New report: Health care organizations are making AI a strategic priority For health systems, outpatient providers and payers, AI offers potential for improved efficiency, economics and outcomes
By HME News Staff
Updated 9:47 AM CDT, Mon October 27, 2025
MENLO PARK, Calif. – Health care is setting the pace for enterprise artificial intelligence (AI) adoption, according to “2025: The State of AI in Healthcare” from Menlo Ventures.
Twenty-two percent of health care organizations have implemented domain-specific AI tools, a 7x increase over 2024 and a 10x increase over 2023, the report states.
Health systems lead with 27% adoption, followed by outpatient providers at 18% and payers at 14%, it states.
“What’s driving the urgency? Industry conditions and market dynamics have made AI a strategic priority,” the report states. “For providers, administrative overhead continues to erode margins and burn out clinicians, compounding post-pandemic labor shortages. Payers face rising medical costs and constrained premium growth. Pharma and biotech struggle with stagnant productivity, long R&D timelines and high costs. AI offers the potential for improved efficiency, economics, and outcomes.”
By contrast, AI adoption across the broader economy lags behind. Fewer than one in 10 companies (9%) have implemented AI, and most rely on general tools like enterprise ChatGPT instead of purpose-built solutions, according to the report.
To produce the report, Menlo Ventures, an early-stage venture capital firm that invests across AI, consumer, enterprise and health care technologies, drew on comprehensive surveys of more than 700 healthcare executives across the United States.
Read the report here.
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