Healthcare is going through one of the biggest changes in history. Two powerful technologies — biotechnology (often shortened to biotech) and artificial intelligence (AI) — are coming together to transform how doctors prevent, diagnose, and treat illness.
At ARK Invest, we believe this shift could be as important as the rise of the internet or the mobile phone. It has the potential to make healthcare faster, cheaper, and more personalised than ever before.
This piece reports on original analysis by Nemo Marjanovic, PhD, ARK Invest. It has been independently written and edited by InvestEngine. For ARK’s original content and disclosures, visit europe.ark-funds.com.
Biotech: learning to read and write life’s code
Biotechnology is a mix of biology (the study of living things) and technology. It is used to tackle medical challenges, from creating new medicines to designing vaccines. One of the most important breakthroughs is DNA sequencing. DNA is the genetic code that acts like the instruction manual for our bodies, and sequencing means reading that code.
Twenty years ago, sequencing a human genome (the full set of DNA) cost billions of pounds and took years. Today, it can be done in hours for less than the price of a new smartphone. This massive drop in cost has opened the door to new treatments and tests that were once impossible.
Here’s how biotech is changing medicine:
- Early detection: By studying DNA, doctors can spot diseases like cancer earlier, often before symptoms appear.
- Personalised medicine: Instead of a “one-size-fits-all” treatment, doctors can tailor therapies to each person’s genetic makeup.
- Gene editing: New tools now allow scientists to change faulty genes, offering the chance to cure inherited conditions.
- New vaccines: Biotech played a key role in creating COVID-19 vaccines at record speed, showing what is possible when science and technology combine.
These advances could mean longer lives and better outcomes for millions of people around the world.
AI: giving healthcare supercharged brainpower
Artificial intelligence, or AI for short, is when computers are programmed to learn from data and make decisions like a human brain. AI systems can spot patterns and solve problems at incredible speed. In healthcare, this is powerful because hospitals and researchers produce huge amounts of data every day.
AI is already proving useful in many areas:
- Medical imaging: AI can scan X-rays (pictures of bones) and MRIs (Magnetic Resonance Imaging, a type of body scan) more quickly and accurately than doctors alone, sometimes detecting early signs of disease that humans might overlook.
- Drug discovery: Developing new medicines usually takes over a decade and billions of pounds. AI can model how molecules (the building blocks of drugs) interact with the body, helping researchers find promising treatments faster.
- Clinical decisions: AI can help doctors predict which treatments will work best for a patient by analysing their health records, lifestyle, and genetic information.
- Everyday support: From wearable devices that track heart rhythms to chatbots that provide mental health guidance, AI is becoming part of everyday care.
In short, AI brings speed and accuracy to areas where traditional healthcare has struggled.
Biotech and AI together: a powerful partnership
Individually, both biotech and AI are groundbreaking. But when used together, they create a revolution.
Biotech generates huge amounts of complex biological data — everything from genetic codes to protein structures. AI is the perfect tool to process this information and uncover new insights.
For example:
- Faster drug trials: A clinical trial is a test to see if a new medicine works. AI can analyse patient data in real time, helping companies run smarter and quicker trials.
- Personalised treatments: Biotech provides the genetic details, while AI matches these details with the right therapy.
- Precision surgery: AI-powered robotics (robots controlled by AI) are already assisting surgeons with delicate procedures, while biotech research ensures treatments are targeted at the root cause of disease.
Together, biotech and AI have the potential to cut costs, reduce timeframes, and make medicine more effective for everyone.
Challenges to overcome
Like all major innovations, there are challenges. Regulators (government bodies that check safety) must ensure new treatments are safe. Data privacy is crucial when working with sensitive genetic information. And healthcare systems need to invest in training and technology to use these tools properly.
There’s also the question of cost. Cutting-edge treatments can be expensive at first, but history shows that prices usually fall as technology improves. Just as DNA sequencing dropped from billions to a few hundred pounds, other biotech and AI solutions may also become affordable in time.
Why this matters for investors
For investors, this healthcare revolution represents both opportunities and risks.
Opportunities include:
- New markets: Companies developing gene therapies, AI diagnostic tools, or biotech-based medicines could see strong growth.
- Global demand: Ageing populations worldwide are increasing the need for healthcare innovation.
- Cost savings: Technologies that make healthcare cheaper and more efficient may be quickly adopted by hospitals and insurers.
But there are also risks:
- Regulation: New medicines and technologies face long approval processes.
- Competition: With so many players entering the space, only a fraction may succeed.
- Uncertainty: As with any early-stage technology, not every idea will work.
At ARK Invest, we believe the long-term potential outweighs the risks. The combination of biotech and AI could transform healthcare in ways we are only beginning to imagine.
Looking ahead
We are still in the early stages of this transformation. The next decade is likely to bring rapid progress, from gene-based cures to AI systems that support doctors worldwide.
For patients, it means more personalised and effective care. For healthcare systems, it means the chance to save money and improve results. And for investors, it represents one of the most exciting opportunities of our time.
Important information
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This article covers complex scientific topics that may use advanced terminology. We’ve simplified where possible, but some sections may require a higher reading level.
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