Ambience’s latest AI model reduces coding errors and targets $266 billion in annual administrative waste
SAN FRANCISCO, CA / ACCESS Newswire / May 27, 2025 / Ambience Healthcare today announced a major advancement in ambient AI, unveiling the first AI model that outperforms board-certified physicians in ICD-10 coding accuracy.
Trained using OpenAI’s Reinforcement Fine-Tuning (RFT) technology, Ambience’s AI platform achieved a 27% relative improvement over physician benchmarks-reducing coding errors by approximately one-quarter and offering a powerful tool to tackle the $266 billion in annual administrative waste, including $19 billion in diagnosis coding & documentation substantiation errors.
This new model identifies precise ICD-10 codes based on patient encounters, which feed into Ambience’s ‘coding-aware’ scribe. By leveraging these codes first, the scribe generates a fully informed note-allowing clinicians to review and confirm accurate documentation and coding in real time.
“Think of this technology as a scribe that fluently speaks both clinical language and the intricate healthcare billing rulebook from day one,” said William H. Morris, MD, MBA, Chief Medical Officer of Ambience Healthcare. “Our platform helps clinicians finish their notes faster and ensures that revenue cycle teams receive cleaner, more accurate, and audit-ready charts.”
Ambience is live across inpatient, outpatient, and emergency settings at health systems throughout the United States, supporting over 100 medical specialties with real-time, compliant documentation. Clinicians at more than 40 organizations including UCSF Health, St. Luke’s Health System, Houston Methodist, John Muir Health, and Memorial Hermann Health System leverage Ambience before, during, and after patient encounters to generate compliant documentation, alleviate burnout, and enhance care quality.
How Ambience’s “Coding-Aware” AI Scribe Works
Ambience Healthcare’s platform streamlines the clinical documentation and coding process:
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Clinicians simply tap ‘Record’ on their device, conduct patient visits as usual, and then review a draft note, complete with suggested ICD-10 and CPT codes;
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Ambience integrates natively with major EHRs-including Epic, Oracle Cerner, and athenahealth-ensuring that after clinicians review and sign off, the complete and coded documentation is automatically filed back into the patient’s record;
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By addressing coding at the point of care, Ambience eliminates downstream compliance issues and the time-consuming back-and-forth queries between clinicians and coding/billing departments.
“We built for compliance at the core of our platform because health systems need assurance that AI technology in the workflow can stand up to audits, protect reimbursement, and support clinical documentation integrity,” said Michael Ng, CEO and Co-Founder of Ambience Healthcare. “The stakes of getting this wrong are too high for compliance to be an afterthought.”
Validated Results with RFT Technology
To validate its AI’s mastery of the “coding rulebook,” Ambience assembled a “gold-panel” test dataset of complex clinical cases spanning multiple medical specialties. Each encounter was meticulously labeled by a consensus of four or more expert clinicians to establish a high-quality ground truth.
“Reinforcement Fine-Tuning lets developers align powerful AI models with the precision and robustness that high-stakes domains like healthcare demand,” said Shyamal Anadkat, Head of Startup Solutions at OpenAI. “Ambience’s results show how RFT can lift the performance of AI systems in safety-critical environments”.
The Ambience model was benchmarked against 18 experienced, board-certified physicians on ICD-10 coding accuracy. The results were significant: Ambience’s AI demonstrated a 27% relative improvement in coding performance compared to the expert physician baseline, suggesting the model could help eliminate up to one quarter of the coding errors even the most seasoned clinicians make.
About Ambience Healthcare
Ambience Healthcare is the leading AI platform for clinical documentation, CDI, and coding-built to ensure compliance, eliminate administrative burden, and improve care delivery. Trusted by top health systems across North America, Ambience’s platform is live across outpatient, emergency, and inpatient settings, supporting more than 100 specialties with real-time, coding-aware documentation. The platform integrates directly with Epic, Oracle Cerner, athenahealth, and other major EHRs. Founded in 2020 by Mike Ng and Nikhil Buduma, Ambience is headquartered in San Francisco and backed by Andreessen Horowitz, OpenAI Startup Fund, Kleiner Perkins, and other leading investors.
Media Contact
Karina Stabile
Aria Marketing for Ambience Healthcare
kstabile@ariamarketing.com
516-317-5835
SOURCE: Ambience
View the original press release on ACCESS Newswire
