Why Health Systems Must Prioritize AI Governance: Keeping Pace with Rapid Adoption Trends

According to a recent report by the Healthcare Financial Management Association (HFMA), 88% of health systems have started using Artificial Intelligence (AI). However, only 18% have a strong governance structure to guide their AI strategies. This shift emphasizes the growing role of AI in healthcare, especially in areas like finance and clinical management.

In 2025, about 70% of CFOs in health systems acknowledged having some form of AI governance. That’s a jump from just 40% in 2024. Todd Nelson from HFMA points out that good governance is essential for building trust within the community and ensures ethical AI use.

Most health systems are still in the early stages of AI adoption. Trish Rivard, the CEO of Eliciting Insights, notes that health organizations prefer to partner with trusted vendors when implementing AI solutions. Nearly 80% of health systems believe an established vendor has a clear advantage over newcomers in the AI space. This shows that familiarity and trust play vital roles in the decision-making process.

Yet, while interest in AI is on the rise, many health systems struggle with mature programs to manage their AI investments. Over 80% of systems report feeling unprepared to optimize their AI tools effectively. They often lack the resources to identify where AI can generate the best return on investment, highlighting an opportunity for vendors to step in and educate clients.

The HFMA report also outlines how health systems are preparing for AI. It includes profiles of organizations with well-established infrastructures and discusses areas of investment and expected vendor performance. The survey gathered insights from 233 health systems and qualitative data from CFOs during the second quarter of 2025.

As healthcare technology evolves, organizations that invest wisely in AI can benefit immensely. AI has the potential to streamline operations and improve patient care, making it a crucial component of modern healthcare strategies.

For more insights into how health systems are adopting AI, check out the HFMA report here.

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