AI in Healthcare Market is expected to reach US$ 1078.42 Billion by 2034

Global AI in Healthcare Market Forecast to 2034: Key Insights

According to our latest study on "Global AI in Healthcare Market – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Deployment, Organization Size, and Geography," the AI in healthcare market size was valued at US$ 39.55 billion in 2025 and is expected to reach US$ 1078.42 billion by 2034. The AI in healthcare market is estimated to register a CAGR of 45.3% during 2026–2034. AI-driven personalized healthcare and predictive medicine are expected to act as a future AI in healthcare market trend.

The AI in healthcare market is expected to shift toward personalized healthcare and predictive medicine, representing a significant future trend. Personalized healthcare uses AI algorithms to analyze vast amounts of patient data, including electronic health records (EHRs), genetic profiles, wearable device data, and medical imaging, to tailor treatment plans to individual patients. By leveraging machine learning and deep learning techniques, AI can identify patient-specific risk factors, predict disease progression, and suggest optimized therapeutic interventions.

AI in Healthcare Market

Predictive medicine, powered by AI, enables healthcare providers to anticipate health conditions before they become critical. For instance, AI models can forecast the likelihood of chronic disease development, hospital readmissions, or adverse drug reactions. This proactive approach allows for early interventions, better resource allocation, and improved patient outcomes. Additionally, AI-powered virtual assistants and chatbots are integrated to provide personalized health guidance, medication reminders, and patient monitoring, ensuring continuous care outside clinical settings.

The adoption of AI in genomics and precision medicine is also expected to expand, enabling targeted therapies for cancer, rare diseases, and other complex conditions. AI-driven analytics will facilitate faster clinical trials, drug discovery, and decision-making in treatment plans, reducing costs and accelerating innovation. Furthermore, the integration of AI with telemedicine platforms will enhance remote diagnostics, real-time monitoring, and virtual consultations.

The future trend toward AI-driven personalized healthcare and predictive medicine is poised to transform healthcare delivery, making it more precise, proactive, and patient-centric. Healthcare providers, technology developers, and policymakers are investing in AI capabilities to meet the growing demand for efficient, data-driven, and individualized medical solutions.

Rising Strategic Investments Drive Global AI in Healthcare Market Growth

The global AI in healthcare market is witnessing accelerated growth due to increasing strategic investments by technology providers, venture capital firms, and private equity players. These investments enable healthcare organizations to adopt advanced AI solutions for predictive diagnostics, personalized treatment, patient monitoring, and operational efficiency. The infusion of capital supports the development of innovative AI software, scalable infrastructure, and cloud-based platforms, empowering hospitals, clinics, and telemedicine providers to enhance service delivery and optimize clinical workflows.

A notable example of this trend is Kore.ai's strategic growth investment in January 2026. Kore.ai, a global leader in enterprise AI and agentic solutions, secured funding led by AllianceBernstein Private Credit Investors, with continued participation from existing investors Vistara Growth, Beedie Capital, and Sweetwater Private Equity. This investment builds on Kore.ai's strong momentum and long-term investor relationships. It will support the company's next phase of growth by scaling go-to-market initiatives, deepening global customer engagement, and accelerating innovation across its agentic AI platform. Such investments highlight how financial backing can accelerate the adoption of AI technologies in healthcare, enabling providers to implement intelligent virtual assistants, predictive analytics, and automated decision-support systems at scale.

Beyond individual companies, growing investor confidence in AI technologies is encouraging research and development, industry collaborations, and regulatory-compliant solution deployment. Healthcare providers are leveraging these investments to enhance diagnostic accuracy, automate administrative tasks, and deliver patient-centric care. Overall, rising strategic investments are expanding AI adoption in healthcare, fostering innovation, and positioning AI as a critical enabler of efficiency, improved outcomes, and digital transformation is driving the AI in healthcare market growth.

Global AI in Healthcare Market: Segmental Overview

The global AI in healthcare market is segmented on the basis of component, organization size, and deployment. Based on component, the market is divided into hardware, software, and services. Based on deployment, the market is divided into cloud-based and on-premise. In terms of organization size, the AI in healthcare market is categorized into large enterprises and SMEs. The market is expected to witness tremendous growth in the coming years owing to the expanding industries, technological advancements, favorable government initiatives, and surging artificial intelligence usage in the healthcare sector.

Based on component, global AI in healthcare market is segmented into software, hardware, and services. The software segment held the largest AI in healthcare market share in 2025, driven by the increasing deployment of AI-enabled platforms across hospitals, clinics, diagnostics centers, and telemedicine services. AI software solutions are widely adopted for medical imaging analysis, predictive diagnostics, personalized treatment planning, patient monitoring, and virtual health assistance. The rising demand for cloud-based analytics, machine learning, and natural language processing tools has strengthened software adoption. As a result, the software segment continues to dominate the AI in healthcare market share, supporting large-scale digital transformation, improved operational efficiency, and enhanced patient outcomes across the global healthcare industry.

Global AI in Healthcare Market Analysis: Competitive Landscape and Key Developments

The global AI in healthcare market report highlights factors driving market growth and the key developments of prominent players. Accenture Plc, Advanced Micro Devices Inc, Google LLC, International Business Machines Corp, Intel Corp, Microsoft Corp, NVIDIA Corp, Amazon Web Services Inc, SAP SE, and SAS Institute Inc are among the prominent players profiled in the AI in healthcare market report. Market players focus on product launches, expansion, diversification, and acquisition strategies to capitalize on prevailing business opportunities.

• IBM Unveils watsonx AI Labs: In June 2025, IBM announced watsonx AI Labs, a new, developer-first innovation hub in New York City, designed to supercharge AI builders and accelerate AI adoption at scale. watsonx AI Labs connects IBM's enterprise resources and expertise with the next generation of AI developers to build breakthrough AI applications for business.
• SAS debuts new, custom AI models to bust business bottlenecks: In June 2025, SAS debuts new, custom AI models to bust business bottlenecks. Each model addresses a specific labor and time-intensive process that can drag a business down. SAS's packaged models come either ready-to-go or intended to be tailored and accelerate model training on customer data. All can quickly and easily integrate with the existing systems of organizations of all sizes.

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