Payers could save between $80 billion and $110 billion in the next five years using existing artificial intelligence technology, according to a new report from the National Bureau of Economic Research.
Across the healthcare industry, AI technologies could save between $200 and $260 billion in the next five years, the report's authors, affiliated with McKinsey & Company and Cambridge, Mass.-based Harvard University, estimate.
Private payers could achieve around a 7 to 9 percent reduction in current costs with AI technology. According to the paper's authors, the areas with the biggest opportunities for savings with AI are healthcare management, including care management and reducing readmissions; claims management; and provider relationship management.
Around 20 percent of payers' AI-related savings come from reducing administrative costs, and the remaining 80 percent result from reducing medical costs.
Read the full report here.