Teladoc's (NYSE:TDOC) stock traded higher after it announced an expanded collaboration with artificial intelligence powerhouse Microsoft (NASDAQ:MSFT) aimed at addressing the healthcare workforce crisis. The companies plan to use AI to help minimize the administrative burden by automating clinical documentation during virtual and in-patient care.
The agreement involves integrating Microsoft Azure OpenAI Service, Azure Cognitive Services, and the Nuance Dragon Ambient eXperience into the Teladoc Health Solo platform.
Commenting on the deal, Dr. Vidya Raman-Tangella, chief medical officer at Teladoc Health, said, “Administrative burden and staff shortages are major reasons why clinicians are leaving the profession. We are focused on using AI to reassert and build the doctor-patient relationship at a time when technology frequently does the opposite.”
“Teladoc Health’s integration of Azure OpenAI Service and Nuance DAX gives clinicians the tools they need to deliver quality, coordinated care, easing administrative burdens and allowing them to spend more focused time with their patients,” said Tom McGuinness, Corporate Vice President, Global Health & Life Sciences, Microsoft.
Shares of Teladoc climbed over 6% following the announcement. Microsoft shares were little changed.