New Report Finds 90 Percent of Hospitals Have an AI Strategy; Up 37 Percent from 2019
Awareness and adoption is on the rise, with executive familiarity growing to 66 percent and solution deployment growing to 34 percent
A new report from Sage Growth Partners highlights soaring demand for artificial intelligence (AI) technologies within the healthcare sector heading into 2021. The newly released data builds on a 2019 study, also from Sage Growth Partners, which showcased growing understanding and use of AI-powered technologies among healthcare executives. The latest data suggests a surge in prioritization for such investments, particularly within non-clinical departments, as healthcare organizations look to meet operational needs and mend disrupted revenue cycles that are essential to the financial viability of each organization.
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Unlike other commerce sectors, healthcare has traditionally been viewed as a laggard amid the digital transformation movement. According to the 2019 study, half of hospital leaders were familiar with the concept of AI, and more than half were unable to name an AI vendor/solution. The latest study points to how rapidly awareness, adoption and implementation of these technologies have gained traction in just 18 months. The 2020 findings show:
Healthcare executives are increasingly prioritizing automation technologies in their hospitals, and they’re already seeing ROI through reduced costs:
- 76 percent of respondents said automation has elevated in importance because cutting wasteful spending will help them recuperate and grow faster
- 90 percent have an AI/automation strategy in place, up from 53 percent in Q3 2019
- More than half (56 percent) reported ROIs of 2x or higher on their automation technologies
Further, executives report a heightened urgency around adoption; 75 percent of respondents believe strategic initiatives around AI and automation are more important or significantly more important in 2021 since the pandemic.
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Despite seeking out automation solutions and getting a strategy in place, scaling and implementation remain to be challenges:
- Only 7 percent of hospital’s AI strategies are fully operational
- Just 6 percent of respondents cited having 10 or more use cases live across their organization
- 44 percent of respondents cited resource constraints (e.g. not enough staff to support implementation) and difficulty identifying best processes for automation as their top two implementation challenges
“It’s incredibly promising to see the continued and growing adoption of AI within healthcare,” said Sean Lane, CEO of Olive. “AI solutions are essential pieces of infrastructure at hospitals and health systems, and we have just begun to scratch the surface. There are so many more connections to make using AI– so many more lights to shine on all of the broken healthcare processes that stand between providers and patient care.”
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