Artificial intelligence (AI) has dramatically shaped both manufacturing at large and the production of advanced medical devices. It’s now common for many factories to have robots, sensors with predictive algorithms, and other AI-based innovations that assist in every part of the workflow. In addition to producers using AI in manufacturing, many healthcare products themselves have AI features. How has this technology enhanced these offerings and the locations that make them?

Expanding Production Possibilities

Even when decision-makers are interested in AI in manufacturing, they may not have the resources to implement it as soon as they want. That common reality has created the need for the “AI-as-a-service” market. Although specifics vary by vendor, these offerings usually enable clients to pay set fees for access to artificial intelligence capabilities or tools. Additionally, tech companies typically have cloud-based products, so users can access them anywhere. That feature also makes software updates quick and seamless.

A recent market analysis forecasts that the worldwide market for such services will show a 36.2% compound annual growth rate from 2024 to 2032. That finding highlights the already strong and growing demand.

When manufacturers take advantage of AI-as-a-service arrangements, it’s significantly easier to implement artificial intelligence. Whether companies do so to make one particular smart medical device or several, setup and scalability are straightforward and tailored to individual producers’ needs.

Many manufacturing plants have already benefited from similar as-a-service arrangements for robots or other advanced machines. Paying a flat monthly fee allows interested parties to focus on seeing how these improvements could enhance their operations rather than spending so much time acquiring the necessary capital.

Additionally, vendors may allow their customers to add or remove AI features as business needs change. That is a desirable prospect if decision-makers are curious about newer artificial intelligence technologies—such as generative AI—but want to see positive outcomes first before making more significant investments.

Similarly, suppose a medical device maker wins a lucrative contract to provide AI-powered products to a large hospital system but does not immediately have the internal capacity to fulfill that obligation. Taking the as-a-service route by engaging with an appropriate vendor could provide the quick scalability required to ramp up production.

Maintaining or Gaining Competitiveness

Just how prominent is AI in medical devices? As of August 2024, the U.S. Food and Drug Administration (FDA) had authorized 950 such products, emphasizing how these offerings are becoming more common and widely available. All those products had met the regulators’ premarket requirements, which include reviewing overall safety and effectiveness within the scope of intended use cases.

Companies may use AI in manufacturing to achieve high output and fewer quality control issues. Additionally, their leaders are also more frequently deciding to integrate artificial intelligence into the medical devices themselves. Many stakeholders link the technology to innovation. Current or potential investors, in particular, want to align themselves with companies perceived as being on the cutting edge. That explains why offering AI medical devices could help companies build or strengthen their reputations as ones to watch now and in the future.

Artificial intelligence could also assist companies in increasing their traction in a crowded global marketplace. Consider how six of the world’s 10 highest revenue-generating pharmaceutical companies are in the United States. Changing that fact takes time, but if an organization’s business model centers on smart medical devices that use AI, that could increase its prominence.

Some AI devices recently cleared or granted authorization by the FDA include a product that can detect all three of the most common types of skin cancers and another that can rapidly diagnose and predict sepsis in newly admitted patients.

Strategically applied artificial intelligence can address many long-standing challenges or help providers reach more confident decisions. Such outcomes increase the chances of people who need medical care getting the most appropriate treatments sooner. However, the device companies making such solutions can boost their profit potential by getting people interested in these pioneering products.

Enabling Personalized Medicine

One of the most significant advantages of using AI in manufacturing is that it can allow more visibility. Leaders can rely on advanced algorithms to spot abnormalities such as misaligned equipment, production bottlenecks, or other issues that slow production or compromise quality control efforts. Production statistics can also show them which products are most in demand at particular times.

Many medical devices offer similar visibility by tracking patients’ real-time statistics. Although the products are primarily in hospitals and cost thousands of dollars, some manufacturers are making them more accessible to everyday individuals who care about their health. Whether someone has high blood pressure or is at an increased risk for heart disease based on their family history, medical devices can help people manage their well-being and share relevant statistics with their providers. Then, those professionals can create targeted care plans.

Some manufacturing companies have also moved beyond AI to explore other technologies that help them create products for individual patients. For example, one company specializes in a relatively new possibility called point-of-care additive manufacturing. It can make products such as patient-specific cutting guides or implants at scale, rather than producing them for massive target audiences.

The business model revolves around providing a service to those interested in personalized medical devices who cannot feasibly manufacture them internally. The facility—which makes metal products with 3D printing—cost millions to build and spans 10,000 square feet.

Many familiar with the matter believe personalized medicine is the future. No matter if the products under that umbrella need AI to work, producing them requires significant investments. However, an alternative is for manufacturers or other relevant parties to work with dedicated service providers that have the specialized expertise and infrastructure ready to use.

Growing More Influential and Impactful

Whether people discuss AI in manufacturing more broadly by delving into the convenient cobots, robust algorithms, and other options that accelerate production or turn their attention to AI in medical devices, it’s clear that artificial intelligence will continue upending the industry and all who depend on it.

Manufacturers must remain agile during this period to respond quickly to meet new market needs and develop products that capture stakeholders’ attention. Succeeding in these aims will help them stay competitive in a fast-paced and evolving environment.