How AI can be optimised for better healthcare

Modern medicine has built an extraordinary depth of knowledge. However, how much of that knowledge can reach the patient who needs it now? The answer has traditionally depended on the number and distribution of trained clinicians, the institutions in which they work, and the systems that connect them to patients. All three are difficult to expand quickly. For India, which is still expanding its healthcare capacity while its disease burden becomes more complex, the question of how far health expertise can reach is particularly consequential.

Here, Artificial Intelligence (AI) introduces a new dimension. It offers a way of taking the accumulated knowledge and making more of it available at the point of care. The change is visible across major health systems. In January 2025, the U.S. Food and Drug Administration (FDA) said it had authorised more than 1,000 AI-enabled medical devices. These include tools used in radiology, cardiology, and other areas of diagnosis. In the U.K., the NHS issued a guidance in April 2025 for the use of AI-enabled ambient scribing. By January 2026, the country was developing a national programme to support wider adoption, with early evidence suggesting that the technology could give doctors up to a quarter more time with their patients.

These examples point to a wider change. AI is moving out of innovation teams and into consultations, diagnostic workflows, and hospital operations. The real work now lies in making it dependable enough for routine use.

The economic benefits

India has its own set of challenges. Specialist care remains concentrated in larger cities, while chronic conditions require patients to be monitored over many years. Hospitals are also managing rising volumes without being able to increase clinical capacity at the same pace.

An AI tool that helps prioritise a radiology scan, alerts a care team to a deteriorating patient or supports a physician handling a complex case in a smaller city can make existing capacity work more efficiently.

The country has already built much of the digital foundation required for this shift. By May 2026, more than 100 crore health records had been linked to the Ayushman Bharat Health Accounts, twice the number recorded in February 2025. A July 2026 government update reported that the Ayushman Bharat Digital Mission (ABDM) Scan and Share service had reduced outpatient registration waits at participating hospitals from around an hour to between two and five minutes. These improvements did not require a dramatic reinvention. It came from removing friction from a familiar hospital process. AI can extend the same principle to appointment scheduling, clinical documentation, claims, inventory planning, and discharge management. Each task takes time away from care if handled poorly.

Additionally, the financial benefits from using AI is becoming harder for healthcare providers to ignore. A January 2026 McKinsey analysis estimated that applying AI across healthcare revenue-cycle operations could reduce the cost to collect by 30% to 60%. For hospitals, these gains can free resources for clinical teams, equipment and capacity. They can also reduce administrative work that contributes to staff fatigue.

There is yet another part related to the business side that receives less attention. AI can help providers offer services that were previously difficult to deliver at scale. Remote monitoring can extend care beyond discharge. Risk-based preventive programmes can identify people who need attention before symptoms become severe. Virtual specialist support can connect smaller hospitals with expertise located elsewhere. Diagnostics can be taken closer to communities, while hospitals maintain an ongoing relationship with patients managing diabetes, cardiac disease or cancer.

Judicious use

These models create revenue, but their value does not come from selling more technology. It comes from reaching patients earlier and avoiding preventable deterioration. This is also where restraint matters. A system that performs well in one hospital or population may not work equally well across India’s States, disease patterns, and care settings. Clinical validation, representative data, and human oversight also need to be seriously considered. The FDA’s September 2025 call for better methods to evaluate AI-enabled devices in real-world settings reflects a concern that every health system will have to confront. The tools’ performance at launch does not guarantee performance over time.

Healthcare does not need AI everywhere. It needs it where delays can be reduced, clinicians can make better-informed decisions, and more patients can receive appropriate care. As India marks another year of Independence, there is a larger dimension to this conversation. The economic strength of a nation ultimately rests on the capabilities of its people. Healthcare therefore belongs within the architecture of economic development. India has built considerable physical and digital infrastructure over the decades; the next phase of development will depend increasingly on the health, longevity and productivity of its population. AI can contribute by making expertise widely available and by shifting healthcare towards earlier detection and continuous management.

The economic return on AI in healthcare will be measured not by the number of systems deployed, but by the number of lives touched and its impact on human life and happiness.

Suneeta Reddy is Managing Director, Apollo Hospitals Enterprise Ltd.