Microsoft, Alphabet, Meta and Amazon are expected to spend more than $700 billion on capital expenditures this year as they expand the infrastructure required to support AI. For spending at that scale to pay off, AI will need to deliver meaningful productivity gains across the economy. Few industries offer more room to prove it than healthcare. U.S. healthcare spending reached $5.3 trillion in 2024, or 18% of GDP. By some estimates, close to $1 trillion goes toward administration alone. Demand for care also continues to outpace the available clinical workforce. If AI can lower the cost of delivering care while freeing clinicians to serve more patients, the economic opportunity could be enormous.
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