Every January, the picturesque, snow-blanketed town of Davos transforms into a bustling hub for the World Economic Forum (WEF). For one week, multinational corporations, global leaders, and innovators converge to discuss the most pressing global issues. This year at WEF25, artificial intelligence (AI) and Donald Trump’s virtual presence emerged as dominant themes. Among these, AI in healthcare stood out as a key focus, offering transformative potential for the industry.
Trump’s Virtual Presence
Although Donald Trump did not attend WEF25 in person, his recent inauguration and virtual appearance late on Thursday influenced many conversations. Senior business leaders expressed cautious optimism about his leadership, while concerns about the potential global economic impact of tariffs tempered their confidence. These economic uncertainties added depth to discussions throughout the week.
AI in Healthcare: A Major Focus
AI’s potential to revolutionize healthcare was a highlight of WEF25. Galen Growth, the leading business intelligence platform for digital health innovation, participated in key discussions on AI in healthcare. These debates underscored AI’s role as a critical growth strategy for governments and businesses alike.
In 2024, 60% of all funding in digital healthcare technology went to companies building AI-driven solutions. However, ventures using Generative AI (GenAI) represent only 5% of private digital health companies globally. Of these, 23% focus on medical diagnostics. TechBio, a smaller but impactful segment, leverages GenAI for groundbreaking advancements, such as creating new drug candidates and summarizing complex unstructured data. Interestingly, 11% of TechBio ventures utilize GenAI technologies.
High-profile government initiatives like the UK’s “AI Opportunities Action Plan” and the U.S. government’s $500 billion Stargate program were prominent themes at WEF25, reflecting the global momentum behind AI adoption.
The Risk of a Growing Divide
While AI’s promise in healthcare is immense, it also poses risks. Discussions at WEF25 raised concerns about AI’s potential to deepen existing wealth and health disparities. Major tech players, such as Google, increasingly dominate the AI healthcare space, sidelining smaller innovators. Deals like General Catalyst’s partnership with AWS and Andreessen Horowitz’s TechBio fund with Eli Lilly highlight the growing consolidation of resources among industry giants.
A Conversation with Christoph Webber, CEO at Takeda
A key highlight of WEF25 was reconnecting with Christoph Webber, CEO of Takeda, who shared his insights into AI’s transformative role in drug discovery and development. Having previously collaborated in Singapore during his tenure at GSK, Christoph emphasized that AI’s primary value lies in enhancing speed and productivity.
Christoph outlined a two-step approach to leveraging AI: first, focusing on quick productivity gains, and second, rethinking roles to integrate AI alongside human expertise. He predicted that by 2030, 70% of today’s tasks could become obsolete, paving the way for fully digitized Phase 1 and Phase 2 clinical trials. However, trust issues and the complexities of human biology remain significant challenges.
Addressing Regulatory Challenges
A critical regulatory question discussed at WEF25 was patient data ownership. Christoph emphasized the need for clearer regulations to unlock AI’s full potential in healthcare while upholding ethical standards. Resolving this issue is key to ensuring AI’s success in delivering equitable and impactful healthcare solutions.
Pandemic Preparedness and Vaccination Challenges
On a broader note, Christoph highlighted global pandemic preparedness as an area of concern. Drawing from his extensive experience as the former head of vaccines at GSK, he pointed to the inverse relationship between successful disease eradication and vaccine resistance. This complexity underscores the need for cohesive international strategies to tackle public health challenges effectively.
Europe’s Digital Health Ecosystem Continues to Shine
Europe’s digital health ecosystem showcased its strength at WEF25, with Neko Health’s $260 million Series B funding round standing out. Led by U.S. investors, this round valued the Swedish digital health venture at $1.7 billion. This milestone highlights Europe’s rising prominence in global healthcare innovation. According to the Galen Growth 2024 Funding and Key Trends Report, Europe’s digital health funding grew by 27% year-on-year in 2024, setting a strong tone for the year ahead.
The Future of AI in Healthcare
As WEF25 concluded, it became evident that AI in healthcare is no longer a question of “if” or “when.” It is already reshaping the industry. However, the journey has only just begun. While AI offers immense opportunities, challenges like ethical concerns, regulatory gaps, and inequalities must be addressed to unlock its full potential.
Galen Growth is committed to tracking AI’s evolution in digital health, empowering clients with insights to navigate this dynamic landscape. By staying ahead of these developments, organizations can harness AI’s transformative capabilities to drive innovation and improve patient outcomes.