Artificial Intelligence (AI) in Healthcare Market Size

Global Artificial Intelligence (AI) in Healthcare Market size was valued at USD 20.0 billion in 2023 and is poised to grow from USD 27.46 billion in 2024 to USD 346.79 billion by 2032, growing at a CAGR of 37.3% during the forecast period (2025-2032).

The Artificial Intelligence in healthcare market has been rapidly growing due to the ever-rising demand for improved patient care and outcomes, operational efficiency, and cost-saving efficiencies. The massive increase of healthcare data and computing power, as well as the move toward value-based care, has led to a higher demand and usage of AI in healthcare. Applications of AI are being used with increased usage in applications including diagnostic imaging, clinical decision support, drug discovery, and patient monitoring. The rapid ability to analyze vast datasets and the accuracy of AI are enabling use cases that offer early detection of diseases, personalized treatment plans, and increased efficient administration use cases. Furthermore, continued spending by both private and government organizations are helping increase the speed of introducing AI into healthcare ecosystems. 

While the market is heading in the right direction, the global artificial intelligence market has several restricting elements. There are multiple data privacy concerns, protocols and lack of interoperability with current system capabilities, and regulations related to effective adoption and implementation. Ethical considerations regarding significant changes in practice remain important for many healthcare providers and ongoing uncertainty in AI literacy among medical practitioners continues to hinder significant uptake. Cost and affordability of adopting AI algorithms; the infrastructure to develop the capability within smaller healthcare facilities is the last consideration. Nevertheless, we believe that the evolution of AI algorithms, regulatory reforms, and partnerships of technical and healthcare providers will slowly be able to address these limitations and affirm the promise of improving healthcare delivery throughout the globe in the long-term.

How is AI Transforming Clinical Documentation in Healthcare?

Artificial Intelligence (AI) is changing the game in clinical documentation, such that ambient listening technologies that use artificial intelligence are now able to more easily transcribe everything that is said during a clinician-patient encounter. Companies such as Microsoft and Ambience Healthcare and Abridge are developing ambient listening applications that use AI to transcribe clinical conversations and interactions in real-time to reduce the time clinicians spend on documentation. These technologies reduce documentation burdens and operationally alleviate physician burnout, while maximizing clinician engagement with patient care. Providers such as Stanford Health Care features or Mass General Brigham and University of Michigan Health have better outcomes overall that include less burnout, more focus on patient care, and quicker documentation because some ambient listening systems have also reduced out-of-hours charting time. Microsoft's up-and-coming Dragon Copilot intends to advance even more functionality with the ability to analyze clinician-doctor interactions, and ultimately improve clinician-patient communication.

As an example, Abridge, a start-up focusing on AI-powered medical documentation in healthcare, announces it has raised $250 million in a financing round led by Elad Gil and IVP, also with co-investors, Lightspeed Venture Partners, CVS Health Ventures, Redpoint Venture and NVentures. To illustrate how large this investment is, it is part of a larger trend and sign of confidence in AI startups which accounted for 46.4% overall of the $209 billion raised by U.S. startups in 2024. Abridge, headquartered in Pittsburgh and founded in 2018, automates clinical notes and professional records from clinical discussions, allowing doctors to concentrate on patient care while ensuring accurate documentation. Somesh Dash, General Partner at IVP, pointed out how much AI could streamline revenue cycle documentation.

How is AI Enhancing Patient Care Through Robotics?

Hospitals are beginning to deploy AI-powered robotics to engage in tasks like delivering medications and collecting items, which are often repetitive. For example, Diligent Robotics' Moxi robot is now in over 30 U.S. hospitals to help healthcare staff by taking over logistical tasks. This integration provides nurses and doctors additional time to care for patients and improves hospital overall efficiencies, ultimately offsetting the realities of shrinking labour availability and staff shortages. In February 2025, Diligent Robotics proudly announced that Moxi completed 1 million deliveries over its fleet, saving clinical staff 575,000 hours to care for patients.

Moxi's success illustrates the increasing role of humanoid robots in healthcare. Diligent Robotics has fit Moxi in currently existing health care workflows such as transporting supplies, moving laboratory specimens and working alongside staff when the facility is closed. The company claims that their robot improves operational efficiency and allows busy staffers to spend their time solely on patient care rather than doing routine transport work. Moxi can navigate complicated environments such as hospitals and has completed over 110,000 autonomous elevator rides. This shows the advanced capabilities of the robot in a real-world environment.