- GenAI is accelerating clinical operations, revenue cycle management, and patient experience in healthcare.
- 66 per cent of healthcare firms in India have initiated GenAI proofs of concept
- 50 per cent of pharma firms prioritise customer service, manufacturing, and supply chain for GenAI
Generative AI (GenAI) is poised to transform India’s healthcare and pharmaceutical industries, unlocking unprecedented efficiency and innovation, according to a report by EY titled, ‘How much productivity can GenAI unlock in India? The AIdea of India: 2025’.
The EY study (1) reveals a growing momentum in GenAI adoption, with 66 per cent of healthcare organisations and 50 per cent of pharmaceutical companies already initiating proof-of-concept projects. In pharma, 25 per cent of companies have taken it a step further, with GenAI applications now running in production. These advancements are reshaping traditional healthcare models, streamlining operations, and enhancing patient care.
As healthcare providers modernise their systems, GenAI is being deployed to address some of the sector’s most pressing challenges, from improving diagnostic precision and advancing telemedicine to extending access to quality care in rural areas. 56 per cent of organisations identified operations as a key priority for GenAI implementation, while 44 per cent highlighted clinical services, finance, and operations. Additionally, 33 per cent pointed to customer service and sales as areas where AI-driven transformation could deliver a significant impact. Among pharmaceutical companies, 50 per cent are focusing on customer service, manufacturing, supply chain, and operations, whereas 25 per cent are prioritising procurement.
These investments are already delivering measurable impact—44 per cent of healthcare companies reported increased revenue and customer satisfaction, while 75 per cent of pharmaceutical firms saw cost reductions and increased customer satisfaction.
Kaivaan Movdawalla, National Healthcare Leader, EY-Parthenon India, said, “GenAI is reshaping India’s healthcare landscape by driving efficiency, enhancing patient outcomes, and improving financial sustainability. With 66 per cent of healthcare firms already piloting GenAI, we are seeing significant traction in areas like medical documentation, diagnostics, and revenue cycle management. As adoption scales, GenAI will play a crucial role in expanding healthcare access, especially in underserved regions, and optimising operational efficiencies.”
Adding to it, Suresh Subramanian, National Lifesciences Leader, EY-Parthenon India said, “The pharma industry is rapidly embracing GenAI, with 50 per cent of firms already investing in or exploring AI-driven solutions. From R&D acceleration and manufacturing optimisation to supply chain resilience and commercial insights, GenAI is revolutionising operations. In fact, an EY-led GenAI transformation program for a global pharmaceutical company demonstrated a potential 14 per cent incremental growth in EBITDA, underscoring the tangible financial impact of AI adoption in the sector. As the industry scales its AI efforts, a structured approach—combining investment in infrastructure, responsible AI practices, and workforce upskilling—will be key to unlocking GenAI’s full potential.”
Boosting productivity by 30-40 per cent by 2030
The research, which analysed more than 450 roles across the industry, estimates that GenAI could drive productivity improvements of 30 per cent to 40 per cent across healthcare and pharma by 2030.
Key areas of transformation include:
- Healthcare: AI-driven automation in clinical documentation, revenue cycle management, patient engagement, and compliance could boost efficiency by 30 per cent to 35 per cent.
- Pharma: With an estimated 32 per cent to 34 per cent overall impact and 500-plus roles analysed in pharma, GenAI is poised to revolutionise operations across the lifesciences value chain. AI-powered enhancements in sales (40 per cent), supply chain (38 per cent), and production (35 per cent) could drive 35 per cent to 40 per cent productivity gains.
Real-world impact: How GenAI is being used today
The EY report outlines several high-impact use cases where GenAI is already making a difference. In healthcare, AI-powered medical documentation assistants are helping hospitals create and manage patient records more efficiently, reducing administrative burdens on doctors. Revenue cycle management solutions powered by GenAI are also streamlining billing, improving accuracy, and reducing costs. AI-driven chatbots are enhancing patient engagement by providing 24/7 support and automating routine inquiries.
In pharma, GenAI-assisted R&D tools are optimising drug discovery and accelerating regulatory submissions. Manufacturing AI solutions such as Golden Batch Analytics are improving production efficiency and product quality. AI-driven commercial operations are helping sales teams analyse market trends and deliver more targeted, data-driven recommendations to healthcare providers.
Challenges on the path to AI transformation
Despite its vast potential, GenAI adoption in healthcare and pharma is not without challenges. Data privacy and regulatory compliance remain major concerns, especially given the sensitive nature of patient information. Additionally, many healthcare organisations rely on legacy IT systems that are not built to support AI-driven applications, making infrastructure modernisation a key priority.
Another critical barrier is the shortage of skilled AI professionals who can implement and manage these advanced technologies. To fully realise GenAI’s potential, the EY report emphasises the need for strategic investments in AI talent, responsible AI governance, and strong collaborations between industry players, technology providers, and regulators.
The road ahead
GenAI is not just a technological upgrade—it is set to redefine the way healthcare and pharmaceutical companies operate, enhancing efficiencies, driving innovation, and improving patient outcomes. By overcoming adoption challenges and scaling successful pilot programs, India’s healthcare and pharma sectors can fully harness the power of AI, making the industry more agile, cost-effective, and patient-centric.
References
- The survey was designed to reflect the breadth of Indian business sectors. Survey canvassed more than ~125 C-suite executives across India. They represent diverse sectors, including Financial Services, Retail, Healthcare, Life sciences, Media and Entertainment, Technology, Automotive, Industrials and Energy.