The Yuan AI 2023: A year when health innovation is set to mature and consolidate

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By Rohitashva Agrawal | Jan 03, 2023

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As 2023 gets underway, AI-related innovation in health tech companies is likely to be as affected by war, inflation, energy shortages, and available funding as by tech advances. Consolidation is likely, which may reduce competition, though even if trendy startups and eye-catching but risky ventures struggle, ‘boring’ innovation that often flies under the radar will continue to rack up successes. Harvard fellow Dr Rohitashva Agrawal explains.

BENGALURU - 2022 started on a high note for innovative health tech companies; significant funding was poured into these companies, with many witnessing record-high valuations.¹ In addition, the world is now coming out of the Covid pandemic and the resumption of travel with business activities is on the upswing, adding optimism to the ecosystem.² However, due to soaring levels of inflation caused in part by the Russia-Ukraine war and interest rate increases being implemented by numerous central banks around the world in response, there are increased flows of capital to the United States, which is leading to the devaluation of many currencies against the dollar.³

This has started to impact the pace of innovation in healthcare as well. As 2022 has just drawn to a close, this is an excellent time to reflect and predict what might be in store for AI and health innovation in 2023.

- Less mature experimental technologies may see reduction in momentum

Innovative technologies like blockchain and the metaverse hold a lot of potential, especially in healthcare. Post-pandemic healthcare is going through significant changes, and there is a lot of scope for these technologies to contribute. Covid has ended up serving as a catalyst towards adopting technology as an enabler of transformation.

However, with the 2022 crypto crash and Meta`s poor financial performance, there is some skepticism regarding just how confident one should be in these emerging technologies.⁴ Therefore, interest in emerging technologies might remain subdued. However, any compelling use case could well change the trajectory of adoption.

- Expect delayed government funding for innovations due to fiscal deficit

The year 2022 has been a year of high interest rates worldwide, and almost every country is strugglin

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