November 2026 · For small practices
State of AI in Healthcare
Since 2016, Y Combinator has backed 690 healthcare companies. In 2016, one in ten mentioned AI in its one-line pitch. In 2025, almost nine in ten did. That is the market that is about to call your front desk. Here is the trend, what it means, and how to start getting ahead of it.
Part 1. The trend
AI went from a feature to the default
Share of healthcare companies whose one-liner mentions AI, by the year they joined Y Combinator.
690 companies. 2026 is a partial year (75 companies so far), shown as an open dot.
When nearly every new company says "AI," the word tells you nothing. What matters is the job it does and how you will know it did it right.
It landed first on the work that runs your office
Share mentioning AI by who the company serves, 2025 and 2026 batches. Number of companies at right.
Small groups swing on one or two companies. Read the order, not the decimals.
Front desk, operations, billing and insurance went from 14% of new companies in 2016 to 2019 to 36% in 2024 to 2026. These are the jobs a small practice runs on one or two people, so those people are who the vendors are calling.
Part 2. What to expect
The next 12 months, in plain terms
More pitches, all alike
Every front desk and billing vendor now says AI. Expect the same promise from many names: answer every call, book every slot, code every claim.
AI wins where the result is easy to check
A call answered, a claim coded, an appointment booked. It is weaker where the answer takes judgment and slow feedback, like whether a patient is getting worse. That follows the argument from Princeton's Arvind Narayanan, who calls it a hypothesis.
The checking stays with you
A tool can do the task. Someone in your practice still reviews it, catches the misses and answers for the result. A tool is a win only if the total work goes down.
The rules keep moving
Payers change requirements, visit types get renamed, templates get edited. A tool trained on last quarter's rules keeps running on them until someone tells it.
The insurance side is automating too
Companies built for insurance and prior auth are adopting AI at 64% in the latest batches. Expect more automated back and forth with payers.
Part 3. What to do
Five steps before you buy anything
- Pick one job you can check.Missed calls, claim denials or scheduling gaps. Choose a task where you can count the result.
- Get a baseline first.For one week, write down how long that job takes and how often it goes wrong. You cannot tell if a tool helped without it.
- Name one owner.One person in the practice reviews the tool's output and answers for it. No owner means no one notices when it slips.
- Write down your definitions.Visit types, codes, payer rules and who decides. One shared list means staff and tool work from the same meaning, and you can see what changed.
- Start short.Run a 30 day trial or a month to month term. Prices are falling fast, so a long contract at today's price is a bet.
Seven questions for any vendor
- What exact job does it do, and what does it replace?
- How will I know it got it right?
- Who reviews the output, and how often?
- Who is responsible when it is wrong?
- Where does patient data go, and will you sign a BAA?
- How does it learn about rule changes, and who tells me?
- What happens to my data if I cancel?
Part 4. How to start getting ahead
The practices that come out ahead
They are not the ones with the most tools.
One tool at a time
Add the next one only after the first has a measured result.
A monthly 15 minute check
Look at the numbers, ask what changed in the payer or schedule rules, and update your list of definitions.
People stay on the hard calls
Use AI for the routine and the checkable. Keep a person on anything a patient finds sensitive or unclear.
Know your own workflow
The vendors are building for the average office. The practice that can say how its day really runs gets the most out of any tool.
Want a second set of eyes before you decide?
My Communication Audit looks at how your practice talks about what it does, with patients and with vendors. It is free for practices that reach out.
Book a 15 minute intro callSources and method. Company data comes from the public dataset by Garrison Research of healthcare companies in the Y Combinator directory, 2016 to 2026. "Mentions AI" is a yes or no tag on the one-line description, so it undercounts companies that use AI without saying so. Shares and segment groupings are calculated from that data. Y Combinator is one accelerator. It shows what early-stage founders think will sell, not what practices have bought.
The idea that AI improves fastest on tasks that are easy to verify comes from Arvind Narayanan. It is a conditional argument, not an established result. The steps and questions above are my own practical judgment, not legal or financial advice.