Behold.ai Enters Administration: Digital Health Startup Faces Challenges

Key Takeaways

UK-based Behold.ai has entered administration after failing to secure contracts from the AI Diagnostic Fund.
CEO Simon Rasalingham has requested an inquiry into the fund, claiming it favored overseas companies over local firms.
Behold.ai’s technology, which aids in lung cancer detection, was not utilized despite its potential benefits for patients.

Behold.ai Faces Challenges Amidst AI Diagnostic Fund Controversy

UK digital health start-up Behold.ai is in administration following its inability to secure contracts under the government’s AI Diagnostic Fund, which was established to promote AI tools for diagnosing lung cancer. Currently, Behold.ai’s lung cancer diagnostic systems are deployed in multiple NHS organizations, including a pilot program with Somerset NHS Foundation Trust that kicked off in 2022.

Simon Rasalingham, the company’s chief executive, expressed concerns regarding the allocation of the £21 million AI Diagnostic Fund. Launched in June 2023, the fund was intended to assist in the adoption of AI technologies across 64 NHS trusts in England. Rasalingham pointed out that foreign companies such as qure.ai, with offices in the US, India, and the UK, have benefitted from this funding while Behold.ai, a British company with proven technology, did not receive any contracts.

During an interview, Rasalingham voiced his dissatisfaction, stating, “That is our taxpayers’ money being used to compete against British AI companies like Behold.” His criticisms come in light of the government’s AI Action Plan, which Prime Minister Sir Keir Starmer recently unveiled, indicating aspirations to enhance the UK’s position as a leader in AI technology.

Rasalingham’s personal connection to the situation is profound. He mentioned that his wife, Shaila, has suffered a relapse of lung cancer, a circumstance that he believes could have been mitigated if Behold.ai’s technology had been accessible at her local hospital. He lamented that timely access to the company’s innovative diagnostic tools might have reduced the risk of her cancer returning.

In a bid for accountability, Rasalingham reached out to Lord Ara Darzi, director of the Institute of Global Health Innovation, requesting an inquiry into the procurement process surrounding the AI Diagnostic Fund. In his email, he noted, “Behold.ai was the only British AI company in the field… to help speed up lung cancer diagnosis; we did not win a single contract.” He stressed the potential for a national security risk linked to data when taxpayer money is used to support overseas competitors instead of local innovations.

Lord Darzi acknowledged the contributions of Behold.ai in pioneering AI technology within the NHS. He expressed hope that the insights gained from Rasalingham’s experience could inform future efforts to reinforce the NHS and ensure the UK maintains its global leadership in healthcare technology.

Behold.ai, founded by the creators of the teleradiology company Medica, has received accolades, including the Prix Galien International award for ‘best digital health software’ in 2024. Despite this recognition, the recent developments indicate significant challenges ahead for Behold.ai as it navigates a complex landscape exacerbated by a lack of local support.

Digital Health News has reached out to both qure.ai and NHS England for further comments on this situation but did not receive responses at the publication’s deadline.

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