Nice recommends first AI medical device for skin cancer diagnosis in the NHS

Approval marks milestone for AI use in frontline care

NICE has endorsed DERM, an autonomous AI medical device developed by Skin Analytics, for detecting skin cancer. This recognition marks a major step in using AI to free up clinician capacity and improve patient outcomes across the NHS.

NICE reviewed various technologies and recommended DERM as the only AI tool suitable for NHS use. It is the first dermatology solution to achieve a class III CE marking under the European Medical Device Regulation and a positive recommendation from NICE’s Early Value Assessment programme.

Dr Julia Schofield, Consultant Dermatologist, said: “The NHS is in crisis. This tool, approved as safe by regulators, has the potential to reassure patients and avoid the necessity for hospital visits.”

Already used across 26 NHS sites, DERM has handled over 165,000 patients and identified more than 15,500 skin cancers. Data shows it detects 97% of cancers, with a Negative Predictive Value for melanoma of 99.8%, performing as well as, or better than, dermatologists in ruling out cancer cases.

DERM’s ability to triage patients safely supports the NHS 10 Year Cancer Plan, which aims to diagnose 75% of cancers at stages one or two by 2028. It also alleviates pressure on dermatology services, with the potential to autonomously discharge up to 40% of urgent referrals.

Neil Daly, CEO of Skin Analytics, stated: “NICE’s endorsement signals the readiness of medical-grade autonomous AI to play a foundational role in modern healthcare. This is the beginning of what AI can do to support patients and overstretched clinicians.”

NICE’s endorsement sets a benchmark for safe, scalable use of AI diagnostics, paving the way for widespread adoption across healthcare systems.