AI Dominates HLTH Conference in Vegas Amid Industry Concerns

UPDATE: The annual HLTH Conference in Las Vegas is currently under scrutiny as AI takes center stage, sparking both excitement and apprehension among healthcare leaders. With over $6.4 billion in venture capital funding for digital health startups reported in the first half of 2025, the event has become a battleground for AI innovation and competition.

Attendees at HLTH are experiencing a palpable mix of enthusiasm and fatigue as nearly every company showcases its AI capabilities. Startups like Innovaccer and major players including OpenAI and Epic dominate the conversation, raising concerns about a potential AI bubble. “Everyone is framing themselves as the most generic, enterprise-wide agentic AI solution,” one health system executive lamented anonymously, reflecting widespread sentiment among industry professionals.

The conference floor features a massive “AI Zone” and an “AI Theater,” highlighting the overwhelming presence of AI across presentations and exhibits. Nate Gross, OpenAI’s healthcare lead, participated in a panel with tech giants including Microsoft and Google, signaling the increasing involvement of Big Tech in healthcare AI. However, Gross’s lack of detailed plans sparked concerns about the readiness of these companies to disrupt the industry effectively.

Despite the hype, major health systems express skepticism about the sustainability of AI startups. Many investors worry that established companies like Epic, which plans to introduce its own AI tools, could overshadow emerging players. “In my portfolio, people view OpenAI and Anthropic much more as a threat,” cautioned Blake Wu, a partner at NEA, emphasizing the urgency of adapting to this rapidly evolving landscape.

The conference’s extravagant setting at the Venetian Resort, complete with entertainment options like pickleball and puppy parks, contrasts sharply with the serious concerns about AI’s future in healthcare. Attendees are left questioning whether the flood of AI solutions will deliver tangible results or merely contribute to an inflated market.

Amid this uncertainty, some startups continue to thrive. On Monday, AI search startup OpenEvidence announced a significant $200 million funding round, reaching a valuation of $6 billion. This reflects a broader trend where healthtech companies are striving to secure market share in an increasingly crowded field.

While some argue that AI can revolutionize healthcare, others caution against overhyped promises. Healthcare stakeholders stress the importance of understanding clinical processes to succeed. “You could have the best technology in the world, but if you don’t understand how it needs to support a clinical process, you won’t win,” noted Mary Beth Navarra-Sirio, a VP at UPMC Enterprises.

Despite the challenges, there are hopeful signs for responsible AI development. Initiatives like the American Heart Association’s new AI assessment lab aim to validate predictive AI for cardiovascular diseases, showcasing a commitment to ensuring that AI tools are both effective and trustworthy.

As the HLTH Conference continues, the industry watches closely for signs of which AI innovations will endure and which may falter in the face of overwhelming competition. The outcomes of this conference could shape the future of healthcare AI, making it critical for stakeholders to stay informed on developments as they unfold.