Industry Growth

 Medical AI Scribes:
o Market Size: Valued at $19.27 billion in 2023, projected to grow at a 38.5%
CAGR through 2030 (GrandView Research).
o Drivers: Increasing use of AI to reduce administrative burdens and improve
operational efficiency. For instance, AI scribes help save up to 15 minutes per
patient, enabling doctors to see more patients daily.
 Veterinary AI Scribes:
o Market Size: Valued at $997.33 million in 2022, expected to grow at a 19.09%
CAGR through 2030 (GrandView Research).
o Drivers: Rising pet ownership (70% of U.S. households own a pet as of 2023) and
increased spending on pet healthcare, pushing clinics to adopt cost-saving
technologies like AI scribes.

Sources of Growth

 Medical AI Scribes:
o Adoption in healthcare systems to reduce burnout and streamline documentation
processes. Hospitals using AI scribes report up to a 25% reduction in time spent
on documentation.
o The aging population is increasing demand for healthcare services, driving wider
AI adoption.
 Veterinary AI Scribes:
o Growing caseloads in clinics due to rising pet ownership and healthcare demands.
AI scribes like Talkatoo are used to eliminate 30%-50% of documentation time.
o Smaller practices adopting AI tools to stay competitive and meet operational
demands.

Mechanisms of Growth

 Medical AI Scribes:
o Growth is driven by increased spending from existing customers to handle higher
patient volumes and new adoption by smaller clinics. For example, clinics using
AI scribes report a 10% increase in daily patient capacity.
 Veterinary AI Scribes:
o Small- to mid-sized clinics are driving growth by adopting AI scribes like
Talkatoo, which help reduce note-taking time by up to 40%.

Sub-Vertical Growth

 Medical AI Scribes:
o Rapid adoption in specialties like oncology and radiology, which require detailed
documentation.
 Veterinary AI Scribes:
 o Highest growth in companion animal clinics, where the majority of pet healthcare
spending occurs. Equine and livestock practices are also beginning to adopt AI
tools as offerings become more specialized.

Industry Lifecycle Position

 Medical AI Scribes: In a growth phase, with rapid adoption in large healthcare systems
and increasing use in smaller clinics.
 Veterinary AI Scribes: In an early growth phase, with rising awareness and adoption
among veterinary professionals.

Market Size

 Veterinary AI Scribes: Veterinarians face significant administrative burdens due to

manual documentation, reducing time for patient care and increasing burnout. AI scribes
automate note-taking, enhancing efficiency and allowing veterinarians to focus more on
clinical duties.
 Medical AI Scribes: Similarly, healthcare providers spend considerable time on
electronic health record (EHR) documentation, detracting from patient interaction. AI
scribes streamline this process, improving workflow and reducing physician fatigue.

Macro Industry and Micro Focus

 Macro Industry: AI-driven workflow solutions in healthcare, encompassing both

medical and veterinary AI scribes.
 Micro Industry Focus: Veterinary AI scribes are specialized for industry-specific
terminology and workflows, setting them apart from general medical scribe solutions.

Industry Annual Contract Value (ACV)

 Veterinary AI Scribes:
o Talkatoo: Approximately $1,140 annually per user.
Talkatoo
o Scribenote: Approximately $2,988 annually per user.
ScribeNote
o Average ACV: Approximately $3,000, considering multi-user licenses and larger
clinic contracts.
 Medical AI Scribes:
o Suki: Estimated $2,400–$3,600 annually per user.
o Nuance DAX: Enterprise-level pricing ranges from $6,000–$10,000 annually per
user.
o Average ACV: Approximately $6,000, reflecting broader adoption in large
hospital systems.

Number of Customers

 Veterinary AI Scribes:
o Total Veterinary Clinics in the U.S.: Approximately 30,000.
 o Assumptions:
 Tech-Ready Clinics: 80% (~24,000) have the capacity for technology
adoption.
 Adoption Rates: 50–70% of tech-ready clinics (12,000–21,000) are likely
to adopt AI scribes over the next five years.
 Medical AI Scribes:
o Total Healthcare Providers in the U.S.: Approximately 1 million.
o Assumptions:
 Outpatient Clinics: Focusing on ~200,000 outpatient clinics.
 EHR-Integrated Clinics: 50% (~100,000) have integrated EHR systems
and are potential adopters of AI scribes.

