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Indian hospitals to boost AI investment despite slow rollout challenges

Healthcare providers across India plan increased spending on artificial intelligence despite significant barriers to implementation, according to a new survey. Data quality issues and deployment hurdles are slowing the transition from pilot projects to live clinical operations.

LSN India · 8 September 2026

Indian hospitals to boost AI investment despite slow rollout challenges

Indian healthcare organisations are committing greater resources to artificial intelligence initiatives even as they grapple with substantial obstacles in moving experimental systems into routine clinical use, findings from a joint CII-PwC study suggest.

While nearly two-thirds of healthcare leaders surveyed have launched pilot AI programmes to test applications ranging from diagnostic support to administrative automation, only around one in nine have successfully transitioned these projects into full production environments. The gap between experimentation and operational deployment underscores the complex technical and organisational challenges facing the sector.

Data quality emerges as the primary impediment to scaling AI solutions across Indian healthcare facilities. Legacy systems, inconsistent record-keeping practices, and fragmented patient information across multiple platforms create significant barriers to training reliable algorithms and ensuring clinical accuracy. These infrastructure limitations are compounded by workforce gaps, as many healthcare facilities lack specialists capable of managing and maintaining sophisticated AI systems.

Despite these headwinds, healthcare leaders remain convinced of AI's transformative potential for improving patient outcomes and operational efficiency. This confidence is driving continued investment decisions, suggesting that institutions believe overcoming current hurdles is achievable with adequate resources and strategic planning.

Industry experts note that success will depend on concurrent investments in data standardisation, staff training programmes, and robust governance frameworks to ensure AI systems operate reliably within existing clinical workflows.