Embracing artificial intelligence (AI) is no longer a choice—it’s the need of the hour in the Indian healthcare sector.
While Indian healthcare is the country’s largest sector, it’s still behind its global peers on benchmarks.
On one hand, there’s rapid expansion (22.5%), on the other there are stubborn issues. And AI may be the optimum solution to manage it all.
According to the Nasscom-Kantar report: Advancing Healthcare in India, AI can enhance quality, affordability, and accessibility and address urgent concerns in the Indian healthcare sector.
The report sheds light on current challenges, market opportunities, and AI’s transformative potential to bridge care gaps.
Let’s deep dive and unpack the report’s fine details!
The current state of the Indian healthcare: Nasscom-Kantar report
The Indian healthcare sector is rapidly expanding at a CAGR of 22.5% and is expected to reach $650 billion by 2025.
This is fueled by increased public health spending, government and private investments, expanding medical infrastructure, and diversifying healthcare segments—telemedicine and home healthcare.
Stubborn issues like low doctor-to-patient and hospital bed-to-population ratios, lower life expectancy, and low insurance affordability and coverage are still plaguing the sector.
The report highlights that despite double public health spending in recent years, 54.8% of total health expenses are out-of-pocket.
India ranks 145th among 195 countries on the Healthcare Access and Quality (HAQ) index. It is plagued by the “Iron Triangle” of access, cost and quality.
AI’s transformative potential in the Indian healthcare sector
According to the Nasscom-Kantar report, AI applications can offer effective solutions to overcome obstacles in Indian healthcare. It believes AI adoption can instil balance in the healthcare model.
Here are some key AI applications to bridge healthcare gaps:
Personalised medicine and diagnostics
AI-powered imaging tools and data analysis can improve the accuracy of early disease detection. For instance, some of these tools can identify X-ray and MRI abnormalities effectively and help in accurate and fast treatment steps.
Moreover, predictive analytics helps personalise treatment plans by using clinical and genetic information.
Accessibility and remote care
Healthcare can become more accessible in rural, underserved, and inaccessible locations with AI-assisted telemedicine and remote monitoring tools.
Moreover, wearable devices and AI-powered chatbots can make 24/7 monitoring and consultations simpler.
Operational efficiency
Hospitals can use AI to manage patient admissions, schedule staff duty hours, and track inventory.
Furthermore, automated administrative tools and virtual health assistants can lower the workload of healthcare professionals. Thus, they can focus better on patient care.
AI adoption trends in Indian healthcare
The Indian AI market for healthcare is expected to grow in diagnostics and imaging, drug discovery and development, and predictive healthcare and disease management.
The adoption rate of AI in healthcare providers is around 68%. This includes preventive care, diagnostics, and treatment personalisation. But, most deployments, around 92%, are still in the proof of concept (PoC) phase.
The Medtech sector is new with only a 36% AI adoption rate, primarily focusing on real-time monitoring and device accuracy. Of this, 50% are in the PoC phase.
On the other hand, 82% of pharma and life sciences sector organisations have adopted AI for clinical trials and drug discovery. Nevertheless, only 12% have integrated AI into their functional processes.
AI adoption challenges
Although AI has immense potential in the healthcare sector, it’s not easy to adopt it in the Indian market due to the following:
Budget concerns
Most organisations (around 52%) don’t have enough funds for AI adoption.
Lack of talent
There aren’t enough professionals well-versed in AI to meet demands, slowing down the entire effort.
Scalability concerns
Most AI-related initiatives are still in the Proof of Concept (PoC) stage and have limited full-scale deployments.
Data complications
Organisations can’t effectively implement AI because of security concerns, data standardisation, and interoperability.
How can India adopt AI in healthcare?
The report suggests ways that can lead to AI adoption in organisations throughout the country, such as:
Strong infrastructure
It cites that India needs high-performance computing systems, cloud-based platforms, broadband connection, and standard electronic health records (EHRs). These can be the foundation of embracing AI in Indian healthcare.
Collaboration and upskilling
The report shared the importance of upskilling healthcare experts and the need for collaboration between medical experts and AI developers.
Healthcare facilities must also establish interdisciplinary teams (teams with experts from different fields) to build AI solutions and effectively meet healthcare needs.
Regulatory frameworks
Organisations must also focus on creating legal and ethical frameworks to resolve data privacy and AI liability concerns. Besides, if organisations adopt responsible AI practices, AI adoption rates and trust will increase.
Government initiatives
The government is doing its part in supporting AI adoption in the healthcare sector by introducing initiatives, such as the India AI Mission and Ayushman Bharat Digital Mission. These initiatives are focused on creating robust digital infrastructure and regulations.
Moreover, the Digital Personal Data Protection (DPDP) Act offers data privacy protection, while AI Centers of Excellence supports research and development.
Bottom line
Nasscom-Kantar report shows that despite all challenges, AI can be a breakthrough in Indian healthcare. Especially if major organisations invest wisely in infrastructure, frameworks, and skills, the sector will soon unleash the true power of AI.
While embracing AI is not a simple process, the transformation is right around the corner. With ample collaboration among the government, technology developers, healthcare organisations, and other stakeholders, Indian healthcare will soon achieve its peak vision!
