AI in Healthcare: A Costly Digital Arms Race Rather Than a Cure

The promise of AI streamlining pre-authorization in healthcare has backfired, turning into a costly tug-of-war between providers and insurers. Rather than simplifying approvals, both sides now deploy AI to outmaneuver each other—providers to speed up approvals, insurers to intensify scrutiny. This feedback loop inflates costs across the system, leaving patients with no benefit. The result: a technology meant to heal is adding fuel to the fire.