Datycs' initial product, a patient chart summarizer for physicians, faced slow adoption from health systems. The company found a more viable business model by pivoting to solve an urgent problem for payers: processing massive volumes of unstructured documents for back-office operations.

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CEO Srini Rawl explains that while many companies focused on structured healthcare data, Datycs targeted complex, unstructured documents. This challenging niche became their competitive advantage, creating a significant data and experience moat after processing over 15 million clinical charts.