As healthcare organizations plan for the future, Generative AI (GenAI) is emerging as a critical asset for sustainable growth, improving patient outcomes, and enhancing operational efficiency. With its capacity to streamline processes, foster innovation, and elevate customer service, GenAI is becoming increasingly pivotal in healthcare.
However, realizing the full potential of GenAI requires considerable investment and a well-defined strategy. Many healthcare firms are proactively integrating GenAI into their operations, focusing on both immediate benefits and the long-term horizon.
The Healthcare Firms Going Long on GenAI Investment report from PYMNTS Intelligence examines how healthcare organizations are leveraging GenAI and the challenges they encounter in scaling these solutions effectively.
A Strategic, Long-Term Commitment to GenAI in Healthcare
Healthcare companies are viewing GenAI as essential to long-term growth and innovation. According to the report, an impressive 90% of surveyed healthcare executives noted positive returns on their GenAI investments, despite the high costs and gradual adoption rates typically associated with such technologies. This trend signifies a shift in perspective, with industry leaders recognizing GenAI as a key driver not only for competitiveness but also for meaningful advancements in patient care and efficiency. With an average full-scale GenAI adoption timeline of 7.4 years, the healthcare sector is aligning itself with cross-industry AI trends, underscoring its commitment to staying at the forefront of technological innovation.
Higher Investment, Higher Returns
The report highlights a direct link between GenAI spending and return on investment. Over the past year, healthcare firms invested an average of $2.7 million in GenAI, but those reporting the highest returns invested significantly more—around $6.4 million on average. This insight underscores the need for healthcare firms to scale GenAI carefully, with larger initial investments often yielding higher outcomes in areas like diagnostics, patient care, and operational efficiency. By focusing on strategic GenAI scaling, healthcare firms can achieve substantial gains, especially in patient-facing and operationally intensive areas.
Targeted Applications: Innovation and Customer Service
Many healthcare firms are leveraging GenAI to drive innovation and improve customer service. About 60% of executives surveyed report using GenAI for product and service innovation, enhancing their research and development capabilities to develop novel healthcare solutions. Additionally, GenAI-powered customer service tools, including advanced chatbots and automated response systems, are enhancing patient accessibility and engagement.
Interestingly, many organizations are adopting a cautious approach to deploying GenAI in sensitive functions like fraud detection and cybersecurity. While the potential of GenAI in these areas is significant, healthcare organizations are prioritizing safer, less regulated applications initially to minimize risk and ensure compliance.
As GenAI adoption accelerates, healthcare firms are experiencing notable returns by focusing on innovation and customer service. However, their cautious approach to sensitive areas such as fraud prevention and cybersecurity reflects a prudent strategy, balancing innovation with security and compliance. For healthcare firms, the challenge will be to scale their GenAI capabilities thoughtfully, making GenAI an enduring asset that aligns with both technology-driven and patient-centered goals.
