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Healthcare IT spending is increasing each day, with Bain & Company’s survey claiming that 75% of healthcare providers are rapidly boosting their investment in artificial intelligence (AI), cybersecurity and other IT areas. What initially began as a temporary response during the pandemic has now transformed into a defining characteristic of next-generation healthcare, fueled by the rapid integration of generative AI technologies.
With spending in this sector projected to witness a CAGR of 15.4% from 2024 to 2031, healthcare IT has emerged as a highly attractive investment opportunity for stock market players.
Global IT Spending in Healthcare
Image Source: Verified Market Research
Among other modalities, the convergence of AI and healthcare has taken a major leap forward in 2025. Venture capitalists and institutional investors are shifting capital into health tech with a laser focus on platforms that combine clinical data, imaging, genomics, and real-world evidence.
One of the most talked-about beneficiaries of this trend is Tempus AI TEM, with its stock up 30% year to date. While revolutionizing precision oncology and personalized care through its proprietary AI-based platform, the company is integrating multi-modal data (genomics, pathology, radiology and EMRs) to guide clinical decisions. In 2025, following its significant investment in Deep 6 AI and new partnerships with a number of health systems, Tempus AI has expanded its footprint in both oncology and rare disease analytics.
However, Tempus AI is not the only player to attract investor attention. Backed by accelerating innovation, increased FDA clearances and growing healthcare cost concerns, AI-driven healthcare companies like Butterfly Network BFLY and Health Catalyst HCAT have the qualities to emerge as the next big players.
Digital Transformation to Accelerate in 2025
Healthcare is catching up with other industries in terms of going digital. Though hospitals still use outdated systems like fax machines and manual data entry, Deloitte claims that in 2025, 70% of leaders plan to invest in digital tools, and 60% want to upgrade core technologies like EMRs and ERP software. About 90% of executives expect digital technologies to speed up in 2025, with half predicting major changes.
Cybersecurity is another critical area of focus in 2025. As digital adoption accelerates, so does the risk of cyber threats. Recognizing that future attacks are not a possibility but a near certainty, 78% of executives are prioritizing cybersecurity enhancements in 2025.
Deloitte suggests that generative AI is already proving its value for a substantial portion of organizations, with more than 40% reporting significant-to-moderate return on investment. Meanwhile, 37% say it’s too early to tell, which indicates that many companies are still in the early stages of implementation or evaluation.