Health care AI revolution starts with building trust

As we discussed at a recent Fortune dinner with Partovi and a dozen leaders of major health care systems around the country, closing the gap is a multipronged challenge. Public trust in the U.S. health care system fell from 71.5% in 2020 to 40.1% in 2024, in part due to COVID, and more than a third of Americans say they’ve skipped or postponed care because of the cost. Add in concerns about discrimination, as well as how personal health data may be used, and it’s understandable why patients may not welcome AI. 

My colleague Jason Del Rey spoke about that challenge at the dinner with Partovi; Northwell Health chief medical officer Jill Kalman; and David Reich, chief clinical officer of the Mount Sinai Medical System. Kalman and Reich agreed that the first step for them was to build trust with professionals. 

“When you obsessively build AI into workflows in ways that make people’s jobs better, then you develop that trust,” Reich said. “To give an example, when we developed an algorithm that predicted severe malnutrition in the hospital, dietitians at first were a little skeptical, but they were involved in the process, and they are now three times more likely to diagnose and treat severe malnutrition than before.” 

Kalman added that there’s a generational element to trust in technology—indeed the study found one third of patients over 45 are optimistic that AI can improve health care vs. two thirds of those aged between 18 and 44—and argued that transparency is key. “You have a health system that has all of these huge reams of data,” she noted. “Who owns it? Who monetizes it? Who wants it?”

On the plus side, she says Northwell now uses AI to streamline prior authorization: “There’s no risk to the patient and the operational value is incredible.”

More news below.

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

TOP NEWS

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The markets

• The S&P 500 rose 2.1% Tuesday. The index is up 0.7% YTD. 
• S&P futures were trading down 0.2% this morning. 
• The Stoxx Europe 600 was down 0.4% in early trading. 
• Asia was flat to down: Japan was flat. Hong Kong down 0.5%. Shanghai was flat, and India’s Nifty 50 was down 0.3%.
• All eyes are on Nvidia, which reports earnings after the closing bell. It’s the last of the Magnificent Seven technology stocks to report earnings, which so far have exceeded investors’ expectations. Yesterday, Nvidia shares gained 3%. 
• Bitcoin was sitting up at $108,800 this morning.

From the analysts 

• Morningstar on Nvidia earnings: "Nvidia announced a $5.5 billion writeoff of H20 inventory for AI chips targeted for China, as subsequent U.S. restrictions have blocked Nvidia’s sale of these parts…we’ll be seeking insight into Nvidia’s revenue headwind from lost China business, as well as next steps (if any) to salvage any China business going forward," per Brian Colello.
• Convera on the Fed: "Yesterday’s comments from Fed officials Kashkari and Williams confirmed the Fed’s 'wait and see' stance, signaling no imminent rate cuts 'until there is more clarity on the path for tariffs and their impact on prices.' Clearly, protecting long-run inflation expectations remains a top priority for them. Fed officials don’t seem to be the only ones waiting: US durable goods orders dropped 6.3% in April, unwinding a 7.6% rise in March… The data reflect growing business caution as companies await clarity on trade policy and tax changes while focusing on cost control," per Antonio Ruggiero.
• UBS on Trump's tariff swings: "Equity markets seemingly rallied on optimistic comments from US President Trump around trade. So much focus on the words of one individual is unusual. Trump has the power to limit future economic damage from new trade taxes, but cannot undo the damage of past policy swings. For example, comments in yesterday’s sentiment data highlighted that companies are delaying decisions in the face of policy uncertainty, even as Trump retreated from some tariffs," per Paul Donovan

AROUND THE WATERCOOLER

Elon Musk can’t blame Tesla’s Europe crisis on a weak car market—EVs are selling in record numbers while his drop by almost half by Christiaan Hetzner

Gen Z grads don’t want tech jobs anymore—instead low-paid careers with plenty of holiday in teaching are all the rage, LinkedIn says by Orianna Rosa Royle

Beijing’s No. 2 wants companies to ‘fully share’ in China’s development as he joins ASEAN and GCC leaders in first-ever summit by Nicholas Gordon

Uber CEO says rideshare ‘freed up’ his son from having to get a driver’s license—and he’s one of many Gen Zers who aren’t willing to drive by Sasha Rogelberg

Indeed’s CEO shares the unusual question he’s been asking job candidates for 15 years: Apple or Android? by Emma Burleigh

CEO Daily is compiled and edited by Joey Abrams and Ian Mount.