Chinese startups using artificial intelligence to help doctors diagnose cancer are fighting for survival due to tougher government regulations and tighter funding, said the Financial Times.
Last August, Chinese authorities introduced regulations requiring companies with AI products that make diagnoses from CT scans to apply for medical device licenses, which can take more than a year to obtain. Eight companies have applied but none have received a license to date.
Dozens of companies that use machine learning and image recognition for medical diagnoses in China raised $142 million in venture capital and private equity funding in 2017 and 2018, according to KPMG. But most of the companies have yet to generate profits.
The increase in time and money it now takes for companies to get their licenses will greatly impact their ability to get the products on the market, said Zhong Xin, chief executive of the medical software company 12 Sigma.