Health systems and hospitals spent more than $1 billion on the technology in 2025, with ambient AI and coding/billing programs at the top of the shopping list. Health systems spent more than $1 billion on AI in 2025, according to research by Menlo Ventures, while another $280 million was spent through ambulatory care providers. That’s a considerable increase over 2024 spending, and while healthcare leaders are under pressure to watch the bottom line, spending is expected to increase this year. While financial and administrative programs offer more discernible ROI, many execs want to see value in clinical operations. The early front-runner is ambient Ai, which holds the potential of not only improving clinical efficiency but also tackling provider burnout and stress, which directly affects workforce costs. Executives are also spending on AI tools that can improve patient engagement, with investment in agentic AI tools that improve the digital front door. The chart below takes a look at the top five areas of AI investment by health systems in 2025. AI Spending Chart by Eric Wicklund Pillar: InnovationTags: AIbillingcodingcostsC-suitedatadata analyticsdigital healthfinancefinancialforecasting modelsHITleadershipmanagementprior authorizationrevenue cyclestrategytechnologyvalueSecondary Pillars: TechnologyCFOArticle Type: AnalysisPublished Date: Thursday, January 15, 2026Hide sidebars: Render small main image:
