Healthcare practices and insurers are increasingly turning to artificial intelligence (AI) to handle administrative tasks efficiently. Investors are heavily investing in startups that specialize in AI solutions for the healthcare industry, with one recent example being Regard, an AI startup that secured Series B funding in a fiercely competitive market.
Regard, based in Los Angeles, is rumored to have achieved a valuation of $350 million after raising $30 million in their Series B funding round. Despite the buzz surrounding their success, Regard declined to provide a comment for the story. However, it is clear that the demand for AI solutions in healthcare is growing as more companies like Abridge and Cohere Health secure significant funding for their own AI-powered solutions.
The healthcare industry’s interest in adopting AI solutions to combat provider burnout and rising costs has paved the way for startups like Regard to thrive. Founded in 2017, Regard had an annual recurring revenue of approximately $8 million by the end of 2023. As competition intensifies among these AI-focused startups, some companies are partnering with larger organizations like Banner Health, a nonprofit health system, to expand their reach and impact.
Regard’s co-pilot tool is currently in use at over 100 hospitals, and they plan to leverage GPT-4 from OpenAI for building new chatbot tools. With more investment flowing into this space every day, it’s clear that AI will continue to play a crucial role in shaping the future of healthcare administration and documentation processes.