Hims & Hers Bets Big on AI with Cruise Veteran at the Helm

Hims & Hers, the digital healthcare disruptor, has made a bold move to position itself at the forefront of AI-driven healthcare by appointing Mo Elshenawy, former President and CTO of Cruise (GM’s autonomous vehicle division), as its new Chief Technology Officer. The hire signals a strategic pivot to leverage AI’s transformative potential in healthcare—a sector where efficiency, personalization, and regulatory compliance are critical. Elshenawy’s experience in scaling high-stakes AI systems, most notably at Cruise, could be the catalyst for Hims & Hers to redefine how healthcare is delivered.

The Elshenawy Factor: From Self-Driving Cars to Healthcare

Elshenawy’s background is steeped in AI and robotics. As CTO at Cruise, he oversaw the launch of San Francisco’s first commercial driverless rideshare service, a feat requiring rigorous technical precision and regulatory navigation. At Amazon earlier in his career, he managed engineering and data analytics teams, amassing over 10 patents in AI and autonomous systems. His shift to healthcare isn’t a random pivot but a calculated bet on AI’s role in solving healthcare’s core challenges: fragmented systems, inconsistent diagnostics, and the need for personalized care.

The question for investors is: Can the skills that built a driverless car ecosystem translate to healthcare? Hims & Hers believes so. The company’s vision is to build an AI-powered healthcare platform that integrates diagnostics, treatment recommendations, and patient engagement. Tools like MedMatch, an AI-driven system for personalized treatment plans, will rely on the same machine learning principles that once optimized autonomous vehicles.

Why Healthcare Needs AI—and Why Now?

Healthcare’s inefficiencies are well-documented. According to McKinsey, AI could generate up to $150 billion in annual savings for the U.S. healthcare system by 2025 through better diagnostics, drug discovery, and operational efficiency. Hims & Hers’ focus on democratizing access to care aligns with this trend. The company’s telehealth model, which already connects patients with providers remotely, could be amplified by AI to reduce costs and errors.

But the stakes are high. Healthcare AI faces hurdles like regulatory scrutiny (HIPAA compliance, FDA approvals) and patient trust. Elshenawy’s experience in scaling autonomous systems—which require strict safety protocols—may prove valuable here. His emphasis on “human oversight” in AI decisions, as highlighted by CEO Andrew Dudum, suggests a balanced approach to integrating technology without sacrificing reliability.

The Investment Angle: Can Hims & Hers Deliver?

Hims & Hers (HIMS) has struggled to gain traction since its IPO, with its stock down over 60% from its 2021 high. Investors have been skeptical about its ability to scale beyond its niche men’s/women’s health products. The Elshenawy appointment could shift that narrative if the AI strategy bears fruit.

Consider the addressable market: The global AI healthcare market is projected to grow to $361 billion by 2025, driven by demand for personalized medicine and telehealth. Competitors like Teladoc (TDOC) have already integrated AI into their platforms, but Hims & Hers’ focus on preventive and chronic care—where AI can analyze vast datasets for early intervention—could carve out a unique niche.

Risks and Realities

The gamble isn’t without risks. Scaling AI in healthcare requires significant capital and time. Cruise’s autonomous vehicle program, which Elshenawy led, faced delays and cost overruns, despite GM’s deep pockets. Hims & Hers’ financials—revenue growth slowed to 12% in 2023—might strain under heavy R&D spending. Additionally, AI’s “black box” problem could alienate regulators if outcomes aren’t transparent.

Conclusion: A High-Reward, High-Risk Bet

Elshenawy’s appointment is a signal that Hims & Hers is aiming for category leadership in AI-driven healthcare. If successful, it could capitalize on a $361 billion market, leveraging its existing telehealth infrastructure and a CTO with a proven track record in complex AI systems.

However, execution is everything. Investors should monitor milestones like FDA approvals for AI tools, MedMatch’s adoption rates, and cost efficiencies from AI integration. The stock’s current valuation—trading at 2.5x revenue—leaves room for upside if the AI strategy delivers. For now, it’s a speculative play on the intersection of AI and healthcare—a space where the rewards for winners could be enormous, but the pitfalls are just as steep.

In the words of the company’s CEO, “AI isn’t about replacing doctors—it’s about empowering them.” If Hims & Hers can pull this off, the market—and investors—will take notice.