Parallel, a French startup developing AI-driven automation tools for healthcare providers, has raised $3.5 million in seed funding. The round was led by Frst, with additional participation from Y Combinator, Bpifrance, Kima Ventures, Better Angle, and several business angels.
With this funding, the company plans to expand its engineering team, accelerate hospital deployments, and develop new AI-driven solutions for healthcare administration.
How does it tackle administrative inefficiency
Hospital administrative inefficiencies are a growing problem worldwide, accounting for up to 25% of total healthcare spending. A significant portion of these costs comes from manual data entry, outdated software systems that do not communicate, and a lack of automation tools in hospital back offices. Despite technological advancements, many hospitals still rely on inefficient processes that require staff to navigate between multiple systems, inputting data manually and closing workflow gaps.
These inefficiencies have been further exacerbated by ongoing staff shortages and rising patient demand. Healthcare professionals are forced to spend hours on administrative work, diverting their attention from direct patient care. The inability of hospital systems to integrate with one another only adds to the complexity, making automation a necessary solution rather than a luxury.
Generative AI fixes to reduce administrative burden
Parallel was founded by Paul Lafforgue (with experience at Meta and McKinskey) and Thomas Sohet (former CTO at Yago.be) in Paris in 2024. The company is on a mission to reduce the administrative burden in hospitals by building vertical AI agents capable of handling repetitive, time-consuming tasks, starting with medical coding.
Parallel is tackling this challenge with generative AI, which can navigate complex hospital software without requiring expensive system integrations. By leveraging large language models, the company can automate entire medical workflows, improving accuracy while allowing healthcare professionals to focus on higher-value tasks.
By automating complex administrative workflows, Parallel aims to free up valuable time for healthcare workers, allowing them to focus on patient care instead of paperwork.
Transforms medical coding with AI
Parallel’s first AI-powered agent targets medical coding, one of the most labor-intensive and error-prone administrative tasks in hospitals. Medical coding involves converting clinical notes into standardised billing codes, a process traditionally handled by trained professionals. This workflow is time-consuming, difficult to scale, and prone to human error, which can lead to billing discrepancies and delays in insurance reimbursements.
Parallel’s AI agent streamlines this process by reading clinical documentation, identifying the appropriate codes, and entering them directly into hospital systems. This automation eliminates manual data entry, reduces errors, and speeds up the billing cycle. By handling this critical administrative task with AI, hospitals can improve operational efficiency while ensuring compliance with coding standards.
Parallel’s approach differs from traditional automation solutions because its AI agents are built specifically for the complexities of healthcare. Instead of requiring costly system overhauls, these agents can operate within existing hospital software environments, bridging gaps in workflow without disrupting operations.
The future of AI in healthcare administration
The demand for AI-driven automation in healthcare is rising, as hospitals seek solutions that alleviate administrative burdens while maintaining high standards of accuracy and compliance. Parallel’s strategy of building vertical AI agents tailored for healthcare administration positions it as a leader in this transformation. With a clear vision and strong investor backing, the company is set to redefine how hospitals manage administrative workflows, paving the way for a smarter, more efficient healthcare system.
“AI agents can now interact with software like humans – navigating screens, clicking buttons, and entering data efficiently and accurately. In healthcare, where outdated systems and weak APIs have made automation challenging, this technology can finally bridge the gap,” said Paul, Co-Founder & CEO at Parallel
“Parallel’s approach is excellent. Their AI agent brings a level of auditability and accuracy that simply doesn’t exist today. In just three months, they’ve built a solution that could significantly streamline coding workflows and reduce administrative burden in hospitals,” stated Dr. Louis Rousselet, Head of Medical Information at GHICL.
“Parallel is tackling one of the most overlooked, yet crucial problems in healthcare -administrative overload. Recent advances in AI enables a step-change in efficiency that was previously out of reach. By working with existing tools rather than replacing them, it also makes adoption much more practical for hospitals,” added Pierre Entremont, Co-founder & Managing Partner at Frst.
The post AI agents for hospitals: Ex-Meta alum’s Parallel lands $3.5M to cut administrative burden appeared first on Tech Funding News.