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Microsoft’s AI Is Now Diagnosing Like a Doctor—And Cheaper Too

July 2, 2025
in News, Technology
Reading Time: 5 mins read
2
0

Microsoft has thrown its hat deeper into health care, revealing AI tech that’s not just mimicking physicians—it’s beating them at their own game. And it’s doing it for less.

On Monday, Microsoft AI rolled out research that’s catching serious attention across medicine and tech. With a new benchmark and a model-agnostic tool to match, their system is diagnosing complex cases more accurately than most doctors and at a lower cost. CEO Mustafa Suleyman thinks it might just be the first real step toward something he calls “medical superintelligence.”

A Benchmark Built to Break You

Microsoft’s new Sequential Diagnosis Benchmark, or SDBench, is no joke. It’s based on 304 of the toughest medical cases pulled from the New England Journal of Medicine’s archives—the kind of clinical puzzles that stump seasoned professionals.

The setup is clever. A human or AI is shown a short clinical case description. From there, they need to order tests or ask for more information, mimicking the kind of decision-making a doctor does in real life.

One catch? You only get answers when you ask the right question. A “gatekeeper” agent controls access to each bit of patient data. That keeps things realistic—and forces both human and machine to think.

Microsoft AI diagnostic Copilot medical interface

AI Doesn’t Just Guess—It Orchestrates

Enter Microsoft’s big reveal: the MAI Diagnostic Orchestrator, or MAI-DxO. It’s not just another AI model. It’s more like a super-coach that knows how to guide any model through diagnostic decision-making.

It’s also agnostic. It doesn’t care if it’s running OpenAI’s GPT, Google’s Gemini, Meta’s Llama or even Elon Musk’s Grok. It just works.

And here’s the shocker: MAI-DxO nailed the diagnosis 85.5% of the time.

Compare that to physicians in the same trial, who were accurate only 20% of the time. That’s not a small gap. That’s the Grand Canyon.

But there’s more. It didn’t just get things right—it saved money doing it.

What the Numbers Say

Microsoft says MAI-DxO made smarter decisions. It ordered fewer unnecessary tests and got to answers faster. That slashed diagnostic costs by 20%.

Here’s a quick breakdown:

Metric Physicians MAI-DxO
Diagnostic Accuracy 20% 85.5%
Avg. Cost of Diagnostics 100% 80%
Case Complexity (NEJM cases) High High
One important detail: the doctors in the study weren’t allowed to use Google, AI tools, or even UpToDate. That’s not realistic, critics say. Most modern physicians lean heavily on digital resources. Some research suggests 70% of doctors use search engines daily. About 1 in 5 already use AI tools in their workflows.

Still, even with a slight handicap, the results sting.

Microsoft’s Bigger Plan: Medical Superintelligence

Mustafa Suleyman isn’t just a tech guy. He co-founded DeepMind, sold it to Google, and now runs Microsoft AI. And he’s talking big.

He says this is all leading toward “medical superintelligence.” What’s that mean? Think of an AI that’s not just better than most doctors—it’s better than all of them. Not just in one specialty. In all of them.

He put it simply: “It is a model which is multiple times better than the best humans in the world.”

His team’s mission is clear: build tools that combine deep medical knowledge, smart decision-making, and access to a universe of patient cases—without burning a hole in the health system’s wallet.

And honestly? It’s not as far off as it used to be.

But Let’s Talk Limits

It wasn’t a perfect setup.

The doctors used in Microsoft’s trial were experienced—a median of 12 years in practice—but they weren’t allowed their normal tools. That’s like asking a surgeon to operate blindfolded. Fair? Probably not.

Still, Microsoft says the whole point was to isolate sequential reasoning skills.

“This isn’t about memory,” said Dr. Dominic King, Microsoft AI’s health VP and a veteran of both Google Health and DeepMind. “It’s about decision-making. It’s about thinking like a doctor.”

And even with the restrictions, the doctors weren’t wildly off-base. They asked smart questions. They just didn’t have the firepower MAI-DxO did.

That alone says something.

What This Could Mean for Health Care

Let’s not forget the stakes here.

  • Each year, 7.4 million Americans are misdiagnosed in ERs.

  • One in every 350 patients dies or is permanently disabled because of it.

  • Unnecessary testing adds billions in wasteful spending.

If MAI-DxO (or something like it) can reduce that even by a fraction, it’s a win. For doctors. For hospitals. For patients.

There’s also potential for health systems to pair human physicians with AI copilots—letting each do what they do best. Think Iron Man, not replacement.

And Microsoft knows it needs to go slow. The tech hasn’t been deployed in hospitals yet, but the company’s in talks with unnamed health partners to set up trials.

“It’s a multi-year process,” said King. “We need to earn trust. And we need to get this right.”

Copilot’s Role and Public Pressure

While MAI-DxO is still in research, Microsoft’s Copilot is already helping millions with everyday health searches.

People ask about everything—headaches, anxiety, chronic pain—and they want reliable info fast. Suleyman says the more diagnostic intelligence Copilot gains, the better it can serve real people in real moments.

But with great reach comes massive responsibility.

If AI starts offering clinical advice—or even pre-diagnoses—it can’t afford to guess. It has to be right or know when to stay quiet.

That’s the real challenge.

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Chrissy Ryland

Chrissy Ryland

Chrissy Ryland - I'm a freelance writer and blogger from Northern California. I grew up loving all things entertainment and travel and now I am blessed with a career that lets me write about both of those topics along with many others. For inquiries about a story you think I might want to cover, please contact me at worldhab@gmail.com

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