Women’s health has long been trapped in a vicious cycle: chronic underfunding leads to insufficient data, which in turn stifles innovation and perpetuates a lack of investment. Femtech-technology designed to address women’s health needs-emerges as a powerful opportunity to break this cycle.

The concept of femtech traditionally focuses more narrowly on reproductive health and menstruation. A more expansive definition encompasses gender-informed innovations across a vast spectrum of care, such as oncology, mental health, dementia, and Alzheimer’s disease.

In the age of AI, while the rise of femtech promises significant value, it faces unique and formidable challenges. These nascent technologies are constrained by insufficient governance frameworks, opaque technology infrastructures, and turbulent regulatory landscapes. Navigating this terrain is akin to traversing a labyrinth, where the path forward is fraught with risk.

The Paradox of AI

Designing a business model for femtech that is both socially impactful and commercially sustainable is a uniquely difficult endeavor. The economic reality is such that to achieve scalable impact, femtech startups must generate financial returns to fund operations, build a customer base, and secure future investment.

For many digital startups, the path to profitability involves “monetizing” consumer data—a strategy that typically entails extracting insights or licensing data to third parties. While data monetization in general raises ethical, privacy, and regulatory concerns, in femtech, the potential downsides are profoundly amplified.

First, health data is inherently sensitive and subject to a patchwork of stringent, sometimes conflicting, regulations across different countries. While these regulations are necessary and critical for protecting users, compliance can act as an entry barrier for resource-strapped startups.

Second, the nature of the data itself—menstrual cycles, fertility, and pregnancy—is uniquely intimate. When appropriated or leaked, the harm is not merely a privacy violation but can have devastating real-world consequences, from social stigma to legal jeopardy. High-profile data-related incidents and controversies, such as those experienced by the period-tracking app Flo, serve as stark warnings of how vulnerable this data is and the trust it can erode.

Third, in today’s complex and volatile political environment, regulations can shift unpredictably and unexpectedly. Femtech users have to navigate a perilous calculus: the risk of providing their data versus the benefit of using the technology. This can result in exclusion of the very vulnerable groups who might need the technology most.

Beyond the Digital Nudge

How can these labyrinthine challenges be tackled in such a fractured industry? The solution has to be multifaceted and systemic, involving not only technological innovations but also a broader transformation of the socioeconomic and cultural environments that surround the technology.

Design

Design is a critical piece of the puzzle. Some of the most effective designs in history subtly alter user behavior toward a desired outcome—a strategy known as “nudging,” frequently deployed in digital products. Femtech startups have shown promise by creating intuitive, user-friendly technologies. While different in purpose, existing designs from adjacent industries, from e-commerce to fintech, can offer valuable references.

Policy

Policymakers must confront the systemic inequities in women’s health head-on. This requires moving beyond piecemeal fixes to design comprehensive, long-term strategies that prioritize women’s health, fund research, and govern data and AI.

Investment and Innovation

Investors and innovators should recognize femtech as a prime candidate for disruptive innovation, as defined by the late Harvard Business School professor Clayton Christensen. It presents a classic market failure: a large, underserved community with a latent demand waiting to be unlocked by the creative design of new business models.

This space is being shaped by philanthropists and entrepreneurs. For example, Melinda French Gates has committed $215 million in fresh funding via her organization, Pivotal, with a focus on women’s reproductive and midlife health. This brings her total investment in women’s health over the past two years to over $600 million.

Cultural Shift

We must accelerate a profound cultural shift in how society perceives and discusses women’s health. It is not a niche “women’s issue” but a fundamental component of public health that affects everyone. Open, public discourse and reflection on women’s health must become commonplace, destigmatizing the topic and normalizing the conversation.

Education

To secure lasting change, women’s health must be fully integrated into educational curricula from an early age. The value of this education extends far beyond health literacy. By fostering a deeper understanding and dialogue of these issues, we also cultivate the empathy, perspective, and wisdom that will likely be some of the most essential human qualities in the age of AI.

This article is in collaboration with Anna Maria Speciale, United Nations Children’s Fund (UNICEF).

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