London-based Babylon Health, once a prominent player in digital health, collapsed in 2023 following unsuccessful rescue attempts and significant financial losses. The company, which went public in 2021 with a valuation of $4.2 billion, closed its U.S. operations and liquidated assets through insolvency, leaving common shareholders with minimal recovery.
Before Babylon's downfall, Chief Technology Officer Steve Davis departed to join Procore Technologies, a U.S. construction software firm, where he now leads as president of product and technology, reported The Street.
At Babylon, Davis was instrumental in promoting AI-powered healthcare tools despite the company reporting a net loss of $221 million on $1 billion revenue in 2022. Now at Procore, Davis is spearheading the launch of "AI-powered Agents," tools designed to improve efficiency and decision-making in construction projects. This approach raises questions about whether lessons from Babylon's collapse are being applied as AI claims expand into other sectors.
Babylon faced credibility issues before its financial troubles. In 2021, the UK medical device regulator reviewed the company's symptom checker app after clinicians raised concerns. That year, biomedical researchers criticized a Babylon-sponsored study in The Lancet for lacking convincing evidence that its diagnostic system could match doctors' performance in real-world conditions.
"Babylon's study does not offer convincing evidence that its Babylon Diagnostic and Triage System can perform better than doctors in any realistic situation,” said researchers, according to The Street.
Dr. David Watkins from the UK's National Health Service repeatedly questioned Babylon’s claims, cautioning that the firm might be overstating its AI reliability without adequate clinical validation.
Following Davis’s exit, Watkins remarked to a news outlet: "Babylon knowingly released a dangerously flawed medical device and put the public at risk of harm,” He compared Babylon Health's challenges to those faced by Theranos.
The collapse of Babylon Health highlights broader concerns about bold AI narratives capturing attention without sufficient evidence backing them up. Analysts emphasize that companies must support AI claims with independent validation and transparent reporting. Executives like Steve Davis may transition between industries, but their past actions remain relevant. For customers and investors assessing new AI platforms, Babylon’s failure serves as a reminder that trust relies on proof rather than promises.
