AI AI Economics for Pharmacists By Harry Travis, BS Pharm, MBA, President, T e Travis Group T


he rapid development of artifi cial intelligence (AI) in healthcare has sparked signifi cant interest and investment, surpassing previous groundbreaking technological initiatives such as the Human Genome Project and


the Manhattan Project. While the Human Genome Project ending


in 2003 cost approximately $3 billion over 13 years, and the Manhattan Project around $23 billion in today’s dollars, private investment in AI reached a staggering $92 billion globally in 2022 alone.(1, 2, 3) T is massive infl ux of capital is


concentrated among a small number of tech giants known as “frontier developers” and “hyperscalers,” who are shaping the future of all AI applications including in healthcare and pharmacy. A small group of tech giants, known as


“frontier developers,” dominate AI soſt ware or “AI model development”. T ese are the developers of LLMs or Large Language Models such as ChatGPT or Microsoſt ’s CoPilot. T ey include Google, Microsoſt , Amazon, Meta, Anthropic and OpenAI, who have raised hundreds of millions of dollars in capital and have access to the enormous computing power, proprietary datasets, and top AI talent needed to develop and train these advanced AI models. T e frontier developers depend on the


“hyperscalers” to operate massive, global networks of data centers and provide cloud computing services at an enormous scale.


T e major hyperscalers include: 1. Amazon Web Services (AWS) 2. Microsoſt Azure 3. Google Cloud Platform (GCP) 4. Meta 5. Oracle Cloud 6. X.ai


T e big four hyperscalers (Amazon, Meta


Platforms, Microsoſt , and Alphabet) are expected to spend $200 billion on capital expenditures in 2024, an increase of more than 35% year-over-year.(4)


Elon Musk’s X.ai


is opening what he claims to be the worlds fastest supercomputer in Memphis, TN.(5)


is online and already making headlines.(6) T is concentrated landscape means that


most AI tools pharmacists encounter will likely be built on technology developed by these large tech companies, even if re-packaged and sold by healthcare or pharmacy-specifi c vendors. Pharmacists should be aware of


the broader implications of AI’s rapid advancement in healthcare. T e concentration of power among a few tech giants raises concerns about data privacy, algorithmic transparency, equitable access and safety.(7)


T e race to be fi rst in a highly


competitive market has led to concerns about the lack of regulatory oversight of this emerging technology. As a result, T e California State Assembly


has passed Senate Bill 1047, known as the Safe and Secure Innovation for Frontier Artifi cial Intelligence Models Act. It aims to regulate the developers of large-scale AI models.


Some of its key provisions include: • Applies to only frontier models costing


over $100 million to train and using signifi cant computing power, and only models that have been fi ne-tuned at a cost of at least $10 million • Requires developers to implement safety


protocols and an “emergency stop” capability • An accreditation process for third-party


auditors to certify developers’ compliance with safety requirements • Whistleblower protection


>>


”Pharmacists must be vigilant in evaluating AI tools for potential biases and ensuring they align with ethical standards of patient care and data protection.”


It


IN Pharmacy


Harry is the president of T e Travis Group. He is a nationally known speaker on the topic of the disruptive impact of digital technologies on pharmacy. He has held senior leadership positions


with Baxter Healthcare, Cardinal Health, Accredo/ Medco, Aetna, and CVS Caremark. Mr. Travis holds a BS in Pharmacy from the University of


Pittsburgh, School of Pharmacy and an MBA from T e Darden School at the University of Virginia.


THE LEA THE LEADING VOICE FOR T R THE MISSOURI PHARMACIST | MoRx.com 13


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