The number of Food and Drug Administration-cleared artificial intelligence tools in imaging is expected to skyrocket by 2035, with venture capital funding set to surpass $30 billion, according to new research.
During the past seven years, the availability of such products has continued to expand in radiological care, with medical imaging accounting for 85% of digital health’s VC funding. Researchers sought to predict the trajectory of this growth pattern utilizing data from the American College of Radiology Data Science Institute (spanning 2008 to 2022) and Rock Health for AI funding (2013 to 2022).
Currently, there are roughly 11.33 new AI products for every $1 billion in invested, assuming a six-year lag between funding and product approval. In 2022 alone, the FDA cleared 69 new products tied to $4.8 billion in funding, researchers detailed in JACR. Continuing on the same trajectory, they expect venture capital funding to hit $30.8 billion by 2029, resulting in 350 new products in 2035.
“Given the strong relationship between funding and AI product development, the projected number of FDA-approved products entering the market is encouraging,” corresponding author Eric W. Christensen, PhD, director of economic and health services research at the Neiman Health Policy Institute, and colleagues advised.
The study estimated that funding for radiology AI has grown from $2 billion in 2013 up to $13 billion as of last year. Between 2018 to 2022 alone, the number of FDA-cleared products increased more than fivefold, leaping from 13 to 69. Christensen and colleagues also highlighted that VC funding in 2021 (reflected in the 2027 product year) “catapulted” then leveled off in 2022.
“This is likely due to macro-economic factors, such as interest rates, investor mind-set, and supply chain setbacks,” the study noted.
They anticipate that artificial intelligence will have a powerful impact on the specialty in the coming years, given the ballooning investment figure and number of offerings.
“As radiologists’ workload continues to increase, AI will be a crucial tool to manage this growth over the next few decades,” Keith Dreyer, DO, PhD, chief science officer of the American College of Radiology Data Science Institute, said in an Oct. 16 announcement.
Read more about the study results at the link below.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.