CVS Stock Slips Despite New Google Deal to Create AI Health Buddy

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Shares in CVS Health CVS -1.43% ▼ were off-color today despite forming a strategic partnership with Alphabet’s GOOGL -0.83% ▼ Google Cloud to give people the ‘holy grail’ of having an AI health buddy.

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AI Health Partner

CVS said the AI-enabled platform, managed by a new health tech subsidiary called Health100, will deliver an integrated care service for consumers, regardless of which pharmacy, care provider, medical insurance company, pharmacy benefits manager and digital health solution providers they use.

It will be launched sometime this year.

“The Health100 will use built-in agentic AI to provide consumers an always-on personal health ​care partner. ​It will connect benefit ​managers, pharmacies, providers, and digital ‌health systems into a single consumer-centric platform, “ said Tony Ambrozie, chief digital, technology and information officer at CVS. “The platform will offer faster care options and ways to reduce out-of-pocket spending. The mobile app will be ‌AI-driven through visual and voice interactions.

Consumer at the Center

​Health100 will be supported by Google ​Cloud’s enterprise-ready platform and ​AI technologies, including Gemini models, Cloud Healthcare API, ‌and BigQuery.

“Consumer engagement in their own health and care is the holy grail that will drive trust and much better health outcomes,” said Tilak Mandadi, Executive Vice President, Ventures and Chief Experience and Technology Officer at CVS Health. “We are putting the consumer at the center to enable their health care partners to seamlessly connect with them as part of a fully integrated experience. Google Cloud and AI technologies are core to this platform, which is grounded in responsible AI principles.”

“With Health100, CVS Health is delivering the future of agentic, AI-powered health care that enhances human touch and eliminates complexity,” added Thomas Kurian, CEO, Google Cloud.

CVS already uses AI such as conversational tools to handle customer inquiries, and ambient AI tools to assist clinicians with documentation.

Is CVS a Good Stock to Buy Now?

On TipRanks, CVS has a Strong Buy consensus based on 17 Buy and 2 Hold ratings. Its highest price target is $105. CVS stock’s consensus price target is $96.24, implying a 21.25% upside.

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