SaaS in Healthcare: Rise, Paradigm Shift or Fall?

Since the end of 2024, when a video of Satya Nadella, CEO of Microsoft, went viral on LinkedIn, a buzz has emerged: are we witnessing the beginning of the end of SaaS (Software as a Service)?

In the recording, Nadella shared his visions for the future of various fields, one of which was the SaaS segment. He emphasized that we will see a radical transformation due to the rise of Artificial Intelligence and the advent of "AI Agents," tools capable of automating complex tasks.

According to the Microsoft CEO, the software of the future, with integrated generative artificial intelligence, will enable the direct integration of data stored across different platforms, such as databases and systems.

In this context, generative AI emerges as an important complement to these technologies, as it will not only be able to collect data but also properly structure it so that it can be filtered, analyzed, and integrated with other information within the same ecosystem.

Additionally, the "AI Agent" capability would help simplify software usability, reducing steps and screens – a common feature in many applications.

But, after all, what does the healthcare sector have to do with this?

What is SaaS and How is it Used in Healthcare

The term SaaS stands for “Software as a Service” and refers to cloud-based platforms and applications. These technologies emerged as an alternative to traditional on-premise software, which required installation, maintenance, and dedicated infrastructure.

Currently, software-as-a-service solutions are mainly sought after by medium and large companies, as they provide a way to scale business operations at a reduced cost – especially when compared to the expenses associated with traditional infrastructure.

One of the main advantages of SaaS is its ability to enable data interoperability among various entities within the same ecosystem – such as automatically sending lab results to a clinic. Some examples of SaaS applications in healthcare include:

• Conexa Saúde – A platform for teleconsultations;
• Nuria – A system interoperability platform focused on patient engagement;
• Closecare – Document management software;
• Track.co – Customer experience management software;
• Welbe – An interoperability solution with a focus on occupational health.

As demonstrated by each of these companies, SaaS can offer a variety of solutions. For instance, it includes telemedicine platforms – enabling medical consultations even in remote regions – as well as simplifying appointment scheduling and delivering test results through mobile apps.

When compared to AI-based technologies, traditional SaaS solutions have another advantage: more advanced security rules and protocols, largely due to the LGPD (General Data Protection Law) that came into effect in Brazil in 2020.

However, it's important to note that we're discussing the use of software at a corporate level. This means that when applied within a company, it must comply with regulations such as LGPD (Brazilian law), HIPAA (U.S. legislation), and GDPR (European legislation).

The Role of Generative AI in Healthcare

The emergence of generative artificial intelligence is impacting multiple fronts and introducing new terminology into our daily lives: AI Agents and AI Co-pilots.

AI Agents are models trained to perform tasks autonomously, requiring minimal human supervision. In healthcare, this technology is being used to enhance patient interactions, streamline appointment scheduling, provide guidance, and assist with monitoring.

However, concerns about these agents are closely linked to safety. After all, who can guarantee that the AI won't hallucinate and provide dangerous health advice to a patient?

On the other side of the spectrum, there are AI Assistants, also known as AI Co-pilots. Their purpose is to augment human capability, not to perform tasks independently. Instead, they provide insights and increase efficiency in processes.

According to a 2024 survey by the Regional Center for Studies on the Development of the Information Society (CETIC), 17% of doctors and 16% of nurses in Brazil already use generative artificial intelligence in their work.

Although the number of users is still relatively low, a survey by Medscape – conducted with professionals from Brazil, Argentina, and Mexico – reveals that 79% of doctors in Latin America see artificial intelligence as an ally in the sector, despite some lingering concerns.

While generative AI offers exciting new possibilities, it also presents significant risks. For example:

• Hallucinations – Generative AI can produce convincing but incorrect or inaccurate responses, potentially leading to misdiagnoses or inappropriate clinical decisions, such as suggesting treatments that are scientifically unvalidated or even contraindicated for a patient.
• Breach of Medical Confidentiality – Chatbot platforms often store user information. Therefore, generative AI could lead to data leaks and manipulation of sensitive patient information. The memory of provided data could also contribute to AI hallucinations.
• Regulatory Challenges and Legal Responsibility – In Brazil, there is currently no clear regulation on who would be held accountable when AI makes a mistake. If a patient suffers harm due to incorrect advice from AI, who would be responsible? Would it be the developer, the hospital, or the doctor?

The SaaS Market and the Healthcare Sector

According to the "State of Health Tech 2024" report by American investment firm Bessemer Venture Partners, cloud software companies are among the most heavily invested business models in the past year. SaaS platforms and apps have been utilized by payers, providers, and even in research and development.

A report from Fortune Business Insights indicates that the SaaS market was valued at $266 billion in 2024. This figure is expected to reach $315 billion this year, with an annual growth rate (CAGR) of 20%, potentially exceeding $1 trillion by 2032.

Within this context, it is estimated that the healthcare sector accounts for 15% to 18% of the global SaaS market share. Driven by accelerated adoption during the COVID-19 pandemic, the healthcare sector is expected to exhibit a higher CAGR compared to other industries in the coming years.

Considering the technological transformations driven by the rise of generative AI and related advancements, we may be on the brink of a new era in the SaaS landscape.

The New SaaS and a Vision for the Healthcare Sector

The integration of AI Agents and AI Co-pilots into software solutions can address at least two significant challenges in the healthcare system: digital literacy for professionals and patients, and interoperability.

With a simple interface, digital tools become more accessible to professionals and patients who are less familiar with technology. Additionally, enhanced integration between different platforms can help reduce data fragmentation.

Also known as “data silos,” this term refers to information sets within a company that are isolated from others. This isolation can occur for various reasons, such as data being managed by a specific department that is reluctant to share it or due to data being stored on a platform that lacks integration with other systems.

As a result of this fragmentation, many businesses face challenges in accessing relevant information or end up with incomplete records. Ultimately, this can lead to lost opportunities, poor data management, and damage to the company's reputation.

Returning to Satya Nadella's vision, the advent of AI is not expected to end SaaS but rather to reinvent it. The well-known acronym might take on a new meaning, shifting from "Software as a Service" to "Service as a Software", offering a wider range of services.

However, for now, this is more of a possibility than a confirmed reality. It may take some time for AI technologies to reach their full potential and for companies to effectively integrate these resources into their software solutions.