Smart Tech, Real Care: Inside America’s AI Health Boom

U.S. startups fuse AI with care delivery, reshaping patient access and clinical trust

10 Nov 2025

Artificial intelligence is moving from experiment to infrastructure in U.S. healthcare, as startups form alliances with hospitals and home-care providers to scale technologies once limited to pilot programmes.

In April 2025, Counsel Health raised $25mn in a Series A funding round to expand its AI-powered virtual care network. The company said it is working with regional health systems to improve chronic care management while maintaining doctor–patient relationships. “Our goal is to make quality healthcare scalable without losing the human touch,” said a company executive.

The following month, home-care technology firm Zingage secured $12.5mn in seed financing to automate administrative tasks such as scheduling and intake. The platform aims to help caregivers dedicate more time to patients, addressing the growing demand for in-home services as the U.S. population ages.

Reveal HealthTech, based between New York and Bangalore, raised $7.2mn in March to support hospitals in integrating AI into existing systems. The company focuses on enhancing, rather than replacing, established workflows. “AI isn’t just about algorithms; it’s about building trust in technology that supports people,” said its founder.

The surge in funding underscores a broader shift toward collaboration between technology startups and healthcare providers. Data from Crunchbase show that investment in AI health-tech reached about $10.7bn in 2025, an increase of roughly 24 per cent from the previous year.

Despite the momentum, challenges persist. Hospitals face steep integration costs, and some clinicians remain cautious about algorithmic decision-making. Yet industry leaders see the direction as irreversible: artificial intelligence is leaving the lab and embedding itself in daily medical practice, reshaping both the delivery and definition of care.