The AI boom could boost Epic's position, execs say. Here's where AI startups can still win

The AI boom could enhance Epic's position in the health tech market, as executives believe. Epic has made significant strides in integrating AI capabilities into its electronic health record (EHR) systems. With 43.7% of the acute-care EHR market share, Epic now oversees over 3,700 hospitals and manages medical records for more than 325 million patients.

The company has developed AI solutions like AI Charting, which automatically drafts clinician notes, Art for Clinicians, an AI scribe solution, and Penny, a generative AI copilot designed for revenue cycle management. Furthermore, Epic has developed an AI solution for patients called Emmie, and a medical foundation model named Curiosity, along with a consumer hub called MyChart Central.

Health system leaders have expressed growing confidence in Epic's AI roadmap, with 85% of their customers currently using generative AI across Art, Emmie, and Penny. However, there are still opportunities for AI startups, particularly in specific functional areas where Epic may not have as strong a presence. These areas include discharge and transitions of care, quality reporting, imaging, smart intake, and new data types such as imaging and computer vision.

Startups that can demonstrate a significant return on investment, integrate easily, and possess deep clinical expertise may outperform Epic in these niches. Non-profit community hospital systems are more receptive to partnering with startups compared to for-profit systems. Overall, the survey results from Redesign Health indicate that health system executives see significant opportunities for external vendors to compete with Epic in specific areas where the giant may have limitations.