Urgent Update: AI Dominates HLTH Conference Amid Growing Concerns

URGENT UPDATE: The HLTH Conference, taking place in Las Vegas, has become a battleground for the future of healthcare technology, as AI dominates discussions amid rising concerns of an impending bubble. Nearly every exhibitor claims an AI focus, creating a paradox of excitement and fatigue among healthcare executives.

This year’s event, dubbed the “Dreamforce of healthcare,” showcases companies like Innovaccer and Suki alongside tech giants such as Samsung and Johnson & Johnson. Yet, executives are voicing apprehensions about the overwhelming presence of AI, with many questioning if this trend can be sustained. “Everyone is framing themselves as the most generic, enterprise-wide agentic AI solution. It makes me want to vomit,” lamented one anonymous health system executive.

With venture capital flowing into healthcare AI, digital health startups attracted a staggering $6.4 billion in the first half of 2025, with 62% of that funding directed towards AI initiatives. However, the dominance of established players like Epic, which is developing its own AI tools, raises questions about the long-term viability of newly funded startups.

Notably, Nate Gross, OpenAI’s new healthcare lead, shared insights during a panel featuring Microsoft, Google, and Nvidia. Despite the lack of detailed strategies from OpenAI, the presence of such a heavyweight in healthcare AI has intensified competition. “In my portfolio, people view OpenAI and Anthropic much more as a threat than people have ever viewed Amazon or Microsoft,” said Blake Wu, a partner at NEA.

Throughout the conference, the atmosphere oscillated between celebration and caution. The expansive AI Zone featured a dedicated AI Theater for presentations, but many attendees expressed fatigue over the barrage of similar pitches. The sentiment was echoed in a LinkedIn post by healthcare marketing advisor Brett Jansen, who noted, “Every booth at HLTH sounds exactly the same. ‘AI-powered platform for healthcare transformation.’ Cool. So is literally everyone else here.”

Despite the challenges, some innovative companies made headlines. Medical AI search startup OpenEvidence announced a groundbreaking $200 million raise at a valuation of $6 billion, marking the largest funding announcement at HLTH. Additionally, Hyro secured $45 million to enhance its “responsible AI agent platform,” signaling confidence in the sector.

Healthcare leaders are also prioritizing responsible AI development. The American Heart Association unveiled an AI assessment lab in collaboration with Dandelion Health to validate predictive AI for cardiovascular diseases. This initiative underscores the growing emphasis on ensuring that AI technologies support clinical processes effectively.

As the conference continues, the spotlight remains on how healthcare organizations will navigate the tension between innovation and market saturation. Attendees are eager to see whether emerging startups can withstand the competitive pressure from both established giants and new entrants in the AI space.

This year’s HLTH Conference is not just a showcase of technology; it is a reflection of the challenges and opportunities within the rapidly evolving healthcare landscape. As the event unfolds, stakeholders are left to ponder the future viability of AI in healthcare, making it a pivotal moment for the industry.