AI in Medical Billing Market Size to Attain USD 36.37 Bn, Rising at a 25.4% CAGR by 2034

The AI in medical billing market size is calculated at USD 4.68 billion in 2025 and is expected to reach around USD 36.37 billion by 2034, growing at a CAGR of 25.4% for the forecasted period.

Ottawa, Oct. 15, 2025 (GLOBE NEWSWIRE) -- The global AI in medical billing market size was valued at USD 3.73 billion in 2024 and is predicted to hit around USD 36.37 billion by 2034, rising at a 25.4% CAGR, a study published by Towards Healthcare a sister firm of Precedence Research. The global AI in medical billing market is driven by its increasing healthcare applications and growing patient volume.

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Key Takeaways

North America dominated the market in 2024.
Asia-Pacific is expected to witness the fastest growth in the AI in medical billing market during the forecast period.
By deployment mode, the cloud-based segment dominated the market in 2024.
By deployment mode, the on-premises segment is expected to be the fastest growing during the forecast period.
By application, the revenue cycle management segment dominated the market in 2024.
By application, the fraud detection segment is expected to witness the fastest growth during the forecast period.
By end-user, the hospitals & clinics segment dominated the global market in 2024.
By end-user, the healthcare payers segment is expected to witness the fastest growth during the forecast period.

What is AI in Medical Billing?

The AI in the medical billing market is driven by the growing need for greater accuracy, compliance, and efficiency within the complex healthcare revenue cycle. The AI in medical billing encompasses the use of artificial intelligence technologies like automation, machine learning, and natural language processing (NLP) to streamline and enhance the medical billing procedure. Moreover, different types of AI tools and platforms are being used to enhance, automate, and optimize various tasks such as repetitive administrative tasks, medical coding, billing analytics, revenue cycle management, claim processing, as well as fraud detection.

What are the Major Growth Drivers Market?

The growing healthcare complexities act as the major driver in the AI in medical billing market. Due to continuous changes in the regulatory standards, coding guidelines, and payer rules, along with staff shortage and increasing patient volumes, the complexities are increasing, promoting the use of AI platforms to overcome these challenges. At the same time, increasing administrative costs, growing medical data, billing errors, frequent claim denials, and increasing demand for revenue cycle optimization are other market drivers.

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What are the Key Drifts in the Market?

The AI in medical billing market has been expanding due to the growing funding, acquisitions, and investments to launch and enhance the use of various AI tools and systems in the healthcare sector.

In June 2025, to overcome the expensive and invisible burden of the healthcare that is administrative phone calls, a total of $15 million in new funding was announced by SuperDial. This funding will be utilized to scale the company’s voice AI platform to automate high-friction insurance calls, which cost billions of dollars every year to the billing companies and provider organizations.
In May 2025, the Healthcare Revenue Cycle Management Business of i3 Verticals, Inc. and its associated proprietary technology were acquired for $96 million by Infinx. This acquisition will help the company to expand its services into new customer segments like academic medical centers and other large provider groups.
In April 2025, a total of $11 million in a Series A funding round was secured by RapidClaims, where this fund will be used to leverage cutting-edge automation and machine learning technologies to transform healthcare billing and claims processing, which is the ultimate mission of the company.
In January 2025, around $55 billion in assets under management was announced as a strategic investment from affiliates of New Mountain Capital, LLC by Access Healthcare, which is a leading technology-enabled platform for revenue cycle management (RCM). To expand the Access Healthcare capabilities in product development, artificial intelligence, workflow automation, and its expansion into new markets will be supported by this investment.

What is the Significant Challenge in the Market?

The data security concern is the major limitation in AI in the medical billing market. A vast amount of patient information is stored by these AI platforms, which increases the risk of cyberattacks or data breaches, limiting their use. Additionally, the lack of skilled personnel, high cost, and integration complexities are some of the other market challenges.

Regional Analysis

Why did North America Dominate the Market in 2024?

In 2024, North America captured the biggest revenue share of the AI in medical billing market, due to the presence of advanced healthcare infrastructure, which increases the use of AI tools in the billing procedures. They were used to minimize the complex billing process, claim rejections, and automate coding, where their development and utilization were supported by the healthcare investments. Moreover, the companies innovating new AI platforms for fraud detection and revenue cycle management also contributed to the market growth.

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What Made the Asia Pacific Fastest Growing Region in the Market in 2024?

