Still, there are some industries that seem to remain mostly untouched by artificial intelligence. Take healthcare as an example. Perhaps the industry’s corporate guardians are a bit hesitant to turn over something as important as someone’s life to technology<\/a> that still isn’t outright guaranteed to do the right thing.<\/p>\n Now dig deeper. While certainly not as high-profile as OpenAI’s ChatGPT or Nvidia’s autonomous vehicle tech currently being test-driven by carmakers like Toyota Motor and Rivian Automotive, several healthcare companies are indeed commercializing AI. It’s just still early days for this aspect of the business; users are taking things slowly.<\/p>\n This fairly slow pace of adoption isn’t a bad thing, though. It means interested investors can still get in near the ground floor.<\/p>\n Here are two promising AI-powered healthcare stocks<\/a> to consider stepping into before they take off.<\/p>\n Image source: Getty Images.<\/p>\n Recursion Pharmaceuticals<\/p>\n Developing a new drug isn’t cheap. Estimates range from hundreds of millions of dollars to over $1 billion apiece, with most of the ones that begin clinical trials never even getting close to an actual approval; most failures are seen in phase 2 (of 3) clinical testing. It’s such an expensive waste that some fantastic prospective drugs may forever remain undeveloped, or even tested in pre-clinical trials.<\/p>\n What if, however, there were a way to pre-test the potential of a new drug without actually risking any real time or significant funding in doing so? There is. Recursion Pharmaceuticals (RXRX<\/a> 3.35%) built it.<\/p>\n It’s called Recursion OS. Using 36 petabytes (36 million gigabytes) of biological and chemical data, Recursion OS can virtually test how a particular drug idea might perform in a real-world setting at a fraction of the cost of an actual clinical trial.<\/p>\n It’s not a replacement for a clinical trial, to be clear. The FDA and other nations’ regulatory agencies will still require actual patient testing for any drug. But when the odds of success or failure can be determined in a matter of hours for a pittance rather than found out the hard way — over the course of years at a cost of hundreds of millions of dollars — Recursion Pharmaceuticals’ platform helps pharmaceutical companies<\/a> know where to focus, and what to not bother developing.<\/p>\n Its business model is twofold. Recursion is working on some drugs of its own, including a handful of cancer therapies in early-stage testing. It’s also working with established outfits like Roche and Sanofi, granting them paid access to Recursion OS in hopes of the co-development of a new drug.<\/p>\n There’s no real revenue to speak of yet. The company’s top line through the first six months of this year is just under $34 million, versus a net loss of $374 million. These sorts of results, of course, fuel plenty of volatility for the stock, which is further fueled by an unclear and ever-changing future. Just bear in mind there’s nothing unusual about sizable or persistent losses<\/a> for young drug developers.<\/p>\n And for what it’s worth, the analyst community thinks Recursion Pharmaceuticals’ bright future isn’t too far down the road. It expects revenue to triple between now and 2027, halving its losses in the process en route to profitability.<\/p>\n Tempus AI<\/p>\n The other AI-powered healthcare company worth a closer look is Tempus AI (TEM<\/a> 4.97%).<\/p>\n Its tech isn’t nearly as eye-popping as Recursion’s; Tempus’ solutions are far more practical and accessible to caregivers. But this makes them immediately more marketable … and profitable. The $13 billion company did $693 million worth of business last year, up 30% year over year. While still operationally in the red, most of last year’s losses stem from stock-based compensation and employment taxes. If it continues to grow as expected, Tempus AI could outgrow these losses and move into the black as soon as fiscal 2027.<\/p>\n<\/p>\n