The global AI healthcare market is rising sharply. It is reportedly expected to reach more than $180 billion by 2030.
Whether it eases the administrative burden on physicians, acts as a patient's initial contact point, or rapidly integrates into medical research and diagnosis, AI has the potential to transform the healthcare sector. According to the American Medical Association, two in three doctors use AI, an increase of 78% compared to 2023.
No. 5 of the Fortune 500, CVS Health is a leading player in the healthcare industry with the largest chain of pharmacies in the country. The company also provides clinical services through its subsidiaries CVS Caremark and MinuteClinic.
For Tilak Mandadi, Executive Vice President of Venture and Chief Experience and Technology Officer at CVS Health, innovation is already underway to disrupt the healthcare industry. Before joining CVS Health in 2022, Mandadi served as executive roles in experience, technology and strategy across hospitality and finance, including MGM Resorts International, Disney Parks and American Express.
In his conversation with Fortune, Mandady discusses his most pressing agenda items and his predictions for the healthcare industry in the age of AI.
This interview has been compiled for length and clarity.
What sparked your interest in leveraging AI within the healthcare sector?
The healthcare industry was not a tech fanatic or early adopter. There was a time when the healthcare industry lagged behind industries such as finance in adopting technology. That is clearly reflected in the type of experience offered to the consumer.
My view is very similar to what happened in developing countries, where it lags behind developed countries in adopting wire communications. Later, when Cellular got into the picture, they actually jumped over developed countries with how people with their connections turned out.
In my view, AI is its leap for healthcare. We're preparing it, the use cases are very transparent and the technology is there. I think this is a truly jumping healthcare opportunity.
He said the use case is transparent. Can you provide an example?
We have care management. There, nurse practitioners call people who are experiencing stressful times and are being treated for something like cancer. These nurse practitioners will call them and help them navigate their health care and try to remove stress from their lives. 40% of their time was once spent preparing phones. AI will lower it to 5%. So what about the other 35% of the time? They can actually spend more time with their customers.
Another example is that there are people calling patients and members, and the call itself usually requires X minutes. Then summarise the call twice that time. Now there is an AI that actually records calls and summarises them.
I hate to say this, but I always use this, so I say it: AI allows us to lose our job and take away the stupid things, allowing us to do a real, valuable job.
What is your number one agenda item as a top-performing and technology officer at CVS Health?
The best item is how do you change your healthcare experience? A good experience leads to people being better involved in their health. People who work in their health will lead to trusting medical care and doctors. Trust leads to changes in behavior in how people view their lives, and this behavioral change has ultimately been proven to lead to better health outcomes and longevity.
I know it's a long chain, but it all started with a better healthcare experience and that's our main focus right now. How can you completely change the experience?
So, how does AI play a role in changing experience and behavioral changes?
Behavioral changes come from a variety of things. For example, it comes from drug compliance, so you are actually disciplined about taking your medication every day. If AI helps identify people who are not disciplined based on past actions, we can actively engage with them and give them the tools they need to follow better drugs.
We identify the right things they should do next on their health journey. We want them to control their health journey, and AI allows that by simplifying health care. The reason people don't control their health isn't because they don't want to, but because it's so complicated. That's overwhelming.
There is much talk about the role AI already plays in health. There are also concerns about how it democratizes access and how technology can protect people's data. How are you working on this?
There is a proverb from my time working at Disney. It was from a science fiction writer who said, “The best technology is something people don't even know about.” Your facial technology is not particularly productive. The technology that takes away human touch is not something we are interested in at all in CVS. We are known for our human touch. And where we use technology, we need to reinforce the human touch, not replace it.
We are one of the first signatories of responsible AI in the last administration. When we think about responsible AI, we continue to do that. The principles we follow are really simple. There is no bias at all in the AI model. There is no hallucination in how our AI works. Use cases that use AI are clearly defined and enumerated. Not surprising, but are you using AI here? I know exactly what the model is doing.
Our most important philosophy of AI is that AI never makes a decision. period. Therefore, AI can help you gather information. AI helps to take away stupid work, administrative work we don't want to do, but decisions that affect our health are always brought about by qualified people.
And what about the data pieces?
When providing ownership of healthcare data to patients, members, or consumers, no one else should control it. I can agree to use my data on others, but it should be accessible.
In other words, think about it. Is there one place where I can go to my health record? That's insane. We want to help people own their health records, their health data. And we want to create full interoperability across stakeholders, between PBMs, providers, health systems and health plans. Data should flow without hurdles, and its interoperability will make the experience much better.
How do you define what it looks like in CVS, as you look at it five to ten years later, under leadership, specifically, under AI implementation?
I think AI and technology can dramatically change six dimensions of healthcare.
First, how do you improve access to healthcare? Why can't our pharmacists provide more and more health care? How can we use technology to enable consumers to have better and broader access to healthcare?
Second, how do you reduce healthcare costs? And technology plays an incredible role.
And when you're with a doctor, it must be clear what your profits are in real time. Healthcare is probably the only industry where you can think about where you are going to buy. So you go for surgery, but it's not clear what my total cost is. I want technology and AI to remove that confusion. Before you go through the process, we'll explain exactly what your costs will be.
You want to live a long life and you want to live a quality life. I think technology makes a big difference.
Which timeline are you talking about here to see this in person?
I don't think healthcare will be recognized in five years. Ten years later, it will be completely different.
You should be able to access the CVS app and click the button and actually consult an AI agent for your first consultation. AI agents connect to human doctors seamlessly in real time. The biggest problem people have with healthcare is that they are forced to do all their homework and all their navigation across a very complex ecosystem. What customers want is someone else to do all their homework and provide a one-stop shop.
What types of roles and skill sets will emerge in the healthcare system due to this major technological transformation?
The absolute worst thing a company can do is create a role as a Chief AI Officer. That's the worst thing a company can do. Did you create a company's mobile phone officer when your phone became ubiquitous? It's a mistake in the solution and the tool. I think companies need to create the best experience manager role.
I think existing roles will actually acquire new responsibilities. I believe AI will become an integral part of the daily lives of medical officers, service personnel, and customer support people. Everyone uses AI to improve their work in their daily lives.
