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Artificial intelligence (AI) has fundamentally reshaped the MedTech landscape in 2024, revolutionizing diagnostics, treatment and operational efficiency. AI-powered diagnostics have taken center stage, enhancing accuracy and speed. For instance, AI algorithms now detect anomalies in imaging studies with unprecedented precision, aiding radiologists and reducing diagnostic errors.
Personalized medicine has also seen remarkable advancements, with AI analyzing genetic, lifestyle and clinical data to recommend tailored treatment plans. This shift not only helps improve patient outcomes but also optimizes resource utilization.
In 2024, operational efficiencies (driven by AI) have alleviated administrative burdens on healthcare facilities. Automated scheduling, predictive maintenance of medical equipment, and resource allocation systems have streamlined workflows, cut costs and improved patient care.
Looking ahead to 2025, AI holds even greater promise. Emerging technologies such as generative AI for drug discovery and federated learning for secure, collaborative data analysis are set to expand AI’s impact. Moreover, as regulatory frameworks for AI in healthcare mature, adoption is expected to accelerate. The potential for AI in MedTech is vast, heralding a future where technology and medicine are seamlessly intertwined to deliver unparalleled healthcare solutions.
Here we discuss five top companies that have invested billions for integrating AI into their solutions, driving innovations that address both clinical and administrative challenges. These companies — Medtronic MDT, Boston Scientific BSX, Becton, Dickinson and Company BDX, GE HealthCare Technologies GEHC and Tempus AI TEM — are likely to ride the AI trend in 2025, potentially generating handsome returns for investors.
Image Source: Zacks Investment Research
Medtronic’s AI Integration: Revolutionizing Healthcare
MDT is actively incorporating AI into its solutions to elevate patient care and optimize operations. In surgical systems, Medtronic’s collaboration with Vizient has introduced an AI-powered surgical video management and analytics platform designed to enhance visualization and data-driven decision-making for improved surgical outcomes. Similarly, its partnership with CathWorks leverages AI to optimize cardiac procedures, improve diagnostic precision and boost patient outcomes. These advancements are expected to drive Medtronic’s growth by improving clinical results, streamlining workflows and solidifying its leadership in medtech innovation. The strategic integration of AI positions Medtronic to shape the future of healthcare through intelligent, data-driven solutions.
Medtronic, carrying a Zacks Rank #3 (Hold) at present, has an expected earnings growth rate of 4.8% for fiscal 2025. The company’s return on equity of 13.8% in the past 12 months significantly beat the industry’s 0.5% return. MDT also has a favorable dividend yield of 3.4% compared to the industry’s 0%. For fiscal 2025, its revenues are expected to grow 3.7%.
Shares of MDT have lost 2% in 2024.
Boston Scientific's AI Investment: Transforming Healthcare
BSX has invested billions in AI-driven health IT solutions to revolutionize healthcare delivery. A significant portion of the investments is allocated to health IT infrastructure automation to streamline operations and enhance clinical outcomes through advanced systems. It will optimize the infrastructures, strengthening the company’s technological foundation.
Investments are also made in AI-enhanced medical education tools, empowering healthcare professionals with cutting-edge knowledge, and in patient engagement solutions, fostering personalized care. These initiatives position Boston Scientific to improve operational efficiency, reduce costs and elevate patient outcomes, driving growth and solidifying its industry leadership.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an expected earnings growth rate of 12.7% for 2025. The company’s return on equity of 17.2% in the past 12 months significantly beat the industry’s 0.5%. Its earnings yield of 2.7% is favorable compared to the industry’s 1.4%. For fiscal 2025, its revenues are expected to grow 12.9%.
Shares of BSX have risen 56.9% in 2024.
BD's AI Integration: Shaping the Future of Healthcare
Becton, Dickinson and Company, popularly known as BD, has invested significantly in AI and machine learning to transform healthcare delivery. A substantial amount is directed toward health IT infrastructure automation, modernizing systems for improved efficiency. A major portion is also allocated to telemedicine solutions, BD aims to enhance remote patient care capabilities.
Additional investments are also made in fraud detection and prevention ensures the security of sensitive health data along with medical imaging and diagnostics advances diagnostic precision. These strategic initiatives promise to enhance patient safety, streamline workflows and expand telemedicine, positioning BD for significant growth in the evolving healthcare industry.
BD, carrying a Zacks Rank #3 at present, has an expected earnings growth rate of 9.8% for fiscal 2025, higher than the industry’s 6.4%. The earnings estimates for fiscal 2025 have improved 0.9% over the past 60 days.The company’s return on equity of 14.9% in the trailing 12 months is higher than the industry’s 12.9%. For fiscal 2025, its revenues are expected to grow 9%.
Shares of BDX have lost 6.3% in 2024.
Becton, Dickinson and Company price | Becton, Dickinson and Company Quote
GE HealthCare’s AI Integration: Driving Precision in Healthcare
GEHC is leveraging AI to transform medical imaging and diagnostics. By developing advanced algorithms, the company aims to enhance image quality and enable radiologists to detect anomalies with greater accuracy and efficiency. Additionally, AI-powered solutions are being deployed to optimize scheduling, resource allocation and workflow management, improving operational efficiency across healthcare facilities. These investments are expected to result in more precise diagnostics, better patient outcomes and streamlined operations. GE HealthCare’s focus on AI-driven innovation not only strengthens its market position but also underscores its commitment to advancing the future of healthcare.
GE HealthCare, carrying a Zacks Rank #1 (Strong Buy) at present, has an expected earnings growth rate of 8.6% for 2025. The company’s return on equity of 25.2% in the trailing 12 months significantly beat the industry’s 0.5% return. Its earnings yield of 5.4% is favorable compared to the industry’s 1.4% return. For 2025, its revenues are expected to grow 3.9%.
Shares of GEHC have returned 2.8% in 2024.
GE HealthCare Technologies Inc. price | GE HealthCare Technologies Inc. Quote
Tempus AI: Revolutionizing Precision Medicine with AI
TEM, a leader in healthcare technology, is advancing precision medicine through AI-driven innovations, particularly in oncology. By analyzing clinical and molecular data, Tempus develops personalized treatment plans that improve patient outcomes. Its extensive data library supports the creation of robust AI models, enhancing disease diagnosis and optimizing treatment.
Following a successful IPO and significant funding, Tempus has cemented its position as a frontrunner in AI-powered healthcare solutions. Several analysts express optimism about its revenue growth and profitability. Tempus AI’s focus on transformative AI applications is reshaping the future of personalized medicine.
Tempus, carrying a Zacks Rank #3 at present, has an expected earnings growth rate of 55.1% for 2025, much higher than the industry’s 20.5%. Loss per share estimates for 2025 have improved 42.8% over the past 60 days. For 2025, its revenues are expected to grow 28.9%.
Shares of TEM have lost 12.8% in 2024.
Tempus AI, Inc. price | Tempus AI, Inc. Quote
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