The latest Barclays Business Prosperity Index shows that healthcare companies plan to increase investment in AI over the next 12 months. 

Barclays Business Prosperity Index data shows that health and social care businesses are reporting stronger demand for their products and services, as leaders turn to AI to drive efficiencies and improve clinical outcomes.

The report combined research by Opinium Research on behalf of Barclays between 21 October and 13 November of 500 business leaders and anonymised client data of around 35,000 UK businesses in health and social care. 

It found that nearly three-quarters (74% ) of business leaders in the sector reported that sales pipelines and overall demand for their products and services were stronger than average for Q3. 

Meanwhile, smaller businesses were more likely to build savings buffers. SMEs within Barclays UK Business Bank increased savings by 6.4% year-on-year in Q3, compared to a 2.4% decline among their larger counterparts in the UK corporate bank. 

Despite a slight decline in cash inflows (1.1% ), outflows declined by 2.2%, meaning net cash flow, the difference between cash coming in and going out, was up 1.1%, amid disciplined spend control.  

“It has been a challenging time for smaller health and social care businesses, with increasing cost pressures and low consumer confidence,” said Emma Palmer, Barclays UK business banking’s head of healthcare.

“This is reflected in the data, with SMEs increasing savings by more than 6% year-on-year in the last quarter, reflecting a cautious approach ahead of the Chancellor’s Autumn Budget.”

Streamline processes

Digging into the data, a large majority (86%) of leaders surveyed in the health and social care sector reported plans to increase investment in AI over the next 12 months, with nine out of ten believing that it will deliver tangible benefits for their business. 

“Looking ahead, it is encouraging to hear the ambition of business leaders to invest in AI technologies to streamline processes, reduce operating costs, and improve patient care,” said Palmer. 

AI solutions were among the highest investment priorities across the sector, with four in ten respondents reporting that AI could improve clinical outcomes. The positive impact on quality of patient care and user experience is a clear motivation for increased investment in the technology.  

Business leaders also underlined the benefits of AI to their own bottom line, with 38% saying it could improve employee wellbeing and reduce burnout. The same number said that the technology could be used to streamline processes, allowing staff to spend more time with patients, and a third of respondents said it would improve workforce retention. 

This sentiment equates to business leaders reporting an increase in AI and tech investment by a fifth over the next 12 months.