A new survey reveals that leaders are accelerating AI and digital transformation investments to drive innovation and workforce development for long-term sustainability.
Healthcare CEOs are leaning into AI and digital transformation as top strategic imperatives, even as they grapple with ongoing economic volatility and operational pressures, according to a new KPMG survey.
Of the more than 100 life sciences CEOs surveyed, 35% cited AI integration as a key challenge driving short-term decision-making, while 80% said AI remains a top investment priority despite the uncertain financial environment. Three in four leaders anticipate dedicating 10% to 20% of their budgets to AI over the next year, underscoring how central the technology has become to healthcare’s future strategy.
The push goes beyond efficiency. Executives are betting on AI to help reimagine patient care and workforce dynamics, with 71% saying their long-term strategy now focuses on retaining and retraining high-potential talent to adapt to the technology’s growing role. Nearly 70% believe workforce upskilling on AI will be one of the most significant trends shaping their organizations over the next three years.
“Healthcare CEOs are signaling a pivotal shift this year, prioritizing AI and digital transformation not just as tools for efficiency, but as catalysts for reimagining patient care and workforce strategy,” Drew Corrigan, KPMG US Healthcare Leader, said in a statement.
“The willingness to invest boldly–even amid compounding economic volatility–shows a sector ready to lead on innovation, while recognizing the critical importance of trust in the digital age. Leaders remain focused on navigating short-term challenges while remaining steadfast in their long-term strategies to ensure a resilient and agile healthcare system that can adapt to future challenges and deliver better outcomes for patients and communities.”
That dual focus on innovation and resilience extends to broader digital transformation efforts. Seventy-five percent of CEOs said electronic health records remain extremely important to their strategy, followed closely by integrated data platforms (71%), and smart hospitals (68%).
Many respondents also view digital solutions as key to tackling workforce shortages, with 74% emphasizing the need to build digital workforce capabilities and 65% highlighting automation of administrative tasks as critical.
Even as enthusiasm for AI grows, leaders remain attuned to its risks and complexities. Fifty-two percent of CEOs identified ethical concerns as a major challenge to implementation, and more than half expressed heightened concern over fraud, data privacy, and cyber threats. Still, 72% say they’re confident their organizations are moving at the right pace to keep up with AI’s rapid evolution.
For an industry under constant financial and workforce strain, healthcare CEOs appear to agree that digital transformation is a pathway to long-term sustainability and improved outcomes.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
Four out of five healthcare CEOs rank AI as a top investment priority, with most planning to allocate 10% to 20% of budgets to it next year, KPMG’s survey found.
Leaders are emphasizing workforce readiness, with 71% focusing on retaining and retraining talent for AI integration.
Despite ethical and cybersecurity concerns, 72% of CEOs are confident that their organizations are keeping pace with AI’s rapid evolution.