AI in healthcare: Cutting through the hype to find real impact

Ray Delany
Jul 28
3 min read

Updated: Aug 4

The economist Robert Solow once famously quipped “you see computers everywhere but in the productivity statistics”. AI sceptics might want to update that phrase for 2025, but despite the considerable and often irritating hype associated with AI, there is no doubt that real benefits are being obtained right now in healthcare throughout New Zealand and Australia.

To try and separate the hype from reality we conducted a detailed investigation into what’s actually happening out there, and there’s a lot. We looked at credible sources of information and it shows that this isn’t about some theoretical future benefit, AI is already delivering. As another pundit said, “the future is already here, it’s just not very evenly distributed”.

The result of our research is now available as a free eBook. Here’s a taste of what you’ll find in it:

45% of Australian healthcare SMEs are already using AI tools, the highest adoption rate of any industry sector
82% of NZ SMEs, including healthcare providers, are experimenting with AI—well above the global average of 75%
93% of NZ businesses using AI say it's improving staff efficiency
95% report revenue benefits

This isn’t innovation for innovation’s sake. Its transformation driven by necessity—and enabled by pragmatism. The eBook showcases powerful examples of how AI is being used right now to improve outcomes:

Volpara Health (Wellington)

Their AI tool, now used in 40% of US breast screenings, supports early detection by measuring breast density—saving clinicians time and improving diagnostic consistency.

Queensland's Patient Admission Prediction Tool (PAPT)

Accurately forecasts emergency department demand with 90% accuracy, allowing hospitals to better allocate staff and reduce wait times.

Rural NSW hospitals

One AI model identifies 70% of patients likely to be readmitted within 28 days, giving clinicians a window to intervene early and reduce repeat hospitalisations.

Medical scribes are everywhere

If you’ve been to the doctor recently, chances are they’ve introduced their AI-driven medical scribe to you. My own experience? More timely and rigorous follow up on all of the stuff I rambled on about in the clinic. My GP is one of the best in the country IMO, but the AI scribe makes her even better at the details.

AI in Healthcare: Why medium-sized providers are winning

Larger providers can afford to wait. But medium-sized health organisations often face a tough mix of:

Clinician shortages
Surging patient demand
Tight budgets and rising compliance pressure

These providers can’t afford to chase hype. They need AI that delivers practical wins: fewer missed appointments, shorter queues, reduced admin, and improved patient experiences.

And they’re finding success not by trying to “transform everything”—but by solving one thing at a time.

Getting on with it

In New Zealand and Australia, the AI conversation is evolving. No longer stuck in “what if?”, health leaders are asking “what’s next?”

The most effective adopters:

Start small
Choose high-friction workflows (like scheduling, triage, or clinical notes)
Use AI to augment, not replace staff

This layered, incremental approach builds trust and delivers outcomes faster than waiting for perfect conditions.

Learn from others

The launch of our new eBook, “A Practical Guide to AI Adoption for Health Leaders in New Zealand”, is designed to equip decision-makers with the clarity and confidence to move forward.