Artificial intelligence and machine learning continue to make their mark on nursing home and assisted living communities, with both technologies being implemented in health and safety tools for residents, as well as for streamlining staffing and operations. It’s perhaps no surprise then that investment in AI and ML in healthcare rose over the last two years, according to new research from commercial real estate and investment company Jones Lang LaSalle.
Total U.S. investment in AI and ML healthcare investment rose overall in the last few years: from $8.6 billion in 2020 to $13.9 billion in 2021, and down slightly in 2022 to $10.1 billion, according to JLL. This investment has been used to power several advancements in senior living and nursing homes, including health and safety monitoring via sensors and other gadgets.
“AI is transforming all industries and healthcare is no exception,” said Amber Schiada, Senior Director, Head of Americas Work Dynamics and Industries Research at JLL. “The impact of AI and ML on senior housing goes hand-in-hand with the impacts on the broader healthcare industry including for patients: better personalized care, medication tracking, and wellness tracking and for the business: improved data analysis, cost savings, and more efficient workplaces.”
AI and ML aren’t without challenges, however: researchers noted that privacy, accuracy and performance as the biggest issues facing the technological implementations in healthcare. Nursing homes are no stranger to these, with one expert recently noting the error potential of AI in electronic health records, leading to potential gaps in patient care. And 20% of Americans cited privacy as one of their main concerns with AI tech used in healthcare.
On a more positive note, JLL cited many of AI’s benefits, including streamlining record taking and patient communication, which eases the impact of staff shortages. For example, UK-based company Cera, with a funding round in 2022, provides an app that uses ML to reduce the time healthcare workers spend on administrative work.
These new technologies also have a role in predictive analytics: For example, Monogram Health, which received $375 million in January 2023 from companies including CVS Health, uses predictive analytics to improve kidney care and slow disease progression.
In the EHR space, private equity firms and healthcare and technology players are taking notice. Microsoft is collaborating with Epic on AI integrations in its Azure Cloud. Bain Capital has invested in multiple healthcare management platforms such as LeanTaaS, which uses AI to improve utilization of space and decrease wait times.
Investors also see the value of AI in terms of streamlining real estate operations, something that also could impact the building of new nursing homes and assisted living facilities, researchers said.
