The company announced Tuesday (July 29) that it had raised $243 million in a new funding round. Ambience says the funding will help it expand its artificial intelligence (AI) platform, which helps streamline administrative tasks in the healthcare field.
“Documentation has long been a source of friction,” CEO Michael Ng said in a news release. “Ambience is turning it into a source of strength — transforming how clinicians deliver care, how administrators run operations, and how patients experience the system.”
According to the release, Ambience’s technology helps clinicians by automating documentation with “ambient listening,” helping reduce “cognitive burden” and documentation time, giving clinicians more time to focus on best patient care.
While the company did not provide a new valuation, the $1 billion figure was included in a Bloomberg News report on the new round.
PYMNTS looked at the role AI plays in the healthcare sector earlier this month in a conversation with Autonomize AI CEO Ganesh Padmanabhan.
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“We are in a unique time in history,” he told PYMNTS CEO Karen Webster. “Until large language models specifically came about, it was impossible to distill information out of complex medical clinical documentation and contextualize it for different workflows. Now it’s possible.”
But as Webster noted, agentic AI has become the latest talking point no matter its real-world results in crucial areas.
“It used to be generative AI, now it’s agentic AI,” she said. “But this is still an emerging technology. Why is now the time for it to be applied in healthcare, given that a lot of the industry is still trying to get its arms around basic automation?”
“Healthcare is one of those industries with a lot of knowledge work,” Padmanabhan replied. “Data is often created by humans for other humans to consume, which makes automation innately harder.”
At the core of the problem is a healthcare industry drowning in administrative burdens. The U.S. spends an estimated $1.5 trillion on healthcare administration each year, a cost that leads to delayed care, clinician burnout and poor patient experience.
Meanwhile, research by PYMNTS Intelligence shows the pitfalls of relying too much on manual solutions in healthcare in an age of automation.
The research shows that 67% of executives and decision-makers in healthcare payer organizations say their companies’ manual payment platforms are actively reducing efficiency. And 74% of these professionals said these platforms increased their organizations’ exposure to risks of regulatory fines and penalties.
