AI in Healthcare (Part-1) : Context, Growth and the Road Ahead
Based on the World Economic Forum & BCG’s January 2025 White Paper: “The Future of AI-Enabled Health”
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Now, let's dive into today's topic: AI in Healthcare (Part-1) : Context, Growth & the Road Ahead.
Context: AI’s Expanding Role in Healthcare
Healthcare is entering an AI-driven revolution.
From patient care to public health planning, AI is transforming how stakeholders operate, with opportunities spanning the entire value chain:
Care Providers: Benefit from a range of AI solutions — from diagnostics and care provision to patient monitoring - all aimed at improving clinical outcomes.
Pharmaceutical Firms: Use AI to accelerate drug discovery and enhance operations and supply chains.
Payers & Insurers: Leverage AI to reduce costs and improve risk management, with the goal of delivering higher-quality coverage at a lower cost to consumers.
Medtech: Develop more efficient, personalized, and patient-centred devices by incorporating features such as AI-enabled preventive maintenance into product life cycles.
Public Health Agencies: Improve resource planning and allocation, anticipate public health needs, and execute programmes more effectively through AI.
Why it matters: These are not distant possibilities — many of these use cases are already validated, while others are in early-stage or conceptual development.
Growth Story: GenAI in Healthcare is Outpacing All Sectors
The GenAI healthcare market is expected to grow faster than any other industry, with an 85% CAGR from 2022–2025 — hitting $22B by 2027.
Market share surge: Healthcare’s share of the GenAI market will jump from 10% in 2022 to 31% in 2027.
Year-on-year acceleration of GenAI Market: Growth rates as high as 131% in 2022, stabilising to 38% by 2027.
Interpretation -
High-value problems (drug discovery, diagnostics, operations) ripe for AI disruption.
Massive cost-saving potential in processes like claims handling and inventory management.
The ability to create entirely new business models — e.g., AI-driven preventive care.
Takeaway: GenAI isn’t just an add-on in healthcare - it’s fast becoming a core driver of sector growth.
How AI is Being Used Across Healthcare Today (Use Cases)
From global pharmaceutical companies to nimble startups, organisations across the spectrum are already delivering on AI's promise. These use cases have been demonstrated throughout the entire healthcare value chain.
The Adoption Gap – Why Healthcare Still Lags
Despite the growth, healthcare’s AI/data maturity score is 300 — behind technology (313), BFSI (309) and consumer industry (305).
Maturity Growth since 2021: +8% - steady but slower than sectors like automotive (+17%).
Key barriers:
Data interoperability issues across fragmented health systems.
Regulatory complexities when deploying AI in clinical settings.
Limited in-house AI expertise in healthcare organisations.
The opportunity is enormous, but success will hinge on bridging data readiness, regulatory compliance, and adoption speed. Organisations that move early on these fronts are likely to dominate the next decade of healthcare AI.
📌 Source:
All data, figures, and use case descriptions in this article are drawn from the World Economic Forum and Boston Consulting Group report “The Future of AI-Enabled Health: Leading the Way” (January 2025).
Link to Report - Check it out (Full report) !!!
Coming up next:
In our next article, we’ll explore the key barriers and challenges that must be addressed to implement AI at scale in healthcare.
This will be a continuation of our deep dive into the World Economic Forum & Boston Consulting Group report
Until next time, Keep Smiling,
Arjun Shrivastava,
Founder – Curaa.in ,