Why UnitedHealth Group Could Be a Surprising AI Winner in Healthcare

This Dirt Cheap Healthcare Stock Could Be a Hidden Artificial Intelligence (AI) Opportunity (Hint: It's Not Eli Lilly)

Key Points

• AI has significant potential in healthcare, especially in drug discovery and insurance industries.
• UnitedHealth Group faced operational challenges in 2025 but could benefit from AI to improve forecasting and cost management.
• Despite recent setbacks, UnitedHealth's stock is near a five-year low and may offer long-term value as AI integration progresses.

AI's Growing Role in Healthcare and Insurance

Pharmaceutical companies have been in the spotlight for leveraging AI to speed up drug discovery and clinical trials. Investors have recently focused on companies like Eli Lilly and Novo Nordisk because of their blockbuster weight management drugs such as Mounjaro and Ozempic. However, both companies are also investing in AI to expand their growth beyond these treatments.

According to PwC, the total addressable market for AI in healthcare could reach $868 billion by 2030. While drug development is a major area, insurance is another sector poised for transformation through AI technologies like scenario modeling, predictive analytics, and natural language processing (NLP).

UnitedHealth Group’s 2025 Challenges

UnitedHealth Group (NYSE: UNH) encountered a rough patch in 2025. In April, the company lowered its earnings guidance due to higher-than-expected utilization rates in its Medicare Advantage program and reduced reimbursements in its pharmacy benefits management division, Optum Health. These factors compressed profit margins and rattled investors, causing the stock to fall by 40%—making it the worst performer in the Dow Jones Industrial Average this year.

Despite the setbacks, the core business remains intact. The issues largely stem from forecasting errors related to shifts in the broader economic environment rather than operational failures.

How AI Could Improve UnitedHealth’s Operations

The key problem UnitedHealth faces is predicting costs and utilization more accurately. AI, particularly machine learning, can analyze vast amounts of claims data alongside electronic health records (EHR) to generate more precise utilization forecasts. This could help the company optimize pricing strategies and better anticipate cost spikes.

AI-powered predictive models can also refine patient risk assessments by analyzing detailed data segments. This is especially valuable for the Optum segment, where improved risk profiling could enhance reimbursement predictions. Additionally, NLP can simulate how regulatory changes might impact the business, aiding strategic planning during periods of political uncertainty. Companies like FiscalNote specialize in this kind of AI-driven scenario modeling.

Is UnitedHealth Group Stock Worth Considering Now?

UnitedHealth’s shares currently trade at a slight premium compared to other large insurers based on forward earnings multiples, but the price remains near a five-year low. Management expects to correct course in the second half of 2025 and position the company better for 2026.

Whether AI will become a central part of UnitedHealth’s service model remains to be seen. However, investors with a long-term outlook might find value in holding shares, given the potential for AI to enhance forecasting, risk assessment, and strategic decision-making.

For professionals interested in how AI can intersect with healthcare and insurance, exploring relevant educational resources can be valuable. Comprehensive courses on AI applications in these fields are available at Complete AI Training.