Digital health funding has remained steady this year, with AI startups increasingly capturing a larger share of venture capital. In the first half of this year, AI-focused startups captured a majority of the digital health sector’s venture funding, with 62% of all venture capital investment in the sector going to companies that use AI to do things like automate documentation, accelerate drug discovery, improve diagnostics and boost patient engagement.

Investors are still laser-focused on AI’s ability to solve healthcare’s problems — but they are ramping up their scrutiny of AI companies as new startups continue to crowd the space, said Vig Chandramouli, partner at Oak HC/FT .

Customers are also remaining enthusiastic about AI — though this is more true for providers than it is for

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