New Delhi: 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 reveals a growing momentum in GenAI adoption, with 66% of healthcare organizations and 50% of pharmaceutical companies already initiating proof-of-concept projects. In pharma, 25% 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 modernize 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% of healthcare organizations identified operations as a key priority for GenAI implementation, while 44% highlighted clinical services, finance, and operations. Additionally, 33% pointed to customer service and sales as areas where AI-driven transformation could deliver significant impact. Among pharmaceutical companies, 50% are focusing on customer service, manufacturing, supply chain, and operations, whereas 25% are prioritizing procurement.
These investments are already delivering measurable impact—44% of healthcare companies reported increased revenue and customer satisfaction, while 75% 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% 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 optimizing operational efficiencies.”
Adding to it, Suresh Subramanian, National Lifesciences Leader, EY-Parthenon India said, “The pharma industry is rapidly embracing GenAI, with 50% of firms already investing in or exploring AI-driven solutions. From R&D acceleration and manufacturing optimization to supply chain resilience and commercial insights, GenAI is revolutionizing operations. In fact, an EY-led GenAI transformation program for a global pharmaceutical company demonstrated a potential 14% 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% by 2030
The research, which analysed more than 450 roles across the industry, estimates that GenAI could drive productivity improvements of 30% to 40% across healthcare and pharma by 2030.
Key areas of transformation include:
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Healthcare: AI-driven automation in clinical documentation, revenue cycle management, patient engagement, and compliance could boost efficiency by 30% to 35%.
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Pharma: With an estimated 32% to 34% overall impact and 500-plus roles analysed in pharma, GenAI is poised to revolutionize operations across the lifesciences value chain. AI-powered enhancements in sales (40%), supply chain (38%), and production (35%) could drive 35% to 40% productivity gains.
