The news: A Microsoft AI pilot study showed a fourfold improvement in diagnostics compared with a panel of real doctors, but researchers acknowledged the continued need for human expertise.

Digging into the data: Microsoft created an agentic AI emulation of a panel of expert physicians that studied 304 complex cases from the New England Journal of Medicine.

• The AI panel correctly solved 85% of the NEJM cases, compared with an average of  20% solved by a panel of 21 physicians from the US and UK.
• Microsoft’s pilot used its own emulation system—Microsoft AI Diagnostic Orchestrator—along with existing AI including OpenAI, Meta, Anthropic, Grok, and Gemini.
• The experiment cut costs by 20% by recommending fewer expensive tests and procedures.

Yes, but: The US and UK physicians on the panel were not allowed to use common clinical practices such as consulting with other doctors, textbooks, or even generative AI tools in their diagnoses.

While Microsoft says the study shows a pathway to “medical superintelligence,” its vision for AI in healthcare combines human expertise and empathy with machine intelligence.

Why it matters: Studies show AI is better at diagnosing diseases, catching mistakes, and can even be more empathetic than human doctors, but consumers are still wary of AI-assisted healthcare.

• A majority (55%) of patients are uncomfortable with physicians using AI to diagnose or create treatment plans, per a ModMed survey in December.
• Many patients agree AI is acceptable for assisting with physician refills (42%), appointment scheduling (35%), and office visit check-ins (31%).
• 57% of respondents prefer AI for documentation tasks if it means more face time with their doctor.

The takeaway: It’s evident AI is not a replacement for doctors, but it is a tool they should start adopting. There’s a window of opportunity for doctors and healthcare systems to grab a first-mover advantage by presenting AI as a co-pilot and a value-add that leads to more accurate diagnoses and more time spent with patients.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Not a subscriber? Click here to get a demo of our full platform and coverage.