AI Care Evolution: Part 1 — 3 Game-Changing Trends Rewiring the Care Industry
AI is transforming the care industry by addressing workforce shortages with advanced, frontline applications. (Source: Fotor AI)
Artificial Intelligence (AI) is revolutionizing virtually every sector, and the care industry is no exception. From healthcare to elder care, AI-driven technologies are accelerating rapid transformation toward more precise, personalized, and automated service models.
The convergence of generative AI and the Internet of Things (IoT) plays a crucial role across health monitoring, care decision-making, and operational management. Yet, realizing the full potential of these innovations requires overcoming challenges related to data governance, technology integration, workforce training, and viable business models.
This article series—titled "AI Care Evolution"—offers a comprehensive look at this wave of change. Beyond a technological overview, it provides a strategic lens on the care industry’s competitiveness and survival tactics. Drawing from policy analysis, expert foresight, and real-world innovations, the series aims to paint a detailed blueprint of AI’s role in reshaping elder care for industry stakeholders.
The AI-Driven Shift in Care: 3 Major Trends Reshaping the Industry
As global AI technology advances at an unprecedented pace, it is not only driving improvements in content generation, speech recognition, and image analysis but also embedding domain expertise and reasoning into service delivery. In labour-intensive care fields facing critical manpower shortages, AI has emerged as one of the frontline applications of this technological evolution.
National AI Policies Driving Smart Healthcare and Care Services
Governments globally are launching major AI initiatives to accelerate industry transformation. Taiwan’s AI Action Plan 2.0 (2023–2026), led by the National Science and Technology Council, focuses on smart healthcare, long-term care, and preventive health to drive AI-centered industrial upgrades.
The government’s vision to build an "Artificial Intelligence Island" fuels digital transformation in southern Taiwan, especially through the Greater Southern Silicon Valley Initiative. These projects promote innovation in care institutions, communities, clinics, and hospitals, aiming to cut costs and increase revenue for telecom and IT sectors.
Key efforts include digital twins, safety monitoring, social companionship, and rehabilitation support. Subsidies of up to 5 million NTD per project encourage collaboration among industry, government, and academia to deploy practical AI solutions and develop local talent.
AI Redefining Care Models
AI’s role is not to replace caregivers but to transform workflows and care models. According to an AI research director at Fu Jen Catholic University, the future of care lies in the synergy between AI and human intelligence—AI handles initial assessments, while humans manage complex decisions.
Some care providers have started adopting AI, but significant challenges and opportunities remain. The article highlights three AI-driven trends shaping the future of care.
Trend 1: Expanding AI’s Technological Boundaries in Care
An AI and data expert from Taipei Medical University points out that the current AI surge is powered by the interplay of algorithms, big data, and computing power, driving device innovation and practical applications.
In elder care—a complex, labor-intensive environment—AI is evolving beyond simple task automation. According to a gerontechnology researcher from Yuan Ze University, AI today divides into two categories: functional AI performing single tasks, and AI agents capable of learning, reasoning, perceiving, and decision-making akin to human behavior.
Currently, AI supports management tasks such as scheduling and transportation logistics, with early-stage interaction applications focusing on fall detection and behavior recognition. The rise of generative AI marks a turning point, enabling conversational bots that remember user preferences and interpret health data to improve family understanding of elder conditions.
A tech CEO envisions AI agents integrating sensors and backend data to autonomously respond to elder signals, even triggering emergency calls. These agents promise reliability under pressure and could be realized within three to five years.
Trend 2: Intelligent Care Processes and Service Models
AI is gradually reshaping care service logic and workflows. An AI center director notes that AI will become a companion for elders managing chronic conditions, providing timely, scientific support as physical functions decline.
Generative AI combined with AIoT has spawned applications like automatic care record generation, voice reminders, health advice, customer service analytics, and training support. These technologies advance six key areas: administrative efficiency, personalized care, risk prediction, remote monitoring, enhanced human-machine interaction, and emotional companionship.
Care management software is already maturing—AI tools can consolidate data, generate handover notes, and alert caregivers to risks. New solutions translate clinical terminology into language family members can understand, improving team communication.
Remote monitoring and early warnings are advancing through wearable devices and sensors, crucial for rural or home-based care decentralization. AI's predictive capabilities boost caregiver intervention efficiency and enable tailored care plans based on individual health and lifestyle data. Looking ahead, emotionally intelligent AI might support mental health by creating personalized life storybooks or providing psychological comfort.
Voice-based notification systems are also helping elders with medication and health checks, while analyzing call center recordings to detect issues early.
Trend 3: Industry Players Reshaping the Care Tech Market
Historically considered costly with uncertain returns, care has not been the prime focus for tech companies. However, as generative AI and large language models mature and development barriers fall, the care market is becoming an AI hotspot.
An industry leader contrasts care AI’s flexibility with the heavily regulated medical AI space, noting its growing adoption for health monitoring, preventive care, and administrative automation. This shift fosters cross-sector collaboration, integrating algorithms, data platforms, and sensing devices into a comprehensive ecosystem.
To control costs and enhance usability, companies are adopting task-focused AI models, such as automated care record generation and shift report consolidation. Retrieval-augmented generation (RAG) technology plays a key role by combining database queries with AI generation to improve accuracy.
A startup CEO shares their development of a “nursing companion” system that supports caregivers in emergency procedures with real-time guidance. He emphasizes the importance of fine-tuning AI models with clinical data and the need for collaborative efforts between IT and clinical teams to gain a competitive edge.
Emerging AI applications challenge traditional software business models, with token-based pricing raising costs for smaller institutions. The industry’s future success depends on balancing practicality, cost, and accountability.
Looking Ahead: A Four-Part Series on AI and the Future of Care
This article marks Part 1 of the AI Care Evolution series by Anke Media Corporation. Over the coming weeks, we will extend our analysis from multiple perspectives, exploring policy frameworks, technological breakthroughs, business innovations, and the human dimension of AI-powered care.
Stay tuned for deeper insights into how AI will continue to transform the care landscape, offering new opportunities and raising important questions for the future.
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