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Indian Hospitals Plan 20–25% Rise in IT Innovation Budgets as AI Adoption Scales

Industry leaders urge public‑private collaboration to tackle skills gaps, integration hurdles, cybersecurity risks.

Overview

  • Released at the CII HospiTech 2025 summit in Mumbai, the CIIEY HealthTech Survey 2025 reports nearly half of providers already devote 20–50% of IT budgets to digital innovation.
  • Hospitals expect to lift innovation spending by roughly 20–25% over the next two to three years, with top priorities including better clinical outcomes, data‑driven decisions, and improved patient experience.
  • AI funding is broad‑based, with more than 70% investing in clinical documentation and analysis, 64% in decision support, and 60% in imaging, indicating a shift from pilots to scalable deployments.
  • Key challenges cited include workforce upskilling by about 60% of hospitals, resistance to change, integration with legacy systems, data management, hardware and storage limitations, and cybersecurity concerns.
  • Adoption of the Ayushman Bharat Digital Mission remains uneven, with 50% partially implemented and 40% planning, and the report recommends EY’s 5S framework to guide phased scaling of smart hospitals.