JP Morgan Investment Report: AI Now Dominates Health Tech Investment
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AI-focused health tech deals now account for roughly three-quarters of overall health tech funding and the new J.P. Morgan sector report explicitly frames AI as the dominant theme in HealthTech investing for 2025. This dominance is most visible in data‑rich, workflow‑embedded applications that target administrative efficiency and clinical productivity rather than “pure” clinical AI alone.
What the JPM report actually says
J.P. Morgan’s 2025 “Sector Spotlight: Healthcare Technology” notes that AI and automation are central to nearly every major HealthTech trend, from patient access to back‑office operations.
The report highlights that AI‑enabled offerings are increasingly standard among new HealthTech startups and that companies “building with AI” trade at a valuation premium to non‑AI peers.
Funding share: AI now dominates
A companion analysis of deal flow finds that around 75% of HealthTech and tech‑enabled healthcare services deals funded in 2025 were AI‑focused, i.e., explicitly built around AI or heavy automation.
Within venture, Series B has become the main locus of AI HealthTech capital (over 60% of AI‑focused rounds), signalling investor willingness to back large “TAM‑disrupting” AI plays earlier in the scaling curve.
Where AI capital is concentrating
JPM’s material and related commentary flag two priority use‑case clusters: administrative efficiency (billing, coding, documentation, prior auth) and clinical productivity (decision support, triage, imaging, predictive analytics).
Ambient AI for transcription/documentation and hospital/IDN analytics platforms are repeatedly cited as attracting several large venture rounds in 2025, alongside AI‑heavy virtual care and RCM tools.
Implications for non‑AI HealthTech
Commentary around the report notes that this capital concentration risks marginalising non‑AI health tech ventures, which may face increasing difficulty raising unless they can clearly articulate data/AI leverage or defensible niches.
At the same time, J.P. Morgan’s broader healthcare pieces stress that AI is now viewed as an enabling layer across the sector rather than a standalone vertical, suggesting many “non‑AI” plays will need to embed AI capabilities to remain attractive.
Takeaways for an investor / advisor lens
Expect continued valuation premiums for AI‑native, data‑rich platforms with clear workflow integration and ROI, especially around admin automation, clinical ops, and enterprise analytics.
Non‑AI HealthTech assets will increasingly be diligenced on their data assets, integration points and AI‑readiness, even if their current product is not marketed as AI.