, these companies could create a comprehensive platform that owns the entire hospital room experience. This platform would combine:
- Automated clinical documentation
- Real-time patient monitoring
- Environmental sensing and control
- Staff activity tracking
- Predictive analytics for patient needs
- Workflow optimization
This convergence of capabilities is particularly powerful because it leverages the unique strengths of ambient scribing companies — their expertise in capturing and processing real-time healthcare interactions — while expanding into new, high-value territories. By combining written and visual AI technologies, these companies can build a platform that not only improves care delivery but also creates significant barriers to entry for competitors.
Transforming healthcare’s AI future
The path forward is clear: While ambient scribing marked the beginning of healthcare’s AI journey, the future belongs to integrated platforms that can transform multiple aspects of healthcare delivery. Just as Google and Amazon expanded far beyond their initial offerings, successful healthcare AI companies must evolve into comprehensive platforms that address both clinical and operational challenges. The “clinician copilot” represents a compelling example of this platform evolution. Companies that recognize this opportunity and successfully execute this platform strategy will be the ones that ultimately reshape healthcare for the better.
The future of AI in healthcare is incredibly promising. AI will become a central partner in healthcare delivery as these tools evolve from passive assistants to proactive partners. The transformation it brings — driving efficiency, improving patient outcomes, and reshaping the way care is delivered — can redefine the industry across clinical and operational functions.
Image: MR.Cole_Photographer, Getty Images
Lise Courtney D’Amico is a healthcare venture investor at LRVHealth. Before joining LRVHealth, Lise Courtney was Senior Manager of Strategic Payer Partnerships at ChenMed where she focused on value-based contract negotiation, market expansion, quality improvement, and sales strategy. Lise Courtney began her career as an economic consultant with Charles River Associates’ (CRA) antitrust practice. In her role at CRA, she helped to evaluate antitrust concerns for a major payor/provider healthcare merger to ultimately receive DOJ approval. Her previous experience also includes finance consulting for FTI Consulting. Lise Courtney earned her B.A. from Boston College with a double major in Mathematics and Economics. She earned her M.B.A. from the University of Chicago Booth School of Business.
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