Execs prioritizing health AI, but adoption barriers persist

More than half of healthcare C-suite executives (57%) rank AI-based clinical solutions as their top technology initiative over the next two years, but 49% say appropriate use of AI is among their greatest challenges, a new survey reveals.

Conducted by Sage Growth Partners in the second quarter of 2025, the survey polled 101 health system and hospital C-suite executives about AI adoption and utilization. AI has been top-of-mind for healthcare executives in recent years. As the pace of innovation continues to grow, healthcare executives are increasingly focused on safe, responsible and effective AI adoption, supported by robust internal and external governance structures. 

The survey shows that overall, healthcare executives have high hopes for AI. A majority (83%) said AI could improve clinical decision-making, while 75% said AI can reduce operational costs by improving efficiencies. However, adoption barriers persist, with only 12% of survey respondents saying AI algorithms are robust enough to rely on. Only 13% said they have a clear strategy for integrating AI into clinical workflows.

The survey shows that most healthcare executives (68%) noted that data and privacy concerns are a significant hurdle to AI adoption. Over one-third (36%) also agreed with the statement that there is "too much bias in clinical data sets to rely on AI for clinical solutions."

Still, 67% of survey respondents said their organization is investing in AI technologies to enhance patient care. In fact, 81% believe that AI can help their organization expand home and remote patient monitoring initiatives.

Further, 66% are investing in AI to streamline administrative operations. Around 77% of executives said AI will be key in improving revenue cycle operations.

Despite these AI investments, only 10% of healthcare executives said they were aggressively pursuing AI solutions. Around 39% of executives said they are investing in very few AI solutions and taking a cautious approach, while 40% said they are actively exploring AI opportunities and beginning to implement some solutions.

"This research illustrates that health system and hospital C-suites widely recognize AI's potential but continue struggling to determine how to effectively and safely use the technology," the report states.

The survey findings align with physician perspectives on AI, as evidenced by prior research.

AMA surveys conducted in 2023 and 2024 show that physician enthusiasm about AI is rising, but they also have several concerns. The surveys show that the share of physicians whose enthusiasm for health AI exceeded their concerns jumped from 30% in 2023 to 35% in 2024.

However, survey respondents also cited data privacy and regulatory oversight concerns, noting that having a designated feedback channel (88%) and data privacy assurances (87%) are critical to AI adoption.

Anuja Vaidya has covered the healthcare industry since 2012. She currently covers the virtual healthcare landscape, including telehealth, remote patient monitoring and digital therapeutics.