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UnitedHealth Group Incorporated (UNH), the largest health insurer in the United States, is integrating artificial intelligence (AI) into its operations to improve healthcare delivery and management. The company aims to enhance patient outcomes and efficiency amid rising healthcare costs and evolving patient expectations by using AI tools to identify high-risk patients, customize care plans, and reduce hospital admissions.
In the insurance sector, AI is streamlining claims processing and detecting fraud more accurately, potentially saving 4,500 to 5,000 hours of staff time annually. While UNH is advancing in AI implementation, concerns regarding data privacy, algorithmic bias, and automation dependency are critical challenges that need addressing for responsible integration.
Despite these advancements, UNH’s shares have seen a 37.7% decline year-to-date, compared to the industry average decline of 29.5%. Currently, it trades at a forward price-to-earnings ratio of 18.44, above the industry average of 15.23, with Zacks estimating earnings of $16.21 per share for 2025, marking a potential 41.4% drop from the previous year.
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