Asia Pacific is expected to host the fastest growth in the AI in medical billing market during the forecast period, due to the expanding healthcare sector, which is increasing the adoption of advanced technologies, supporting the healthcare digital transformation. Therefore, AI is being used to enhance medical billing efficiency, to deal with its growing complexities due to increasing patient volume. Moreover, industries and startups are investing in these technologies, encouraging their innovations, and promoting market growth.

Segmental Insights

By deployment mode analysis

Which Deployment Mode Type Segment Held the Dominating Share of the Market in 2024?

By deployment mode, the cloud-based segment held the dominating share of the AI in medical billing market in 2024, due to its enhanced scalability across healthcare facilities. At the same time, it offered fast implementation and remote access to the billing systems. Additionally, data security and affordability enhanced its use.

By deployment mode, the on-premises segment is expected to show the highest growth during the upcoming years. These modes are being used to store a vast amount of billing and patient data. Moreover, to overcome the data security and regulatory challenges, the healthcare facilities and industries are investing in them, promoting their adoption and development.

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By application analysis

What Made Revenue Cycle Management the Dominant Segment in the Market in 2024?

By application, the revenue cycle management segment led the AI in medical billing market in 2024, due to a growth in the administrative burden. This, in turn, increased the use of AI to reduce claim denials and enhance automated billing. It also helped in reducing billing errors, payment delays, and optimizing medical billing strategies.

By application, the fraud detection segment is expected to show the fastest growth rate during the forthcoming years. Due to increasing billing fraud and phantom claims, the use of AI in fraud detection is increasing. They help in detecting fraud schemes and offer real-time surveillance of billing activities.

By end-user analysis

How the Hospitals & Clinics Segment Dominated the Market in 2024?

By end-user, the hospitals & clinics segment held the largest share of the global AI in medical billing market in 2024, due to increased patient volume. This, in turn, increased the complexities in the billing process and financial pressure, encouraging the use of AI technologies. It also helped in reducing the administrative burden and enhanced billing accuracy and speed.

By end-user, the healthcare payers segment is expected to show the highest growth during the predicted time. They are increasing the use of AI to enhance the billing activities, reduce claim denials, and minimize manual errors. They are also being used to detect and prevent fraud, where the companies are also contributing by developing new AI platforms in compliance with regulatory standards.

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Recent Developments in the Market

In September 2025, a newly trademarked advanced automation will be revealed by Jorie AI at HLTH 2025 in Las Vegas, where it will demonstrate the resolution of denials within a minute and will highlight the most complex challenges in the industry. Moreover, it is expected to be the first and only fully automated, end-to-end revenue cycle automation.
In May 2025, to optimize the administrative workflows and solidify financial performance to support the hospitals and health systems, an AI-powered revenue management platform was launched by Smarter Technologies.
In March 2025, a collaboration between R1 and Palantir Technologies was announced to revolutionize healthcare financial performance, with the launch of an advanced AI lab that is R37, which will develop intelligent automation solutions to overcome healthcare reimbursement challenges at enhanced speed and scale.

Cryopreservation and Platelet Storage Technologies Market Key Players List

Claimocity
Amperos Health
CollaborateMD
Cedar
ImagineSoftware
Enable Healthcare, Inc.
Maverick Medical AI
Jorie AI
Enter. Health
ReferralMD
Matellio
PracticeSuite

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Segments Covered in The Report

By Deployment Mode

Cloud-based
On-premise

By Application

Automated Billing & Documentation
Revenue Cycle Management
Claims Processing
Denial Management
Fraud Detection
Others

By End-User

Hospitals & Clinics
Healthcare Payers
Ambulatory Surgical Centers
Others

By Region

North America

U.S.
Canada

Asia Pacific

China
Japan
India
South Korea
Thailand

Europe

Germany
UK
France
Italy
Spain
Sweden
Denmark
Norway

Latin America

Brazil Mexico
Argentina

Middle East and Africa (MEA)

South Africa
UAE
Saudi Arabia
Kuwait

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About Us

Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics, with a strong emphasis on life science research. Dedicated to advancing innovation in the life sciences sector, we build strategic partnerships that generate actionable insights and transformative breakthroughs. As a global strategy consulting firm, we empower life science leaders to gain a competitive edge, drive research excellence, and accelerate sustainable growth.

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