New Report Finds 90% of Hospitals Have an AI Strategy; Up 37% from 2019

Awareness and adoption is on the rise, with executive familiarity growing to 66% and solution deployment growing to 34%

U.S.A., March 9, 2021 — A new report from Sage Growth Partners highlights soaring demand for artificial intelligence (AI) technologies within the healthcare sector heading into 2021. The newly released data builds on a 2019 study, also from Sage Growth Partners, which showcased growing understanding and use of AI-powered technologies among healthcare executives. The latest data suggests a surge in prioritization for such investments, particularly within non-clinical departments, as healthcare organizations look to meet operational needs and mend disrupted revenue cycles that are essential to the financial viability of each organization. 

Unlike other commerce sectors, healthcare has traditionally been viewed as a laggard amid the digital transformation movement. According to the 2019 study, half of hospital leaders were familiar with the concept of AI, and more than half were unable to name an AI vendor/solution. The latest study points to how rapidly awareness, adoption and implementation of these technologies have gained traction in just 18 months. The 2020 findings show:

Healthcare executives are increasingly prioritizing automation technologies in their hospitals, and they’re already seeing ROI through reduced costs:

  • 76% of respondents said automation has elevated in importance because cutting wasteful spending will help them recuperate and grow faster
  • 90% have an AI/automation strategy in place, up from 53% in Q3 2019
  • More than half (56%) reported ROIs of 2x or higher on their automation technologies

Further, executives report a heightened urgency around adoption; 75% of respondents believe strategic initiatives around AI and automation are more important or significantly more important in 2021 since the pandemic. 

Despite seeking out automation solutions and getting a strategy in place, scaling and implementation remain to be challenges: 

  • Only 7% of hospital’s AI strategies are fully operational
  • Just 6% of respondents cited having 10 or more use cases live across their organization
  • 44% of respondents cited resource constraints (e.g. not enough staff to support implementation) and difficulty identifying best processes for automation as their top two implementation challenges

“It’s incredibly promising to see the continued and growing adoption of AI within healthcare,” said Sean Lane, CEO of Olive. “AI solutions are essential pieces of infrastructure at hospitals and health systems, and we have just begun to scratch the surface. There are so many more connections to make using AI– so many more lights to shine on all of the broken healthcare processes that stand between providers and patient care.”

Olive conducted this survey in partnership with Sage Growth Partners, an independent healthcare market research, consulting and marketing firm. Survey respondents included 100  leaders of healthcare organizations with annual revenues exceeding $800M, 76% of whom were C-level executives. Survey data was collected from September 2 to December 3, 2020.

About Olive

Olive’s AI workforce is built to fix our broken healthcare system by addressing healthcare’s most burdensome issues — delivering hospitals and health systems and payers increased revenue, reduced costs, and increased capacity. People feel lost in the system today and healthcare employees are essentially working in the dark due to outdated technology that creates a lack of shared knowledge and siloed data. Olive is designed to drive connections, shining a new light on the broken healthcare processes that stand between providers delivering patient care and payers. She uses AI to reveal life-changing insights that make healthcare more efficient, affordable and effective. Olive’s mission is to unleash a trillion dollars by connecting healthcare.

Olive is improving healthcare operations today, so everyone can benefit from a healthier industry tomorrow. Learn more about Olive here.

About Sage Growth Partners

Sage Growth Partners accelerates commercial success for B2B, B2B2C, and B2C healthcare organizations through a singular focus on growth. The company helps its clients thrive amid the complexities of a rapidly changing marketplace with deep domain expertise and an integrated application of research, strategy, and marketing. Founded in 2005, Sage Growth Partners is located in Baltimore, MD, and serves clients such as Philips Healthcare, U.S. Renal Care, Quest Diagnostics, Vocera, iN2L, and Aperture.



Investing for Enterprise Impact Whitepaper

A Healthcare Executive's Guide to AI Workforce Models

Read this white paper to understand the total cost of ownership of various purchasing models for AI and automation, so you can chart the right course as you invest.

Get the White Paper

Related Articles

Learn more


Olive logo

99 E Main St,
Columbus, OH 43215

Stay up-to-date with OliveReads

Join 14,000+ other healthcare executives and subscribe to our newsletter – you’ll receive the latest Olive news and trending stories about healthcare AI and automation.