Investor Attitudes to Healthcare AI Technologies

Investors are eyeing up the opportunities to invest in healthcare AI as it pushes the healthcare industry into new and exciting territory. R&D is currently focused on genomic sequencing, mapping, understanding populations and the treatment of rare diseases and hereditary cancer. AI applications are fundamentally altering how such R&D is conducted, as well as changing healthcare services to improve patient experience and outcomes. The advent of AI has dramatically altered the cost of capital, with private equity firms prepared to invest substantial sums into early adopters. These evolving opportunities raise important questions. How do we strike a balance in the healthcare AI space between regulation being too loose and overregulation hampering the success of the sector? How are regulatory developments likely to influence the attitude of strategic investors toward GAI products? Where is private equity in terms of its willingness to invest in AI? Where is the application of AI most productive from a healthcare perspective?

Following their blog post on private equity investors’ attitudes toward healthcare AI investment opportunities, Sidley healthcare regulatory and transactional partner Chad Ehrenkranz speaks with investor Chris Yoshida, managing partner of private investment vehicle PineTree Partners about how to strike a balance in the healthcare AI space between regulation being too loose and overregulation hampering the success of the sector. They discuss how regulatory developments are likely to influence the attitude of strategic investors toward GAI products, where private equity currently stands in terms of its willingness to invest in AI, and where the application of AI is most productive from a healthcare perspective.

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