90% of Healthcare Execs Already See Positive ROI From GenAI Investments

Healthcare firms are aggressively increasing their investments in generative artificial intelligence (GenAI), viewing it not merely as a technological upgrade but as a strategic imperative poised to deliver significant returns.

According to recent research from PYMNTS Intelligence, which polled C-suite executives at healthcare companies generating at least $1 billion in annual revenue, the sector is exhibiting strong bullishness on AI, with most already having deployed GenAI in key areas like product innovation and customer service. This push comes as GenAI rapidly reshapes industries, particularly those, like healthcare, that are heavily reliant on big data and advanced technology.

The survey indicates a widespread expectation of positive return on investment (ROI) from GenAI initiatives. Ninety percent of executives surveyed reported that their previous GenAI investments have already achieved a positive ROI, a finding noted as remarkable given the typical slow and expensive nature of technology implementation.

Companies are not just expecting returns; they are seeing them, and this success is fueling plans for further investment. Fifty-nine percent of healthcare executives specifically stated they would increase their GenAI investment in the next year, a figure higher than the 52% cross-industry average. Full embedding of GenAI across healthcare businesses is expected to take, on average, 7.4 years, aligning with the cross-industry average. Scaling up these investments is rapidly becoming essential for healthcare organizations to maintain a competitive edge.

Key findings from the report highlight the financial commitment and positive outcomes experienced by healthcare firms:

High ROI Achievement: Ninety percent of the healthcare executives surveyed reported that their previous GenAI investments have already achieved a positive ROI. This high rate of return is seen across the sector, validating the strategic focus on GenAI.

Investment Correlates With ROI: Healthcare companies invested an average of $2.7 million in GenAI implementation and services over the past 12 months. Notably, firms reporting very positive ROI from their GenAI investments spent significantly more, averaging $6.4 million, compared to $2 million for those with somewhat positive ROI and $1.5 million for those with negligible benefits. This suggests that greater investment correlates with better ROI outcomes.

Prioritized Use Cases: Approximately 6 in 10 healthcare CFOs reported their companies are already using GenAI for innovating products and services and for providing real-time, automated customer service responses (such as chatbots). Other significant areas of implementation include data visualization and reports (55%), search and access to information (55%), and workflow automation management (51%).

While deployment is high in innovation and customer-facing applications, the report notes that most healthcare firms are not yet widely deploying GenAI in high-stakes areas such as fraud detection or cybersecurity management. Despite the rapid advancement of technology, healthcare firms are advised to approach these areas cautiously and potentially focus GenAI investments elsewhere for the near future.

The research underscores that GenAI is shaking up major industries and is becoming central to healthcare operations, requiring businesses to ensure they have robust strategies in place to leverage its potential effectively.