International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Volume 8 Issue 5
September-October 2026

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The Economics of Artificial Intelligence in U.S. Healthcare: Productivity Gains, Value-Chain Reconfiguration, and the Future of Medical Labor

Author(s) Mr. Saavya Sharma, Mr. Shreyansh G
Country India
Abstract Artificial intelligence (AI) offers one of the more credible near-term routes to higher productivity in theU.S. healthcare sector, an industry long marked by high costs, negative labor-productivity growth, andpersistent quality shortfalls. This paper synthesizes and extends two recent contributions from theNBER volume The Economics of Artificial Intelligence: Health Care Challenges. Using detailed
domain-level estimates, Sahni and coauthors show that wider adoption of today’s machine-learning andnatural-language-processing tools could generate $200–360 billion in annual net savings (2019 dollars)within five years—roughly 5 to 10 percent of total spending—without sacrificing quality or access. Atthe same time, a task-based reading of physician work, following the Autor–Levy–Murnane frameworkand developed by Dranove and Garthwaite, indicates that AI will complement some specialties whilesubstituting for others, particularly those whose core tasks are closer to pattern recognition on structureddata. Historical patterns of third-party intervention in medical decision-making, together with
well-documented organizational and industry-level barriers, imply that diffusion will be uneven and thatthe distribution of economic rents along the value chain is far from predetermined. The paper expandsthe original analyses with additional discussion of general-equilibrium effects, specialty-level exposure, implementation cost recovery, and policy design. Realizing the productivity gains will requiredeliberate attention to incentives, data infrastructure, talent, and the political economy of professionalstatus.
Published In Volume 8, Issue 5, September-October 2026
Published On 2026-09-07
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E-ISSN 2582-2160
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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