Healthcare providers and payers in the U.S. are spending more money on AI, cybersecurity, and other IT investments, according to a new survey conducted by Bain & Company and KLAS Research. About 15% of providers have an AI strategy in place today, compared to only 5% last year.

Aaron Feinberg, an author of the report and a partner in Bain’s Healthcare and Life Sciences and Technology practices, told HCB News that more providers have an AI strategy this year due to rapid advancements in generative AI. Last year, many generative AI applications were in the proof-of-concept stage, but now there are a range of use cases that are showing promise in driving significant ROI.

"C-Suites, Boards and IT leaders, have recognized that they cannot afford to fall behind this wave of innovation and that a structured approach and strategy is required to make important and timely decisions on behalf of their organizations," he said.

The survey included 150 U.S. healthcare provider and payer executives — 75% of whom have indicated that they increased their IT investments over the past year. Although their focus remains on ROI, many are showing willingness to experiment with technology, especially AI and natural language processing.

They are particularly interested in AI technologies that can improve decision making and operational efficiency and deliver care and engagement. However, they are still concerned about regulatory and legal considerations, cost, and accuracy.

The survey also found that providers are focusing IT spending on IT infrastructure and services including cybersecurity, clinical workflow optimization, data platforms and interoperability, and revenue cycle management. After the Change Healthcare incident in February, many providers see the importance of strengthening cybersecurity.

"Providers and payers are interested in a range of cybersecurity technology solutions depending on the scale and maturity of their organizations," said Feinberg. "While providers and payers often purchase solutions from horizontal cyber players in the network security and content security domains, there is increasing demand for healthcare-specific tools in security and vulnerability management, identity and access management, and certain endpoint security applications, specifically around Internet of Medical Things."

Cost management and EHR integration and systems interoperability remain challenges for providers. They are making it clear that they are only interested in solutions that offer clear, rapid ROI and have proven integration.

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