Asia woman video call talk chat help guide at home by AI tele consult telehealth telemedicine app clinic in IoT Internet of Things device collect ECG data heart pulse sleep rate on cloud computing.

Key takeaways

  • The breakneck speed at which global health services has developed in the past few years requires the health care industry to deliver fast, accurate results more than ever – enter artificial intelligence (AI).
  • As the global population continues to age and health care costs creep up, managing health care costs will be front and center for many economic and political decisions in the coming years.
  • AI can accelerate the drug research and development (R&D) process and improve patient outcomes at a fraction of the current price, hopefully making health care accessible to many more people.
  • While AI has the potential to transform many areas of health care, drug discovery and diagnostics are two markets that may see the largest impacts in the foreseeable future.


The Global Investment Strategy team

The past few years have seen an explosion in the availability of digital health services, largely spurred by the COVID-19 pandemic (and several other key factors). The necessary, rapid deployment of these services has led to continued advancements in health care technology since their mass introduction in 2020.

Now, in 2024, the release of generative artificial intelligence (AI) has expanded the possibilities for further advancements in the field. As the global population continues to age and health care costs creep up, managing these costs will be front and center for many economic and political decisions in the coming years. Such decisions may be more keenly felt in countries like the United States, which has much higher health care costs relative to many other countries.

Following this, improving patient outcomes while decreasing the cost of health care services has never been more important. When we consider the predicted trajectory of AI advancements in the coming years, patients, doctors and researchers will likely benefit in ways we cannot currently fathom. By improving these patient outcomes at a fraction of the cost, AI can hopefully make health care more accessible.

Given AI’s potential to both streamline medical procedures and subsequently lower health care costs, we see a possible window of investment opportunity here. And while AI certainly has the potential to transform many areas of health care, drug discovery and diagnostics are two markets that may see the largest impacts in the foreseeable future. Let’s dive in.

Innovations in medical research

One health care sub-field that is already reaping the benefits of AI is drug research and development (R&D). Not only did AI play a crucial role in creating the COVID-19 vaccines, but it has also massively accelerated the vaccine development process, shortening it to a mind-boggling timeframe of a year or so.1

AI solutions might also benefit medical research and testing behind new drugs. Like researching new drugs, the developmental process behind perfecting a new drug typically takes years or even decades. However, AI may also be able to speed this up, too.

Fortunately, though, this potential is already being realized in some key ways. One of the strongest cases for AI solutions in this area to drug discovery came a few years ago from DeepMind, an AI research lab from Google.

DeepMind used AI to predict the three-dimensional structures of essentially every know protein in biology (i.e., approximately 200 million proteins) including all proteins in the human genome. Think of 3D protein structures as critical building blocks that aid in many functions of the body, like the immune system. DeepMind’s database of all the protein structures has already helped scientific researchers make new discoveries. For instance, scientists used this database to help them develop a new vaccine for malaria, which kills hundreds of thousands globally each year.2

AI can even enhance development at the more advanced stages involving testing and clinical trials. In other words, AI can help make certain parts of clinical trials more efficient and safe for participating patients. Combined with machine learning (ML) algorithms, these AI systems can be trained on previous data from similar trials and drugs. This would in turn allow AI models to help identify the best patient candidates to include in a trial, calculate the best dosage levels and timing and – perhaps most importantly – flag any potential side effects of the drug on participating patients.

As you can see, AI can expedite this developmental process, play a role in lowering the costs and risks of clinical trials and potentially increase the success rate in new drug trials. But how else can AI improve health care?

Improvements in medical imaging and other diagnostic tools

The diagnostics market is also reaping the benefits of this technology. Medical diagnostics has recently received increased attention when it comes to AI’s potential implications in radiology. To illustrate this, AI has streamlined certain procedures like X-rays and CT imaging, making them more efficient for both health care providers and patients.

