Blog September 23, 2025

The AI Hype Cycle: Is the Healthcare Supply Chain Buying Snake Oil?

Separating Hype from Reality in Healthcare’s AI Revolution

By: Jeremy Rotenberg

Updated: September 23, 2025 | 3 Minute Read

C-level executives in the healthcare sector are increasingly looking to artificial intelligence as a silver bullet for everything from efficiency and growth to risk management in the supply chain. You’ll hear grand statements about using “AI-powered technologies that can anticipate supply chain disruptions” to ensure effective patient care. On the surface, this sounds revolutionary. But beneath the buzzwords lies a dangerous trend: the AI hype cycle.

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When Simple Solutions Are Better Than “Smart” Ones

While some AI applications are genuinely transformative, many claims being made for its use in the healthcare supply chain are, frankly, ridiculous. One talking point is using AI to “guarantee the cold chain for sensitive drugs”. This is a solution in search of a problem. We already have a reliable, low-cost technology for that: it’s called a thermostat. Suggesting a multi-million dollar AI investment to do the job of a simple sensor is a perfect example of expensive hype.

The High Cost of Impractical Promises

This disconnect between promise and reality is why some researchers have found that a staggering percentage of corporate AI investments end in failure. Companies are being sold complex, costly systems to solve problems that don’t require them, all under the powerful allure of the “AI” label. A stockout in retail is a lost sale, but in healthcare, it can be a critical patient event, making the stakes for effective technology much higher.

The true value of AI in healthcare will come from focused, practical applications. Not from flashy promises to reinvent processes that already work. The industry needs to apply critical thinking and ask a simple question before signing any checks: Is this a genuine leap forward, or am I just buying the world’s most expensive thermostat?

The consultants at LIDD work with organizations across the supply chain to build more efficient, sustainable, and resilient operations. If you’re looking to turn your business into a powerhouse of operational excellence, reach out to LIDD today.

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