You sort of side stepped the author's point, though.
> In medicine you have the modern labs which automate a lot and you have the old labs. These 'neolabs' are better because of intelligence.
The author is not denying that a lab can be more effective with intelligence, they're arguing that this entire phase of the process of improving health is not the bottleneck.
And that, furthermore, the new labs and the old labs still both remain incentivized by the regulatory environment to chase the wrong targets. The new lab might just iterate towards the wrong targets faster.