Over the past several years, AI solutions have helped radiologists read and interpret medical scans to boost efficiency and provide faster results. But these solutions can be applied even further – for instance, AI can be used in tandem with other medical technology to mitigate radiation risks for each individual scan while still maintaining accuracy.3

Indeed, the increased focus on AI across medical imaging is already apparent. For example, the number of AI-powered medical devices that have met the U.S. Food and Drug Administration’s (FDA) applicable premarket requirements has surged in recent years. To give you an idea of how quickly this list is growing, hundreds of AI-enabled medical devices have made the FDA list of approval in the past few years alone, up from around 10 or so not even a decade ago.4

How do humans fit in?

The sheer volume of these AI-enhanced health care solutions shows the impact that AI has already had on certain sub-fields within the industry, particularly in radiology. In 2022 alone, 87% of all AI-enabled medical devices that met the FDA’s applicable premarket requirements were in radiology.5

But don’t expect AI to replace human doctors or other medical professionals any time soon. Even though just a few years ago some were forecasting massive job losses in radiology thanks to AI, this has clearly not happened. In fact, some studies show that radiologists can outperform AI systems when making a diagnosis based on medical images.6 This underscores the idea that radiologists can use AI as a collaborative tool that helps them perform their job more efficiently, rather than have it put them out of work.

And since training these AI systems requires training on massive amounts of data to deliver the results we want, in many cases (particularly for rare diseases), this volume simply does not exist yet. Again, this highlights the need for a human touch to interpret more sophisticated CT scans.

The bottom line

Selectivity is key when researching possible investment opportunities in these particular sub-fields of health care. Large, profitable pharmaceutical companies with strong cash flows and significant resources to devote toward R&D may prove worthy investment candidates. This is because larger pharmaceutical companies can afford to be more defensive and tend to have positive earnings growth – even in stretches of market volatility.

But as is with all investments, there are inevitably a few key risks you should keep in mind. For example, be mindful of heightened regulatory environments, which may slow new drug and treatment innovation. Another variable to watch out for is price controls on new drugs, which could translate to widely-varying prices across different countries. Additionally, data privacy and cybersecurity will also become critical for any big data or AI applications in health care, as protecting patients’ privacy remains a primary concern for health care providers.

If you’re curious how investing in this area may impact your current investment strategy, consult a financial advisor.



MIT Technology Review. “I Was There When: AI helped create a vaccine.” (August 22, 2022)


Google DeepMind. “Stopping malaria in its tracks.” (October 13, 2022)


The European Physical Journal Plus. “Artificial intelligence for reducing the radiation burden of medical imaging for the diagnosis of coronavirus disease.” (May 8, 2023)


Food & Drug Administration (FDA). “Artificial Intelligence and Machine Learning (AI/ML)-Enabled Medical Devices.” (October 19, 2023)




Radiological Society of North America. “Radiologists Outperformed AI in Identifying Lung Diseases on Chest X-Ray.” (September 26, 2023)

Connect with a Wealth Advisor

Our Wealth Advisors begin by getting to know you personally. To get started, tell us about your needs and we’ll reach out to you.

Connect now



This material is for informational purposes only, and may inform you of certain products and services offered by J.P. Morgan’s wealth management businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at for assistance. Please read all Important Information.

Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan representative.

NON-RELIANCECertain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.

Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

Legal Entity and Regulatory Information.

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

Bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC.

This document may provide information about the brokerage and investment advisory services provided by J.P. Morgan Securities LLC (“JPMS”). The agreements entered into with JPMS, and corresponding disclosures provided with respect to the different products and services provided by JPMS (including our Form ADV disclosure brochure, if and when applicable), contain important information about the capacity in which we will be acting. You should read them all carefully. We encourage clients to speak to their JPMS representative regarding the nature of the products and services and to ask any questions they may have about the difference between brokerage and investment advisory services, including the obligation to disclose conflicts of interests and to act in the best interests of our clients.

J.P. Morgan may hold a position for itself or our other clients which may not be consistent with the information, opinions, estimates, investment strategies or views expressed in this document.  JPMorgan Chase & Co. or its affiliates may hold a position or act as market maker in the financial instruments of any issuer discussed herein or act as an underwriter, placement agent, advisor or lender to such issuer.