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The a16z Show

Deploying AI in Healthcare

The a16z Show

a16z

Entrepreneurship, Culture, Disruption, Innovation, Science, Software Eating The World, Business, Technology

4.21.2K Ratings

🗓️ 4 March 2026

⏱️ 49 minutes

🧾️ Download transcript

Summary

a16z general partner Julie Yoo talks with Nikhil Buduma, CEO and cofounder of Ambience Healthcare, to discuss how AI is transforming clinical workflows. They cover the early days of deep learning, why Ambience started by running a medical practice before building a platform company, and what it takes to achieve high clinician adoption rates at major academic medical centers. They also dig into the challenge of building products when AI capabilities change every few months, the real ROI that's finally converting CFOs, and why this might be the moment to reimagine the legacy EHR stack.

Transcript

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0:00.0

We live in a world where the demand for healthcare is just rising so quickly.

0:04.0

We have 10,000 people aging into Medicare every single day.

0:08.1

And we just can't train doctors fast enough to take care of all these people.

0:13.5

The practice surface area for the clinician will look fundamentally different in the next three to five years.

0:20.2

When I was deploying my own software back in the day, doctors would grow and they'd be like, oh, you had another tool? Like, why are you stuffing this down my throat? The delta between the magic of the tools that they're experiencing in their consumer lives and what they do in their work has for the first time narrowed, just even a little bit, to a point where it's just fundamentally changed the nature of how they view technology. I think this is the first time where there, just even a little bit to a point where it's just fundamentally changed

0:38.2

the nature of how they view technology. I think this is the first time where there's hope.

0:41.4

There is a pathway to doing more with less. There is a pathway for the job of being a clinician,

0:46.3

being a nurse, to be fulfilling one. There is a pathway for the experience of a patient,

0:51.5

not being as confusing and full of despair as sometimes it is.

0:56.5

When Nikiel Budama was a PhD student at Stanford, he lost a mentor to a medical error.

1:02.0

Instead of finishing his MD PhD, he dropped out to work on fixing health care with technology.

1:07.4

He spent years in the early deep learning community, including time with the researchers who would go on to found Open AI.

1:13.7

He watched Transformers emerge in 2017 and saw the scaling laws start to click.

1:18.4

Then he did something unusual.

1:20.4

He and his co-founders started a medical practice, not to deliver care forever, but to understand what it actually feels like to run one,

1:26.7

to work with doctors,

1:27.9

implement an EHR, and see where technology falls short. That experience became the foundation

1:33.0

for Ambience. Today, the company works with some of the largest academic medical centers in the

1:37.5

country. Over 75% of clinicians use the product daily, and one health system is projecting

1:42.9

$30 million in that new margin from the

1:45.2

platform. A16Z general partner Julie Yu talks with Nikiel Budema, CEO and co-founder of Ambience

1:51.4

Healthcare. Super excited to have you here, Nikiel Baduma, who is the CEO of Ambience, one of

...

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