AI Takes Center Stage at UNH: Will It Fix Administrative Waste?

For UnitedHealth Group UNH, artificial intelligence (AI) has evolved from a concept to a crucial part of its strategy. The healthcare industry’s heavy administrative tasks, like handling claims manually, data fragmentation and complex billing processes, have squeezed profit margins for a long time. AI offers a pathway to streamline these processes, to boost efficiency and reduce costs, while maintaining the quality of care.UNH is harnessing the power of AI to streamline various processes like claims handling, prior authorizations, fraud detection and customer support. These tasks often involve a lot of repetitive, rule-based work that leads to delays and errors. By automating decision-making and data checks, AI can help speed up processing times, boost accuracy and reduce friction among providers, payers and patients.From a strategic standpoint, UNH’s scale gives it an advantage. Having access to extensive datasets from insurance, pharmacy and care delivery opens opportunities to develop more effective models and standardize processes at scale. However, AI adoption is not without challenges. Regulatory scrutiny around data privacy, algorithmic bias and transparency is intensifying, particularly in healthcare. UNH must balance innovation with compliance, ensuring AI tools support informed decision-making while maintaining the trust of regulators, providers and members.AI is not going to eliminate administrative waste at UNH overnight. Its effectiveness will depend on how thoughtfully it is integrated into existing workflows and governed over time. If deployed with clear oversight, strong data discipline, and measurable efficiency goals, AI could gradually ease operational hurdles and boost the company’s capacity to handle the growing complexities of the healthcare landscape.How Are Competitors Faring?Some of UNH’s major competitors in the AI-enabled healthcare solutions are Elevance Health, Inc. ELV and Humana Inc. HUM.Elevance Health’s AI tool speeds up the prior authorization process by aligning necessary documentation with medical policies, helping patients receive faster approvals. ELV’s system undergoes thorough evaluations to check for bias and performance. At the same time, Humana is embracing AI to reduce administrative hurdles and enhance care coordination. By automating processes like claims, risk scoring and workflow decisions, HUM is focused on boosting efficiency while ensuring that care delivery remains seamless.UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have declined 35.8% in the past year compared with the industry’s fall of 29.6%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.63, above the industry average of 15.48. UNH carries a Value Score of A.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $16.30 per share, implying a 41.1% drop from the year-ago period.Image Source: Zacks Investment ResearchThe stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Humana Inc. (HUM): Free Stock Analysis Report Elevance Health, Inc. (ELV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks