aiDoc Raises $66M to Advance AI Radiology Analysis

Aidoc Secures Significant Funding to Expand AI-Powered Diagnostic Tools

Aidoc, a leading innovator in artificial intelligence for medical imaging, is poised for substantial growth following a recent funding announcement. The company revealed on Tuesday that it has secured $66 million in a new investment round.

Developing AI-Driven Decision Support

Prior to this latest round, Aidoc had already accumulated approximately $67 million in funding throughout its five years of operation. The company specializes in creating decision support software leveraging the power of artificial intelligence.

This software is designed to analyze medical images, such as CT scans, to identify potential abnormalities and provide radiologists with guidance regarding patient care. Aidoc’s flagship algorithm, known as BriefCase, has received FDA approval for evaluating a range of critical conditions.

FDA Clearances and Regulatory Pathways

Specifically, BriefCase is cleared to assess patients presenting with intracranial hemorrhage, large vessel occlusion (a form of stroke), cervical spine injuries, pulmonary embolisms, including incidental cases, intra-abdominal free gas, and rib fractures.

These approvals were obtained through the FDA’s 510(k) premarket pathway, a streamlined process for technologies demonstrating substantial equivalence to existing market products. The majority of AI algorithms are approved via this route, as a dedicated regulatory framework for these technologies is still under development in the US.

A Platform Approach to AI Development

“Our company’s distinguishing characteristic lies in the breadth and depth of our capabilities,” explains Elad Walach, Aidoc’s founder and CEO. “Rather than focusing on a single solution, we dedicate our efforts to building a platform that can accelerate AI development at a remarkable pace.”

This platform-centric strategy has enabled Aidoc to achieve the highest number of FDA-cleared solutions currently available in the market.

Investment Rationale and Strategic Vision

The current funding round was spearheaded by General Catalyst, a prominent New England venture capital firm. Chris Bischoff, a managing director at General Catalyst, highlighted the strength of Aidoc’s team and its seven FDA clearances as key factors in their investment decision.

However, the firm was particularly drawn to Aidoc’s comprehensive approach: the creation of algorithms addressing a diverse spectrum of medical conditions.

The company’s ultimate goal is to assist hospitals in establishing a holistic AI strategy applicable to various conditions over time.

A Collaborative Partnership Model

“Their consultative approach, positioning them as a partner rather than a mere vendor, is noteworthy,” Bischoff states. “This isn’t simply a point solution; it’s a comprehensive workflow tool.”

Addressing the Challenges of AI Adoption

A significant challenge for Aidoc, and indeed for all AI startups in healthcare, is convincing hospitals and clinics to embrace AI integration into their existing workflows.

The Radiologist Shortage and the Role of AI

Aidoc’s software is specifically designed for radiologists, a specialty facing a concerning decline in numbers. While the US Bureau of Labor Statistics projects a 7 percent increase in radiologist demand by 2029 due to an aging population, the Association of American Medical Colleges forecasts a substantial shortage of specialists, including radiologists.

• This shortage could range from 17,100 to 41,900 professionals.

The United Kingdom is already experiencing a radiologist shortage, estimated between 27 and 37 percent depending on the region.

AI is increasingly viewed as a potential solution to mitigate this shortage, with the American Medical Association noting that “advances in artificial intelligence could improve the productivity of radiologists, pathologists, and others.”

AI as a Tool, Not a Replacement

However, AI is not a complete solution. Even Walach acknowledges that AI software cannot independently diagnose patients.

“A radiologist must always confirm the findings,” he emphasizes. “The AI solution functions solely as an aid to the radiologist.”

Currently, the prevailing narrative surrounding AI in radiology is that it serves as a tool to augment, not replace, the expertise of trained radiologists.

Academic research in this field has grown significantly, with an estimated 596 papers published in 2010, increasing to 12,422 by 2019.

Penetration and Post-Coronavirus Trends

Despite this research, AI adoption among radiologists remains moderate. A 2020 survey by the American College of Radiology revealed that only 30 percent of radiologists were utilizing AI in their practices, with just 20 percent of non-users planning to adopt it within the next one to five years.

The coronavirus pandemic prompted some hospitals to explore AI solutions due to staff shortages and increased patient volumes. However, Walach notes that this did not significantly boost Aidoc’s growth, although the company still experienced an upward trend.

He attributes the company’s growth to emerging research demonstrating the broader benefits of AI beyond initial diagnosis, such as reducing hospital stays by identifying patients suitable for discharge.

Downstream Benefits and Commercial Partnerships

“The key trend in this market is the growing evidence that AI delivers substantial downstream benefits,” Walach observes.

Aidoc has established a robust network of commercial partnerships, collaborating with nearly 600 hospitals and clinics, including Radiology Partners, Yale New Haven Medical Center, Cedars-Sinai Medical Center, UMass, University of Rochester Medical Center, LucidHealth, 4ways Healthcare, Telemedicine Clinic, Grupo Fleury, University Hospital of Basel, Sheba Medical Center, Hadassah Medical Center, and Global Diagnostics Australia.

The company projects that its technology will be implemented in 10 percent of US hospitals within the next two years.

Driving Trust and Adoption

Bischoff believes that Aidoc’s adoption by prominent healthcare centers can foster trust and accelerate the integration of AI into clinical practice.

“The ability to inspire confidence – this will facilitate deeper integration,” he explains. “There’s a ‘lighthouse’ effect in healthcare, where leaders’ actions often influence others.”

Future Growth and Investment

Headquartered in New York, with a research branch in Israel, Aidoc currently employs approximately 200 individuals. The new funding will be primarily allocated to research and development, with plans to expand the range of conditions evaluated by the company’s algorithms.