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Advancing Healthcare in India: Navigating the Transformative Impact of AI

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Indian healthcare sector is expanding rapidly, driven by increased government and corporate investments. However, it continues to face significant challenges in accessibility, affordability, and quality of care. These issues are particularly pronounced in rural and underserved areas, where healthcare infrastructure remains underdeveloped. Artificial Intelligence (AI) is emerging as a powerful tool to address these challenges by enabling personalized care, improving diagnostic accuracy, optimizing resource allocation, and reducing costs. AI's potential extends further, offering innovative solutions that can accelerate India's progress toward its long-term healthcare goals. 

This report, titled Advancing Healthcare in India: Navigating the Transformative Impact of AI, covers the AI focus, adoption and maturity trends across various stakeholder categories, and offers a comprehensive playbook for stakeholders, aiming to drive AI adoption and enhance the overall efficiency and effectiveness of the Indian healthcare ecosystem.

Key Findings

Although the Indian healthcare market (in value terms) is poised to grow at a CAGR of 21.6% between 2016 and 2025, it is plagued by the “Iron Triangle” of Access, Cost and Quality

  • In comparison to other leading ecosystems like the US, the UK, China and Japan, Indian healthcare sector falls short on parameters like life expectancy at birth, Healthcare Access and Quality (HAQ) Index, Hospital Bed-Population Ratio, Doctor-Population Ratio, and Out of Pocket Expenditure
  • The Indian healthcare AI market is expected to grow at a CAGR of 40.5% between 2020 and 2025, breaking the “Iron Triangle”, and allowing for addressal of key challenges like inadequate healthcare infrastructure, lack of skilled healthcare professionals, and unaffordability.
The AI maturity remains low for Indian Healthcare sector due to lower AI integration, focus on PoCs, inadequate budget allocation, and a lack of a formal risk assessment and monitoring

  • More than 2/3rd of the pharma and life sciences organizations have adopted AI. However, majority of them are still in the scaling up phase
  • AI in MedTech is still at a fairly nascent stage, with only 36% of the organizations having adopted AI
  • AI adoption in the healthcare providers segment is relatively high at 68%, but most of the deployments are in the PoC phase
  • Gen AI adoption in India is at an early stage with 34% of the healthcare organizations piloting projects in 2023, and 16% moving Gen AI use cases to production

     

In the short term, AI can drive efficiencies, speed and accuracy; in the medium-term AI can enable preventive care and personalized treatments; while in the long term, AI can help in achieving universal healthcare coverage

  • To achieve these future goals, five foundational elements – Infrastructure, Skills, Planning & Implementation, Scalability, and Regulatory Framework – must be in place
  • Building a robust infrastructure is critical for AI in healthcare to provide the capacity and connectivity needed for advanced diagnostics, patient care, and data-driven decision-making
  • Equipping healthcare professionals and policymakers with AI skills is essential to harness the full potential for improved healthcare outcomes and operational efficiency
  • Effective planning and implementation are crucial for successful AI integration in healthcare, ensuring strategic alignment, readiness, and sustainable transformation
  • A clear regulatory framework fosters safe and ethical AI adoption in healthcare, promoting innovation while protecting patient privacy and ensuring compliance
  • Scalability is key for broad AI adoption in healthcare, allowing for adaptable and effective solutions across various healthcare environments and patient needs

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