The Role of AI in Addressing Healthcare’s Biggest Challenges

The healthcare industry faces mounting challenges, from workforce shortages and rising costs to complex regulatory requirements. Despite the transformative potential of AI, adoption has been slow due to financial constraints, cultural resistance, and stringent compliance regulations. 

However, forward-thinking organizations like Providence India are demonstrating how AI can enhance patient care, streamline operations, and drive financial sustainability.

In this conversation, Hari Atmakuri, Group Vice President – Engineering at Providence India, shares insights on overcoming these hurdles and harnessing AI to reshape the future of healthcare.

Can you give us an overview of Providence and its mission?

Providence is one of the largest faith-based healthcare systems in the U.S., with a legacy of over 160 years. We operate 51 hospitals and provide a range of services, from senior care to educational initiatives. Our mission has always been to serve vulnerable communities, and we invest around $2.1 billion annually in community health programs.

Providence India was set up in Hyderabad in 2020 as our Global Innovation Center. Think of it as the tech and AI hub supporting Providence’s healthcare operations in the U.S. We focus on using AI and digital solutions to enhance patient care, improve hospital workflows, and support caregivers who are often overburdened.

How is AI transforming healthcare at Providence?

AI is making healthcare more patient-centric rather than hospital-centric. We’re using AI in three major ways:

1. Clinical Operations & Patient Care: AI helps doctors make faster, more informed decisions. It optimizes workflows, predicts patient deterioration, and even assists in diagnostics.

2. Financial Sustainability: AI-driven insights are helping reduce operational costs, optimize resource use, and improve efficiency.

3. Cybersecurity & Digital Infrastructure: With sensitive patient data at stake, AI plays a huge role in ensuring security and seamless data interoperability.

Essentially, AI is taking care of the backend complexities so doctors and nurses can focus more on patients.

What are some of the biggest challenges in U.S. healthcare today?

Healthcare in the U.S. faces some serious challenges. First, there’s a huge shortage of healthcare workers, and burnout is a real issue—especially after COVID-19. Then there’s the rising cost of care, which makes access difficult for many patients. Insurance and reimbursement processes are also incredibly complex.

AI helps in multiple ways—automating administrative tasks, optimizing hospital resources, and ensuring smoother operations. For example, AI can predict staffing needs in hospitals, reducing burnout among caregivers.

AI in healthcare raises concerns about ethics and bias. How does Providence ensure responsible AI use?

That’s a great question, and one we take very seriously. AI should never compromise patient safety or fairness. We follow three guiding principles:

• Patient Safety & Privacy: Every AI solution we deploy is built with strict security and compliance measures.

• Fairness & Transparency: AI models must be unbiased and explainable. We constantly test for bias in our algorithms.

• Strategic Governance: We have an AI Executive Council that oversees all AI initiatives, including data ethics experts, CIOs, and security officers.

At the end of the day, AI is here to support doctors and caregivers, not replace them. That’s why we follow a "human-in-the-loop" approach, where AI suggestions are always reviewed by medical professionals before action is taken.

What infrastructure investments has Providence made to support AI?

Before AI can work effectively, you need a strong digital foundation. We focused on three key phases:

1. Simplify: Consolidating our systems—like electronic health records (EHR), ERP, and data platforms—into a unified infrastructure.

2. Modernize: Moving to cloud-based systems like Azure and Snowflake so we can scale AI solutions efficiently.

3. Innovate: With a modern infrastructure in place, we can now focus on developing and deploying AI-driven healthcare solutions.

Think of it like upgrading from a messy toolbox to a high-tech workstation. Now, AI can work more efficiently across the board.

How do you decide which AI use cases to prioritize? 

We don’t just build AI for the sake of it. We have dedicated councils focused on different areas—clinical outcomes, administrative processes, patient experience, and financial performance. These councils evaluate AI projects based on business priorities and strategic goals.

And of course, we always ask: Will this make life easier for patients or caregivers? If the answer is yes, we move forward.

Can you share an example of a successful AI implementation at Providence?

One great example is how we use AI for hospital operations. AI-powered predictive analytics help manage patient flow, which means reduced wait times and better bed management. We also use AI to automate administrative tasks—like processing insurance claims—so that caregivers can focus on patient care instead of paperwork.

Another area is ambient intelligence. We work with partners like GX to reduce the documentation burden for doctors. Imagine a system that listens to a doctor-patient conversation and automatically generates structured notes—this allows doctors to focus on their patients instead of typing notes during consultations.

How does Providence prioritize patient-centered care?

Traditionally, healthcare was hospital-centered—patients had to go to a hospital for everything. We’re changing that by bringing care to the patient through:

• Virtual and telehealth services that reduce unnecessary hospital visits.

• Personalized care plans that consider not just medical history but also social determinants of health.

• AI-driven hospital utilization tools that optimize emergency department capacity and staffing.

It’s about making healthcare more accessible and convenient for everyone.