healthcarereimagined

Healthcare leaders are bullish about the benefits of artificial intelligence, a new report from Kyndryl shows, but many are still grappling with basic questions around IT infrastructure, cybersecurity, regulations, workforce and change management.

By Andrea Fox , Senior Editor | October 27, 2025 | 10:34 AM

To unlock the full value of artificial intelligence at scale, healthcare organizations need to modernize their IT stack, improve cybersecurity and invest in upskilling their workforce alongside their technology strategy, a new report suggests.

Drawing on data from its own AI-powered digital business platform, along with insights from some 3,700 business executives worldwide, the 2025 readiness report from infrastructure services company Kyndryl shows that healthcare (and other industries) is at a tipping point.

AI has been making inroads and soon could bring substantial ROI. But there are challenges.

For one, healthcare organizations are still falling behind on mitigating cybersecurity risks. More fundamentally, however, many are still hamstrung by a lack of alignment among C-suite leadership and key frontline staff about how to scale AI beyond initial pilot phases.

To unlock AI’s full value, organizations need to modernize their infrastructure, improve cybersecurity and invest in upskilling their workforce alongside their technology strategy, said Trent Sanders, vice president for U.S. healthcare and life sciences at Kyndryl.

“The organizations that succeed will be those that pair innovation with a culture that’s ready to embrace it,” Sanders told Healthcare IT News.

‘Seamless integration’

The majority of business leaders across industries think AI will transform day-to-day functions over the next 12 months, according to the new report.

But nearly half (49%) of businesses assessed by Kyndryl researchers are still seeing innovation delayed by a lack of technical readiness and a range of uncertainties.

“Among organizations not yet seeing positive returns from AI, 35% blame integration difficulties,” they said in the October report. “Without seamless integration, even the most advanced technologies fail to deliver value.”

But there’s some good news for healthcare: The industry is listed as one of the top performers across industries for AI-enabled automation.

“High automation density correlates with accelerated recovery times, reduced human error and enhanced scalability,” said Kyndryl researchers. “It also enables predictive analytics and supports proactive remediation strategies, and 32% of organizations experienced reduced costs due to automation and optimization in the past 12 months.”

Still, healthcare organizations continue to grapple with how to scale AI and workforce readiness – from technical skills to trust and beyond.

The Kyndryl report notes that healthcare may be particularly vulnerable to AI integration difficulties and faces specific barriers that need to be overcome before more widespread positive ROI.

‘The issue isn’t just technical’

Nearly one in five healthcare technologies are at or nearing their end, creating roadblocks to innovation, Sanders said.

“Healthcare’s complexity is both its strength and its challenge,” he explained.

“Healthcare providers are dealing with legacy systems, fragmented data environments and strict compliance requirements, all of which make AI integration more difficult than in other industries,” said Sanders.

“But the issue isn’t just technical. Integration often stalls because leadership teams aren’t aligned on how to scale AI beyond the pilot phase.”

To unlock ROI, he said he advises healthcare organizations to modernize their infrastructure and build hybrid cloud environments that support secure data flows.

“When technology and leadership move in sync,” said Sanders, “that’s when AI starts delivering real value.”

Healthcare organizations are also behind on their readiness to mitigate business risk – with just 38%, compared to 42% across industries, upgrading their infrastructure and investing in cybersecurity.

“That’s concerning, especially when 85% of healthcare organizations have experienced a cyber-related outage in the past year,” said Sanders, who noted that “agility is as much about speed as it is about resilience.”

Healthcare can improve agility, and some modernization strategies can make that happen quickly, he said.

“Many systems are outdated, and that technical debt slows everything down,” said Sanders. “Quick wins come from replacing end-of-service assets, using AI to strengthen cyber defenses and fostering a culture that supports fast, informed decision-making.”

Automation, where healthcare tends to succeed when compared to other industries, is not only reducing costs for healthcare organizations but also improving scalability.

“Automation is absolutely helping healthcare organizations cut costs, but it’s also doing much more,” Sanders said. “High automation density means fewer manual errors, faster recovery times and better scalability. In healthcare, that translates to smoother operations and improved patient care.”

But that automation “doesn’t work in isolation,” he pointed out. “The organizations seeing the biggest gains are also investing in cloud modernization and aligning their workforce around new ways of working. It’s the combination of automation plus intentional strategy that drives real impact.”

‘Growth rather than disruption’

Kyndryl’s researchers found that 84% of healthcare leaders expect AI to completely transform roles within the next 12 months, despite legacy systems and other integration challenges.

“It’s a bold prediction, and it speaks to the urgency healthcare leaders feel,” said Sanders. “That’s not just optimism; it’s a recognition that AI is no longer optional. It’s the lever for transformation.”

He acknowledged that expectations alone won’t close the gap.

The organizations that succeed in preparing their workforces “will be those that pair innovation with a culture that’s ready to embrace it,” he said.

“When employees are brought into the process, trained and empowered, AI becomes a tool for growth rather than disruption.”

Healthcare organizations can advance AI readiness despite workforce challenges – a shortage of talent and a lack of skills.

“Skilling challenges are one of the biggest hurdles healthcare organizations face,” said Sanders. “AI is evolving fast, but our workforce isn’t always equipped to keep pace; technical skills, cognitive adaptability and trust in AI are all critical, and right now, they’re in short supply.”

Aware of the gap, healthcare leaders are building trust with “transparency, ethical guidelines and involving employees in the implementation process,” he explained.

“From there, it’s about investing in upskilling and reskilling, and creating cultures that embrace change,” said Sanders. “Organizations with adaptable cultures are significantly more likely to report positive ROI on AI. That’s not a coincidence. It’s a blueprint.” 

Andrea Fox is senior editor of Healthcare IT News.
Email: afox@himss.org
Healthcare IT News is a HIMSS Media publication.

Article link: https://www.healthcareitnews.com/news/are-hospitals-and-health-systems-really-ready-ai