More than a quarter of U.S. health systems are paying for commercial AI licenses, highlighting how rapidly hospitals are investing in AI tools to address workforce shortages, operational inefficiencies and financial pressure, The Wall Street Journal reported Jan. 5.
About 27% of health systems reported paying for commercial AI licenses, triple the adoption rate across the broader U.S. economy, according to a survey by Menlo Ventures and Morning Consult cited in the Journal article.
Hospitals are among the most aggressive adopters of AI, using the technology to automate labor-intensive clinical and administrative work such as imaging documentation, patient messaging and insurance claims processing, the Journal reported. Health system leaders say the push is driven by rising patient demand, persistent staffing shortages and the need to improve efficiency as reimbursement pressures grow.
At Chicago-based Northwestern Medicine, generative AI tools introduced in 2024 are helping radiologists review imaging studies faster by drafting reports for physician review. While clinicians remain responsible for final decisions, the technology has reduced review times and helped manage growing imaging volumes, according tothe Journal.
Revenue cycle operations are another major focus. Epic launched a generative AI tool in 2024 that drafts appeal letters for denied insurance claims. About 1,000 hospitals are already using the tool, Epic told the Journal, with some health systems reporting meaningful reductions in staff time spent per denial.
New York-based Mount Sinai reported a 3% increase in overturned insurance denials after adopting similar AI-driven appeals tools, generating an estimated $12 million in additional annual revenue, the Journal reported.
Despite the rapid uptake, health systems are proceeding cautiously. The Journal detailed instances in which generative AI tools produced inaccurate information or unhelpful patient responses, prompting some hospitals to pause or limit use. Researchers have also raised concerns about overreliance on AI, including the risk that clinicians could lose diagnostic skills if tools are removed.
Still, health system leaders say AI investment is becoming increasingly difficult to avoid.
“When you think about the tsunami of need that’s coming as a society, technology is one of the only levers we have to pull,” Doug King, chief digital and innovation officer at Northwestern Medicine, told the Journal.
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