Indian hospitals are likely to increase spending on artificial intelligence over the next two years, even as most healthcare organizations struggle to move AI applications from pilot projects to full-scale production, according to a CII-PwC report.
The report, released as part of the CII Hospital Tech 2026 event and based on a survey of 28 senior healthcare executives conducted in August, found that 93 percent of respondents believe AI can improve efficiency, and 64 percent have already piloted AI applications. However, only 11 percent have adopted AI into manufacturing, highlighting the gap between industry interest and actual adoption.
The report says funding is not the main barrier to AI adoption. Only 7 percent of respondents cited budget constraints as the main reason for delaying AI adoption. Instead, data quality was the biggest barrier, cited by 36 percent, followed by change management (21 percent) and physician implementation (14 percent).
Healthcare organizations are now evaluating AI in a variety of functions, from patient chatbots and remote monitoring to imaging, clinical decision support, finance, claims and supply chain management. Artificial intelligence tools for imaging and diagnostics, as well as clinical decision support tools, have attracted a relatively higher level of pilot testing, but their adoption into industrial use remains limited.
The report identifies data platforms, AI governance and talent as key foundations for scaling AI in hospitals. He cautioned that a successful pilot does not necessarily translate into production success: Hospitals need to define measurable outcomes, full-scale costs and clear ownership before implementing AI into workflows.
The report says AI can help address some of India’s structural healthcare limitations by extending specialist expertise to underserved areas, reducing the administrative burden on clinical staff and improving the use of existing hospital infrastructure. Use cases include automated documentation, scheduling, discharge planning, predictive alerts, and remote monitoring.
The survey included 23 healthcare providers, three healthcare companies, one diagnostics company and one dialysis organization, with CEOs/Managing Directors making up half of the respondents.