Indian Hospitals Set to Boost IT Innovation Spend by 25% as AI Adoption Accelerates

Hospitals to Boost IT Innovation Spending by 20-25% with AI and Automation Focus

Indian hospitals are set to increase their IT innovation budgets by 20-25% over the next two to three years, driven primarily by artificial intelligence (AI), automation, and data-driven tools. This insight comes from the CII–EY HealthTech Survey 2025, which reveals a clear shift in investment priorities despite ongoing challenges with workforce readiness and system integration.

Nearly half of the surveyed hospitals have already allocated between 20% and 50% of their IT budgets to digital initiatives. AI-powered solutions, automation, and data analytics are playing a central role in shaping hospital technology strategies.

Key Investment Areas

• 60% of hospitals are investing in building IT capabilities
• 50% are focusing on business intelligence tools and data lakes
• AI use cases such as clinical documentation (72%), decision support systems (64%), and medical imaging (60%) are prominent targets

While hospitals are eager to embrace these technologies, common obstacles remain. Workforce upskilling is a priority for 60% of hospitals, and resistance to change, legacy system integration, and data management challenges continue to slow progress.

Hospital Perspectives on Spending

Saifee Hospital, Mumbai, is undergoing a major IT overhaul. According to Medical Director Hardik Ajmera, their AI-based electronic health records (EHR) and hospital management information systems (HMIS) upgrades already exceed the 20-25% budget increase projected by the report. “We expect similar trends at most hospitals,” he said.

Ujala Cygnus Healthcare Services currently dedicates 5-7% of its budget to IT, automation, CRM infrastructure, and clinical decision support systems. Prateek Ghosal, Chief of Strategy, Growth and Digital, expects this share to rise above 10% in the next few years as AI capabilities expand to automate backend operations.

Kailash Group of Hospitals has invested ₹5 crore in IT innovation, with 25-30% allocated to digital projects. Director Pallavi Sharma anticipates a 25% increase in digital spending over the next two years, matching broader industry trends.

Maxivision Super Specialty Eye Hospital is taking a more aggressive stance. Chief Business Officer Ganesh Subramaniam reports that over 30% of their IT budget is already dedicated to digital initiatives, with plans to continue surpassing the 20-25% growth forecast to maintain a competitive edge.

Challenges and Compliance

Most hospitals have established frameworks for privacy and compliance, but adoption of the Ayushman Bharat Digital Mission remains incomplete. This gap highlights the need for better coordination between healthcare providers and government initiatives to maximize the benefits of digital healthcare transformation.

With AI and automation becoming integral to healthcare delivery, continuous investment in workforce training and system upgrades is essential. For healthcare professionals interested in advancing their skills in AI and automation, exploring specialized courses can provide practical knowledge to stay ahead in this evolving landscape.

Learn more about relevant AI courses and certifications at Complete AI Training.