AI in Indian healthcare sector projected to reach $1.6 billion by 2025: Reports
Although the adoption of AI among healthcare providers is reasonably high at 68%, the majority of deployments (92%) are still in the proof of concept (PoC) stage.
According to a report released on Tuesday, artificial intelligence (AI) in the Indian healthcare market is expected to reach $1.6 billion by 2025 and increase at a compound annual growth rate (CAGR) of 40.6%. The healthcare sector in India is expected to reach $650 billion by 2025, rising at a CAGR of 22.5% between 2016 and 2022 and diversifying in terms of products, services, and markets, according to a Nasscom and Kantar analysis.
AI’s Impact on Indian healthcare sector
According to the report, AI technology has the potential to revolutionise the Indian healthcare sector by improving patient care across the board, streamlining operations, and boosting diagnostics.
Achyuta Ghosh, Senior Director and Head of Nasscom Insights, stated that, “AI holds transformative potential in healthcare, from predictive analytics for disease outbreaks to precision medicine tailored to genetic profiles. To fully harness this, India must invest in AI infrastructure, skilled professionals, and adaptive regulatory frameworks.”
In verticals like pharmaceutical and life science, 82% of the businesses surveyed have implemented AI on a modest scale and plan to scale up in 2024, while 12% have already included AI into their functional operations, according to the most recent Nasscom AI healthcare survey.
Although the adoption of AI among healthcare providers is reasonably high at 68%, the majority of deployments (92%) are still in the proof of concept (PoC) stage.
Hybrid Cloud Solutions
Major IT companies are implementing hybrid cloud solutions and platform-based strategies for scalable and compliant healthcare apps, per the findings.
While interest in and investment in generative AI have grown, the healthcare industry is only just beginning to use this technology; in 2023, 34% of the nation’s healthcare organisations have explored at least 1-2 GenAI use cases.
Ghosh said, “Ensuring data privacy, security, and ethical guidelines is crucial for maintaining public trust. By embracing AI, India can set a global standard for healthcare innovation, driving growth and enhancing the quality of life for millions.”
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