AI Evolution

The OctopusLM Pulse: How AI in Medical Records Has Changed (and What's Next)

Kaival Patel
Jan 2, 2026 4 min read

Medical record review has gone through four generations of technology. Understanding where we've been helps explain where we're going — and why the current moment matters for claims professionals.

Generation 1: Keyword search

The earliest digital approach: search for "diabetes" and get every mention across a file. Better than flipping pages, but limited. No context. No connections. No understanding of what actually matters for the claim.

Generation 2: Entity extraction

AI learned to identify specific data types: diagnoses, medications, procedures, dates. Medical records became structured data instead of raw text. This was a major step forward. But extracted entities without context don't tell a story. Knowing a patient was prescribed metformin doesn't explain why, or what it means for the claim.

Generation 3: Generative summaries

Large language models added a narrative layer. AI could now write coherent summaries that connected extracted data points into readable reports. But there was still a gap: users had to determine which information was relevant to their specific case. The AI summarized everything — adjusters and physicians still had to connect dots.

Generation 4: AI agents and Q&A

The current evolution. Instead of reading vendor-defined summaries, users can ask specific questions and get targeted answers.

  • "Was the claimant compliant with prescribed treatment?"
  • "What's the progression of the lumbar condition over the past 3 years?"
  • "Are there any pre-existing conditions related to this injury?"

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