AI in Indian healthcare market projected to hit $1.6 billion by 2025
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The Indian healthcare sector is witnessing rapid growth in artificial intelligence (AI) integration, with the market expected to reach $1.6 billion by 2025, according to a recent report.
AI in healthcare is expanding at an impressive compound annual growth rate (CAGR) of 40.6%, indicating a significant shift towards technological advancements in the industry.
Overall, the Indian healthcare sector, projected to reach $650 billion by 2025, has been growing at a CAGR of 22.5% from 2016 to 2022. This growth encompasses a broadening range of products, services, and markets, as highlighted by a joint report from Nasscom and Kantar.
AI is poised to revolutionize healthcare in India by improving diagnostics, streamlining operational processes, and enhancing patient care across the nation. Achyuta Ghosh, Senior Director and Head of Nasscom Insights, emphasized the potential of AI in healthcare, noting that it could bring transformative changes, from predictive analytics for disease outbreaks to personalized medicine tailored to individual genetic profiles. However, he stressed the need for India to invest in AI infrastructure, skilled professionals, and adaptive regulatory frameworks to fully realize this potential.
The Nasscom AI healthcare survey revealed that AI adoption is growing in sectors such as pharmaceuticals and life sciences, with 82% of surveyed organizations implementing AI on a small scale and planning to expand in 2024. Additionally, 12% of these organizations have already integrated AI into their functional processes.
AI adoption among healthcare providers is also noteworthy, with a relatively high rate of 68%. However, most AI deployments (92%) are still in the proof of concept (PoC) phase, indicating that there is still significant room for development and scaling.
The report also noted that large tech companies are increasingly adopting platform-based approaches and hybrid cloud solutions to create scalable and compliant healthcare applications. Although there is growing interest in Generative AI, its adoption within the healthcare sector is still in the early stages. In 2023, 34% of healthcare organizations in India piloted at least one or two Generative AI use cases.
Ghosh underscored the importance of ensuring data privacy, security, and ethical guidelines to maintain public trust in AI technologies. By embracing AI, India has the potential to set a global standard for healthcare innovation, driving growth and improving the quality of life for millions across the country.