Generative AI in Healthcare Market Size

Generative AI in Healthcare Market Size

The global generative AI in healthcare market was valued at USD 1.8 billion in 2023 and is expected to exhibit growth at a CAGR of 33.2% from 2024 to 2032. High market growth can be attributed to the advancements in deep learning and natural language processing (NLP), increasing demand for personalized treatment, growing investment in healthcare AI, and rising healthcare data volumes, among other contributing factors.

Moreover, the rapid advancement of deep learning models, including GPT and NLP tools, enables various healthcare applications. These include medical imaging analysis, automated reporting, and conversational AI for patient assistance. Such technological progress is driving the adoption of generative AI solutions in the healthcare sector.
 

Furthermore, governments, private organizations, and venture capitalists have been making significant investments in generative AI technologies to enhance healthcare efficiency. For instance, the U.S. government, through the National Institutes of Health (NIH), allocated USD 1.5 billion to AI research in healthcare between 2018 and 2022. This substantial funding has accelerated advancements in AI-driven drug discovery and medical diagnostics, fostering innovation and driving market expansion.
 

Generative AI in healthcare refers to the application of artificial intelligence (AI) techniques that involve the generation of new and original data. Also, in the healthcare sector, generative AI is used for tasks such as generating synthetic medical images, creating virtual patient data for training healthcare algorithms, simulating disease progression, and even designing novel molecules for drug discovery.