Market Size Estimates

 Veterinary AI Scribes:
o Market Size Calculation: ACV ($3,000) x Number of Customers (12,000–
21,000).
o Estimated Market Size: Approximately $36–$105 million annually.
 Medical AI Scribes:
o Market Size Calculation: ACV ($6,000) x Number of Customers (100,000).
o Estimated Market Size: Approximately $600 million annually.

Sensitivity and Growth Opportunities

 Veterinary AI Scribes:
o Growth Drivers: Increased pet healthcare spending and potential legislation
mandating electronic recordkeeping.
o Opportunities: Enhancing compatibility with practice management systems and
offering bundled services to increase ACV.
 Medical AI Scribes:
o Growth Drivers: EHR mandates and technological advancements integrating AI
into telemedicine.
o Opportunities: Scaling for outpatient clinics and integrating AI into broader
healthcare solutions.

Validation: Assumptions are supported by industry reports, pricing disclosures from top players,
and survey data showing AI adoption trends in veterinary and medical fields. For instance, a
study by the American Animal Hospital Association (AAHA) found that 39.2% of veterinary
professionals are familiar with AI applications, with 69.5% using AI tools daily or weekly.

Product or Service Criticality

 Veterinary AI Scribes:
o Efficiency Gains: Automating documentation can save veterinarians up to 2
hours daily, allowing them to see more patients.
Coherent Solutions
 o Revenue Increase: With additional appointments, clinics can generate extra
income, potentially increasing annual revenue by $50,000–$100,000 per
veterinarian.
 Medical AI Scribes:
o Patient Throughput: Physicians using AI scribes can see 10–15% more patients
daily, translating to significant revenue increases.
American Medical Association
o Cost Savings: Reducing reliance on human scribes or transcription services can
save practices $2,000–$4,000 per month per provider.
Docus

Impact of Service Downtime

 Veterinary AI Scribes:
o Short-Term: Manual documentation increases administrative time, reducing
patient care capacity.
o Long-Term: Extended downtime can lead to decreased revenue and potential
client dissatisfaction.
 Medical AI Scribes:
o Short-Term: Physicians spend more time on EHRs, reducing patient interaction.
o Long-Term: Sustained issues may lead to burnout and decreased patient
satisfaction.

Competitive Advantages and Industry Requirements

 Veterinary AI Scribes:
o Specialization: Tailored to veterinary workflows and terminology, offering a
competitive edge over generic solutions.
o Integration: Seamless compatibility with practice management systems enhances
utility.
 Medical AI Scribes:
o Regulatory Compliance: Adherence to HIPAA and EHR standards is essential,
creating barriers for new entrants.
o Adoption Trends: Increasing EHR mandates make AI scribes more integral to
healthcare operations.

Alternatives and Switching Costs

 Veterinary AI Scribes:
o Alternatives: Manual documentation or generic dictation tools, which may lack
veterinary-specific features.
o Switching Costs: Transitioning to a new system involves training and potential
workflow disruptions.
 Medical AI Scribes:
o Alternatives: Human scribes or in-house AI development, both of which can be
costly and resource-intensive.
 o Switching Costs: Changing systems requires staff retraining and may temporarily
reduce efficiency.

Return on Investment (ROI)

 Veterinary AI Scribes:
o Without AI: Manual documentation limits patient capacity.
o With AI: Increased efficiency allows for more appointments, potentially boosting
annual revenue by $50,000–$100,000 per veterinarian.
 Medical AI Scribes:
o Without AI: Physicians spend significant time on EHRs, limiting patient
numbers.
o With AI: Seeing 2–3 additional patients daily can increase annual revenue by
$75,000–$112,500 per provider.

