Hospitals bet on AI to ease workload, boost efficiency and precision
India’s top hospital chains are deploying artificial intelligence (AI) to improve clinical efficiency and accuracy while easing pressure on doctors and nurses — even as they stress that the technology will not replace human expertise.
At the Business Today AI Summit 2025 session titled Harnessing AI in Healthcare: Innovation & Access held in Bengaluru on Wednesday, Viren Prasad Shetty, Executive Vice Chairman of Narayana Health, said AI is already transforming routine hospital operations by automating repetitive, manual tasks and freeing up medical staff to focus on patient care.
“The biggest constraint in healthcare is the huge reliance on manpower, as a lot of activity is manual and paper-intensive. AI helps eliminate repetitive, non-essential tasks and allows doctors and nurses to focus on patients,” Shetty said.
He cited radiology as a key example where AI is cutting workloads dramatically. “Image-recognition tools can scan thousands of X-rays daily and guide radiologists to focus only on the 10 per cent of cases that may show abnormalities,” he said.
Addressing concerns about the loss of the human touch, Shetty added, “The fear that technology might replace doctors has existed since the 1960s. What we are doing is giving more time back to doctors so they can spend quality time with patients.”
The discussion comes at a time when India’s private healthcare sector is in the middle of a major expansion phase, creating fertile ground for deeper AI adoption. Analysts estimate that leading private hospitals will add over 14,500 new beds by FY27, backed by ₹30,000–32,000 crore in capital expenditure. According to industry reports, the private sector currently operates about 1.1–1.5 million beds, projected to grow to nearly 1.18 million by 2028, at a CAGR of about 2.7 per cent. Yet, India still has just 16 beds per 10,000 people — well below the global average — a gap that technology could help bridge by improving operational efficiency and patient flow.
Dilip Jose, Managing Director and CEO of Manipal Hospitals, said AI’s role in healthcare is to enhance efficiency and outcomes rather than reduce costs or staff. “In manufacturing, AI boosts productivity. But healthcare is different; when you take your child with a high fever to the ER, if an AI agent receives you, it is not the same,” he said.
Jose said Manipal Hospitals uses AI in robotic surgeries and remote patient monitoring systems that predict when someone may need intensive care. “AI helps improve precision in surgeries and enables predictive monitoring outside ICUs. It optimises infrastructure and reduces patient costs,” he said, adding that “healthcare is about compassion; the doctor’s hand on your shoulder still matters.”
Meanwhile, AI usage in Indian healthcare is rising sharply. Studies show that the share of clinicians using AI tools has tripled in the past year to nearly 40 per cent, as hospitals increasingly integrate the technology into diagnostics, predictive analytics, and robotic procedures. The broader healthcare AI market, valued at around ₹1.26 lakh crore in 2024, is expected to double to ₹2.64 lakh crore by 2028, driven by private capital, digital innovation, and rising patient demand.
Dr Geetha Manjunath, Founder and CEO of NIRAMAI, highlighted how AI-based screening can save lives through early detection of breast cancer. “Around 2,000 women die every day globally from breast cancer. It is completely curable if detected early, but people do not come on time,” she said.
Her motivation to create NIRAMAI’s non-invasive, privacy-aware screening tool was deeply personal. “Two of my close relatives, aged 38 and 42, died of breast cancer. I asked myself — I have been solving global problems in AI, why can I not solve this one?” she said. The system uses thermal imaging to detect minute temperature variations, analysing over four lakh data points to identify early abnormalities. “We do not talk about AI when approaching women in rural or semi-urban areas; we talk about comfort and early detection,” she added.
Shetty said that while direct AI-related spending at hospitals remains small, technology investments are rising as AI becomes integral to operations. “Direct spending on AI might be less than one per cent, but it is embedded in everything we do,” he said. Jose added that Manipal’s approach is outcome-driven: “If it improves safety, efficiency or reduces costs, we will find the money.”
A CRISIL study also indicates that 91 hospital chains with combined revenues of about ₹64,000 crore plan to add 10,000 beds by FY26, with investments of around ₹11,500 crore — signalling that the sector’s technology investments will continue to climb alongside physical expansion.
On whether AI could replicate the skills of renowned surgeons like Dr Devi Shetty, Viren Shetty said, “Could my father operate on 50 patients simultaneously? No, unless you create an algorithm that can operate like him. AI enhances doctors, it does not replace them.”
Jose said the bigger opportunity lies in prevention and wellness. “India needs 23 lakh more hospital beds, but the money is not there. The real opportunity for AI is in prevention, early detection, awareness and cost reduction,” he said.
Both hospital leaders pointed to the emergence of 5G-enabled ambulances that transmit patient data in real time to hospitals before arrival. “We are working on ambulances where AI helps guide attendants for quicker diagnosis and intervention,” Jose said.
Shetty further said, “Even better than an AI-powered ambulance is not needing one at all. Get your check-ups done early; prevention is still the best cure.”
