Abstract

The case discusses the use of artificial intelligence (AI) by CVS Health Corporation (CVS Health), one of the largest healthcare companies in the US, to enhance customer experience across its diversified portfolio by delivering real-time, personalized care plans and preventative care, improving customer experience and clinical outcomes, and transforming patient engagement. In 2025, the launch of AI-powered platforms such as the Aetna Care Paths and the CVS Health App, and its promise to make a US$20 billion investment by 2035 to transform the healthcare experience through emerging technologies demonstrated the healthcare giant’s commitment to personalized care and digital health navigation. Owing to these initiatives, CVS Health reported measurable outcomes, such as improvements in medication adherence, enhanced supply chain efficiency, stronger fraud detection, and higher digital engagement. For instance, CVS Health’s AI-driven personalization and digital-first engagement strategy, supported by its Microsoft Azure partnership, expanded the company’s digital customer base to over 61 million unique users – an approximately 11% Y-o-Y increase – reflecting the tangible impact of AI automation on consumer reach and engagement. However, CVS Health could encounter a host of challenges in leveraging AI effectively. These include data privacy, regulatory compliance, cybersecurity risk, interoperability, and acquiring and retaining technical talent. Also, can CVS Health continue to ensure a human connection in the offering of care while scaling AI integration across its services?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand how organizations can use AI to build a sustainable competitive advantage
• Understand how healthcare businesses leverage AI to enhance customer experience
• Identify the challenges faced by a healthcare company in scaling AI across its business segments

Keywords

Artificial Intelligence; Customer Experience; AI in Healthcare; Sustaining Competitive Advantage; Machine Learning,Artificial Intelligence; CVS Health; Dynamic Capabilities; AI-driven Healthcare; Virtual Care; Patient management