While artificial intelligence has gained a lot of attention in India's healthcare sector, new industry reports suggest that hospitals are still struggling to translate pilots into large-scale deployments, with only 11% of respondents moving AI solutions into production, according to a new survey.
The CII-PwC India report was released on the basis of a survey of 28 senior healthcare leaders conducted in August. 93 per cent of respondents believed that AI can drive efficiencies, while 64 per cent have already piloted AI applications. However, only 11 per cent have taken AI into production, highlighting the gap between industry interest and actual deployment.
The report said funding is not the primary barrier to AI adoption, merely 7 per cent of respondents identified budget constraints as the biggest reason for AI deployments stalling. Data quality was cited as the biggest hurdle with 36 per cent, followed by change management at 21 per cent and clinician adoption at 14 per cent.
The CII-PwC survey identified data quality as the biggest barrier to stalled AI deployment. Change management and clinician adoption were also identified as challenges.
The Bain-HealthQuad report raised separate concerns about electronic medical record adoption, integration with hospital workflows, regulatory issues and clinical oversight.
How healthcare organisations manage sensitive patient data also plays an important role in scaling AI.
Alongside the AI report, CII released the CII-Deloitte Knowledge Report, Unlocking Data Governance in Alignment with the DPDP Act and Rules.
The report highlights the need for robust data governance practices in healthcare, covering data discovery, privacy and consent management, secure data sharing, cybersecurity preparedness and the responsible use of AI. It outlines a roadmap for healthcare organisations to build trusted, secure and AI-ready digital healthcare systems aligned with India’s evolving data protection framework.
The Ayushman Bharat Digital Mission has expanded India's digital-health infrastructure. But hospitals are at different stages when it comes to electronic medical records and other systems needed for AI tools. The reports also pointed to problems involving data, interoperability and integration with clinical workflows.
According to the report, India has made tangible progress in building the foundations AI needs. The report highlighted rapid advances in AI capabilities, while stressing that wider healthcare adoption will still depend on data readiness, trust and effective implementation.
At the same time, these capabilities are becoming more accessible: the cost of frontier AI models has fallen by approximately 92% since 2023, as per the report.
AI adoption in Indian healthcare is still early, but the conditions for it to scale are strengthening quickly.Dhruv Sukhrani, Head of Healthcare & Life Sciences, Bain & Company, India
Namit Chugh, Director – HealthQuad said: “Healthcare in India has always been constrained by scarcity of clinicians leading to enormous variation in access and outcomes. AI can potentially change that equation by being not just an efficiency lever, but a capacity multiplier."
The Bain-HealthQuad report showed:
Electronic medical records were used by about 35% of hospitals in India. The report said larger hospital chains in urban areas accounted for much of this adoption. Smaller and mid-sized hospitals still relied largely on paper records.
Operational AI applications, including medical documentation, paperwork, billing and claims processing, are scaling faster than clinical ones.
Major opportunities in remote patient monitoring, ICU and operating theatre optimization, and chronic disease management.
Data readiness, workflow integration, clinician trust and human oversight remain key constraints.
While large-scale clinical deployment remains limited, AI is gaining traction first in operational areas, where it can help reduce administrative burdens on doctors and other healthcare workers. The Bain-HealthQuad report identified remote patient monitoring, operating theatre and ICU optimisation, and post-discharge chronic disease management as major areas for future growth.
Hospitals in India are showing growing interest in AI, but using the technology on a wider scale remains difficult. The reports identified issues involving digital records, data, hospital workflows and clinical oversight. AI is already being used in some operational areas. Its wider use in clinical settings will depend on how hospitals address these challenges.
(Rh/MF/MSM)