Companies in the medical technology sector are using artificial intelligence across an increasing variety of therapeutic areas — but radiology still dominates, according to researchers.
A wide-ranging report published Monday by accounting firm EY examined the financial and strategic landscape affecting medtech companies, including device manufacturers such as Stryker, Dexcom and GE HealthCare. By next year, EY estimates the medtech industry will be investing at least $10 billion annually into AI.
Related: FDA is digital health’s gatekeeper amid AI boom
Here are four AI-focused takeaways from the report.
1. Radiology is a dominant use case
As of Aug. 7, the Food and Drug Administration had approved, designated or cleared 923 AI-enabled medical device and software products since 2014, according to EY’s analysis of FDA data. Radiology-related tools account for about three-quarters of the technology.
Companies specializing in AI radiology, such as Canon Medical Systems, Aidoc and Zebra Medical, have had multiple tools approved by the FDA, according to the EY report.
2. Other specialties are gaining ground
Companies developing AI-enabled devices for other therapeutic areas are starting to make waves. In 2023, the FDA approved 45 non-radiology AI-enabled medical devices, according to EY. As of Aug. 7, the agency had approved 29 this year.
Behind radiology, cardiovascular care is the next most common therapeutic area for AI-focused medical technology when it comes to FDA approvals, followed by neurology.
3. Three companies are seeing big AI movement
Three big imaging vendors — Siemens Healthineers, Philips and GE HealthCare — account for 16% of all AI FDA approvals, designations and clearances since 2014.
Last year, the three companies were among the top 10 in the medtech sector in terms of revenue growth across the U.S. and Europe, according to EY’s analysis.
4. M&A activity has been slow
Despite the investments medtech companies have made into AI, merger and acquisition activity in the space has been relatively quiet, report authors said.
Only three major deals have been inked in the last 12 months, according to EY’s analysis: Lunit’s $194 million acquisition of cancer care-focused Volpara, Samsung’s $92 million acquisition of fetal monitoring company Sonio and GE HealthCare’s $40.5 million deal for the AI division of Intelligent Ultrasound.