I would be more careful with your assessment. Or you are overfitting to your limited 5-minute-understanding of what this does. Telling mathematicians and statisticians they have overfitted is akin to a grave professional insult (you are basically accusing them of foolish behavior at best, fraud/unethical behavior at worst. As a bioinformatician, you may be interested in these articles, which go a little deeper on the technology: https://www.nature.com/articles/srep01236 https://www.sciencedirect.com/science/article/pii/S240547121... http://journals.plos.org/plosone/article?id=10.1371/journal....
> probably doesn't have the data to really build a robust model
It is both possible to build robust models on small datasets (and that data is shared, or more abundant than you expect).
> Even major academic centers have relatively limited data for the number of permutations of health possibilities.
This is one of the problems they (the IT supplier) solved. They are able to build regulatory-proof models from 100.000's of permutations. Another, more recent, advance is in counterfactual analysis (what would have happened if this pneumonia patient also had COPD?).