Rad AI raises $60M to combat radiologist burnout with AI imaging tools

Rad AI secures $60 million in series C funding to expand its healthcare imaging AI solutions that already process nearly half of all medical imaging in the United States. The oversubscribed round values the company at $525 million and will fuel improvements to its workflow automation technology designed to combat radiologist burnout—a critical development as CT scan volume has skyrocketed from 3 million to 80 million annually since the 1980s, leaving almost 90% of radiologists at or beyond capacity.

The big picture: Rad AI has raised $60 million in series C funding to advance its AI-powered radiology solutions already used on approximately 50% of U.S. medical imaging.

• The funding round was led by Transformation Capital with participation from existing investors including Khosla Ventures, World Innovation Lab, and others.
• This investment values the healthcare AI company at $525 million, positioning it as a major player in the medical imaging AI sector.

Key details: The fresh capital will accelerate Rad AI’s development as a leading AI-driven workflow platform in healthcare, according to CEO Doktor Gurson.

• The company plans to enhance its radiology workflow technology and streamline reporting processes to combat clinician fatigue and burnout.
• Investment will also support improving patient care through more timely diagnoses enabled by AI automation.

Important stats: Rad AI’s technology addresses a critical need in radiology, where workloads have increased dramatically over recent decades.

• CT scans in the U.S. have increased from approximately 3 million in the 1980s to about 80 million annually today.
• Surveys reveal 88.4% of radiologists are either at capacity or overworked and overextended.

Behind the numbers: Rad AI has built a portfolio of AI solutions that significantly reduce radiologist workload while improving follow-up care.

• The company’s first product, Rad AI Impressions, was developed in 2018 as the first generative AI solution in healthcare.
• Its newest offering, Rad AI Reporting, reduces dictated words by up to 90%.
• Rad AI Continuity has shown impressive clinical impact by increasing follow-up rates from 30% to 75% or more.