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Gen AI is rapidly transforming the healthcare industry. To understand the changing landscape, McKinsey has surveyed healthcare leaders since 2023 about their perspectives and approaches to gen AI (see sidebar, “Research methodology”).
About the authors
This article is a collaborative effort by Carlos Pardo Martinand Jessica Lamb, with Amine Dahab, John Jones, and Shashank Bhasker, representing views from McKinsey’s Healthcare Practice.
The latest survey, conducted in the fourth quarter of 2024, found that 85 percent of respondents—healthcare leaders from payers, health systems, and healthcare services and technology (HST) groups—were exploring or had already adopted gen AI capabilities.
Research methodology
To better understand how US healthcare leaders are thinking about gen AI use cases, McKinsey launched a research effort to gather insights from leaders in payer organizations, health systems, and healthcare services and technology (HST) groups. We surveyed stakeholders about their plans for generative AI solutions, including their level of implementation, their plans for adoption, the anticipated benefits, and ROI expectations.
These surveys are not meant to be a comprehensive or exhaustive view of all healthcare stakeholders, nor do they aim to predict stakeholders’ actions in the future. Instead, the surveys are meant to provide insights into the potential of gen AI and the progress groups have made so far. The most recent survey features responses from 150 stakeholders, of whom 29 percent are C-level executives and 37 percent are from organizations with more than $10 billion in revenue. This survey, conducted over a week in December 2024, includes 60 leaders from payer organizations, 60 from health systems, and 30 from HST groups, with follow-up interviews providing additional insights into adoption strategies and use cases. Previous surveys included 40 leaders from payer organizations, 40 from health systems, and 30 from HST groups, with C-level executives accounting for about 30 percent of each sample and organizations with greater than $10 billion in annual revenue accounting for about 40 percent.
This survey targeted 150 US healthcare leaders across subsectors and builds on similar samples of 100 leaders from the first and second quarters of 2024 and the fourth quarter of 2023. From the responses, four distinct themes emerged.
Adoption and implementation
The majority of respondents to the fourth quarter 2024 survey said their organizations have either implemented gen AI use cases or begun to develop proofs of concept. More respondents were in the implementation stage than in the proof-of-concept stage, which suggests that organizations are successfully advancing their gen AI investments. However, 15 percent of respondents had not yet started to develop proof-of-concept use cases. These respondents’ organizations could fall behind if they build out their capabilities slowly while early adopters progress their capabilities more quickly and realize the impact from their investments.
Partnerships and hyperscalers
Among respondents who are implementing gen AI, partnerships are the dominant strategy for adoption, with 61 percent saying they intend to pursue partnerships with third-party vendors to develop customized solutions as their primary strategy. In comparison, 20 percent of respondents said they intend to build gen AI capabilities in-house, and 19 percent said they intend to buy off-the-shelf solutions. Of respondents across subsectors choosing to partner, 58 percent are looking to their existing IT solution partners to fill this role, and 46 percent are also exploring partnerships with hyperscalers, driven by these vendors’ expertise in data management.
The scope of gen AI
Gen AI may create tremendous value in areas that could fundamentally improve patient experience and streamline operations to generate cost savings. Respondents across subsectors said gen AI’s greatest source of potential could be in improving administrative efficiency and clinical productivity. Many respondents also recognize opportunities in patient or member engagement and IT or infrastructure, suggesting a wide breadth of gen AI use cases.
Quantifying impact
Many of the respondents who said their organizations are progressing to implement gen AI capabilities also said they are looking to quantify the impact of their investments. Of respondents that have already implemented gen AI use cases, 64 percent reported that they anticipated or had already quantified positive ROI, suggesting high expectations for gen AI technology.
Stakeholders in the healthcare industry are seeking ways to create value and reduce costs across domains, providing ample opportunity for the use of gen AI. Despite the complexities of evolving regulation, risk compliance, and internal capability gaps, responses from this recent survey suggest that more payers, health systems, and HST organizations are progressing to implement use cases across functions. What’s more, many healthcare leaders are looking to fill the gaps in their capabilities by pursuing partnerships that allow them to bring in outside talent while maintaining flexibility and customization in AI solutions. Partnerships with hyperscalers that have data capabilities could help ensure successful implementations.
Respondents’ early use cases with gen AI have focused on improving administrative efficiency, addressing IT and infrastructure gaps, and increasing clinical productivity. As competencies mature, more use cases could become worthwhile, including external engagements with patients or members and quality-of-care use cases, which could further improve patient and member experiences overall. Leaders agree that risk management in implementing AI is important, and considering an AI governance approach will be important to advance these efforts safely.
So far, organizations that have developed their capabilities and appropriately targeted their gen AI efforts have had the most success achieving at-scale implementation. The development of gen AI remains important to success in the healthcare space, and leaders can consider how to position their organizations for the future. Successful implementations will require a value-driven strategy, strong delivery capabilities, and robust organizational management.
Carlos Pardo Martin and Jessica Lamb are partners in McKinsey’s New York office, Amine Dahab and John Jones are consultants in the Boston office, and Shashank Bhasker is an associate partner in the Chicago office.
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