Can AI Cure Australia’s Telehealth Strain?

AI startups Eucalyptus and Heidi Health push virtual care into a new era of automation, access, and accountability

12 Nov 2025

Australia’s virtual healthcare sector is undergoing a rapid transformation, powered by artificial intelligence. Faced with persistent staff shortages and rising demand, providers are turning to automation to keep the system afloat.

Digital health firm Eucalyptus has partnered with Amigo, an American startup, to introduce AI-powered agents into its network of online clinics. The tools manage triage, reminders and follow-ups, leaving doctors to focus on complex cases. Early results suggest that fewer than 2% of interactions need human intervention, evidence, say the companies, that automation can work safely at scale.

Another local player, Melbourne-based Heidi Health, has raised about US$65m in Series B funding to expand its AI platform. The software generates clinical notes and care plans automatically, trimming paperwork so clinicians can spend more time with patients. Together, these efforts mark a shift from simple video consultations to data-driven collaboration between humans and machines.

“We’re not replacing clinicians,” said a senior Eucalyptus executive. “We’re giving them the tools to focus on what truly matters, patient care.” Researchers at the Australian e-Health Research Centre note that such tools could prove vital in rural areas where medical staff are scarce.

But obstacles persist. Outdated record systems impede integration, and regulators are scrambling to update safety and accountability rules for AI in clinical settings.

Even so, momentum is growing. Investors are funnelling unprecedented sums into AI healthcare ventures, while foreign firms eye Australia’s digitally savvy market. If managed wisely, this blend of human expertise and machine intelligence could make care faster, cheaper and more accessible. The challenge will be keeping the code as trustworthy as the clinicians it supports