Survey: Providers, payers prefer to buy rather than build AI

The build-versus-buy equation is a common conundrum in healthcare. In the AI age, providers and payers are grappling with whether to purchase a piece of technology or build it internally as the technology advances rapidly, but new research shows a tilt toward buy.

A report from venture capital firm Define Ventures, which detailed surveys and conversations with 62 senior leaders across healthcare organizations, shows that AI implementation is an immediate priority for both providers (75%) and payers (69%).

In particular, there has been a jump in AI budgets among payers, with 31% saying their budgets would increase significantly, up from 6% in 2024. Providers' AI budgets have also increased, albeit more modestly, with 35% saying their budgets will increase in 2026 compared to 31% in 2024.

With these increases, providers and payers appear to favor buying new AI technology instead of building it in most cases, according to the report.

Among payers, 54% said they would buy AI technology in most cases, up from 31% in 2024. Meanwhile, 46% plan to build AI tools internally at least half of the time in 2026.

A majority (71%) expect to buy AI technology most or all the time, down slightly from 78% in 2024. Notably, the share of leaders who said they would buy the technology every time declined from 26% in 2024 to 15% in 2026. And about 29% still plan to build their tools in half or more cases this year.

However, concerns about AI integration abound among both groups.

Change management is a key integration challenge, with 50% of payer respondents citing it as a concern this year compared to only 6% in 2024. Meanwhile, 48% of provider respondents also noted it as a challenge in 2026, up from 24% in 2024.

Among providers, concerns around integrating AI into workflows soared from 31% in 2024 to 82% in 2026.

Still, both providers (96%) and payers (92%) are open to redesigning workflows around AI.

"Taken together, buyers' appetite for organizational change is high, yet change management remains a key challenge to success," the report stated. "This could mean that buyers believe in the value of these solutions and are therefore willing to invest in change management. Alternatively, the complexity of implementation cannot be underestimated, even with AI solutions intended to ease workflow burden."

As providers and payers emphasize buying their AI technologies, return on investment has emerged as the driving factor in vendor selection, the report shows.

Most payers (83%) and providers (65%) want measurable ROI within a year, but the ROI metrics differ between the groups. For instance, 69% of payers want cost savings from their AI tools, while 56% of providers want AI that drives revenue.

The pressure to demonstrate ROI is also influencing vendor pricing models. More than half of payers (62%) expect performance-based pricing to be dominant within the next year or so. Another 38% expect enterprise Software as a Service (SaaS) models, which depend on recurring subscriptions to access software in the cloud, to be the most common pricing model.

Most providers (85%) indicate that enterprise SaaS models will be the primary pricing model in one or two years, and 42% expect performance-based models to dominate.

"The window to partner is wide open, and healthcare organizations cannot keep up with the pace of change in AI on their own," the report stated. "Innovators need to come prepared: arriving enterprise-grade, bringing a new perspective alongside domain depth, and keeping a keen eye on ROI from the beginning."

Anuja Vaidya has covered the healthcare industry since 2012. She currently covers healthcare IT and innovation, including artificial intelligence, digital healthcare, EHRs and interoperability.