<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>AI-powered drug discovery and development is now a possibility. </li><li>Artificial intelligence is also able to help caregivers navigate a complex collection of ever-changing treatment options.</li><li>10 stocks we like better than Recursion Pharmaceuticals ›</li></ul>While the advent of artificial intelligence (AI) has obviously changed the world, not every utilization of AI has necessarily made the world a better place. Indeed, a recent survey from PwC indicates that 56% of CEOs aren't yet seeing any significant benefit to their AI investments.If there's one area where artificial intelligence could make a meaningful difference for the better, though, it's arguably the healthcare arena, where everything seems to be complicated. Here's a closer look at two healthcare stocks uniquely using the power of AI to grow their businesses, and reward shareholders as a result.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDY1My9iaW90ZWNobm9sb2d5LWxhYi1jb21wdXRlci5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDY1My9iaW90ZWNobm9sb2d5LWxhYi1jb21wdXRlci5qcGcmdz03MDA"/>Image source: Getty Images. <h2>Recursion Pharmaceuticals</h2>Do you know how much it costs to bring a single drug to the market? The U.S. Department of Health and Human Services puts the average figure at nearly $900 million, although some equally credible estimates suggest the number can reach $2 billion, if not more. Worse, an estimate from the National Institutes of Health says that 9 out of 10 drugs that begin clinical trials ultimately don't win approval. Never mind the years required to do all of these preclinical and clinical trials.But what if there was a way to virtually do much of this research and development (R&amp;D) work in a matter of hours, at a fraction of the usual cost? That's what Recursion Pharmaceuticals (NASDAQ: RXRX) is offering customers.It's not a substitute for clinical trials, to be clear. However, leaning on more than 50 petabytes (52.4 million gigabytes) of chemical and biological data, Recursion's AI-powered platform provides drug developers with a very good idea of how a drug might perform in the real world. This allows pharmaceutical companies to focus on their most promising prospects, and not waste resources on work that's unlikely to pay off.And this isn't just theory. In addition to using its technology to pretest its own drugs, Recursion is partnering with more conventional pharma names like Sanofi and Roche Holding to develop the prospects of these third-party players.It's still pretty early on for its business. Most of its operating revenue so far is coming from its partner drugmakers paying to virtually test their R&amp;D ideas. Last year was a pivotal one for the company, though, with developmental milestone payments starting to flow in earnest. Another big swell of revenue is expected next fiscal year after modest top-line growth this year. Recursion Pharmaceuticals is very much entering the AI-powered drug development market that Global Market Insights expects to grow at an average of 30% per year through 2035.<h2>Tempus AI</h2>The other AI healthcare stock to consider buying sooner than later is more of a technology name than a healthcare one, but it's a great opportunity all the same. That's Tempus AI (NASDAQ: TEM).Simply put, Tempus empowers caregivers. Its user interface looks and acts like an ordinary web portal, but it actually helps healthcare providers &#34;make near real-time, data-driven decisions to deliver personalized patient care,&#34; including the &#34;discovery, development, and delivery of optimal therapeutics.&#34; And no, there's nothing else out there quite like it.It's not the premise that makes this stock such a compelling prospect, however. It's that it's already up, running, and off to the races. Tempus' paying customers clearly like what they're getting: The company's fourth-quarter revenue of $367 million was up 83% year over year, pushing it ever closer to a breakeven that's expected to materialize no later than the year after next.This might convince you to take a swing on Tempus: Analysts' current consensus target of $77.93 is 70% above the stock's present price.<h2>Should you buy stock in Recursion Pharmaceuticals right now?</h2> Before you buy stock in Recursion Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Recursion Pharmaceuticals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,861!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,026,987!* Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 179% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 31, 2026. James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Roche Holding AG. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

The article discusses two AI healthcare stocks to consider: Recursion Pharmaceuticals and Tempus AI. Recursion utilizes AI to streamline drug development, potentially reducing costs and time for pharmaceutical companies. It has partnerships with major firms and is expected to see revenue growth. Tempus AI focuses on empowering healthcare providers with data-driven decision-making tools, showing significant revenue growth and nearing breakeven. Analysts predict a substantial price increase for Tempus AI's stock. Both companies represent promising investments in the AI healthcare sector.

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