Penetration

Veterinary AI Scribes:
o Total Clinics: Approximately 30,000 veterinary clinics in the U.S.
Ciro
o Tech-Ready Clinics: Assuming 80% (~24,000) are equipped for technology
adoption.
 Medical AI Scribes:
o Total Outpatient Clinics: Approximately 200,000 outpatient clinics in the U.S.
o EHR-Integrated Clinics: As of 2021, nearly 4 in 5 office-based physicians
(78%) adopted a certified EHR.
Docus

Current Penetration

 Veterinary AI Scribes:
o Currently Served: Estimated 10% adoption among tech-ready clinics (~2,400
clinics).
o Unserved: Approximately 21,600 clinics.
 Medical AI Scribes:
o Currently Served: Approximately 20% adoption among EHR-integrated clinics
(~20,000 clinics).
o Unserved: Approximately 80,000 clinics.

Projected Penetration (Five Years)

 Veterinary AI Scribes:
o Projected Adoption: Anticipated increase to 50–70% of tech-ready clinics.
o Newly Served: An additional 12,000–16,800 clinics.
o Total Served: 14,400–19,200 clinics.
 Medical AI Scribes:
o Projected Adoption: Expected to reach 50% of EHR-integrated clinics.
 o Newly Served: An additional 30,000 clinics.
o Total Served: 50,000 clinics.

Key Factors

 Veterinary AI Scribes: Efficiency demands and increasing comfort with AI tools.

 Medical AI Scribes: Regulatory mandates (EHR adoption) and burnout mitigation.

Business Model

Recurring Revenues:
o Both veterinary and medical AI scribe services typically employ subscription-
based pricing models, ensuring predictable, recurring revenue streams.
 High EBITDA Margins:
o As software-driven solutions, these services often achieve high gross margins,
commonly between 70% and 90%.
Crunchbase News
 Scalability:
o The software-centric nature allows for easy scaling, enabling the onboarding of
additional customers with minimal incremental costs.
 Asset-Light Operations:
o Relying primarily on cloud-based infrastructure, these businesses maintain low
physical asset requirements, reducing capital expenditure.

Variations Across Segments and Sub-Verticals

 Veterinary AI Scribes:
o Focus on industry-specific terminology and workflows, necessitating
customization to integrate with veterinary practice management systems.
o Serve a smaller total addressable market (TAM) due to the limited number of
veterinary clinics.
 Medical AI Scribes:
o Cater to a broader market, including outpatient clinics, hospitals, and specialty
practices.
o Face higher switching costs due to deep integration with Electronic Health Record
(EHR) systems, making it challenging for competitors to displace incumbents.

Insights from Business Model Variations

 Veterinary AI Scribes:
o Customization is crucial for adoption, requiring investment in understanding
niche needs.
o Lower pricing models increase affordability and accessibility for smaller clinics.
 Medical AI Scribes:
o Larger contracts and multi-user licenses drive higher revenue per customer.
o Regulatory requirements, such as HIPAA compliance, create natural barriers to
entry but add operational complexity.
Conclusion
Both veterinary and medical AI scribe services exhibit favorable business model characteristics
for search fund entrepreneurs, including recurring revenues, high EBITDA margins, scalability,
and asset-light operations. The veterinary segment offers niche specialization and affordability,
while the medical segment provides broader market potential and higher customer retention due
to integration complexities.
Work Cited:
 American Animal Hospital Association (AAHA) - "Veterinary Professionals Familiarity
with AI." Available at: [Link]
 American Medical Association (AMA) - "AI Scribes Save Time for Physicians." Available
at: [Link]
keyboard-every-day
 American Pet Products Association (APPA) - "70% of U.S. Households Own a Pet."
Available at: [Link]
 Coherent Solutions - "Efficiency Gains from AI Scribes." Available
at: [Link]
 Crunchbase News - "Improving Gross Profit Margins in SaaS Businesses." Available
at: [Link]
 Docus AI - "AI Medical Scribe Overview." Available at: [Link]
scribe
 GrandView Research - "Medical AI Scribes Market Size and Growth." Available
at: [Link]
market
 Health IT Dashboard (ONC) - "Adoption of Certified EHR Technology by Physicians."
Available at: [Link]
adoption-electronic-health-records
 Pet Insurance Quotes - "Best Veterinary Hospitals in the U.S." Available
at: [Link]
 Veterinary Practice News - "AI Scribes in Veterinary Clinics." Available
at: [Link]
 Whippet Notes - "Overview of Veterinary Clinics in the U.S." Available
at: [Link]
 [Link] - "How Many Veterinary Clinics in the U.S.?" Available
at: [Link]