Menlo Ventures October 21, 2025
Healthcare is setting the pace for enterprise AI adoption.
Long dismissed as a digital laggard that trailed years behind every major innovation wave, healthcare has flipped the script. The $4.9 trillion industry,1 which represents one-fifth of the U.S. economy2 but accounts for only 12% percent of software spend,3 is now deploying AI at more than twice the rate (2.2x) of the broader economy.
According to Menlo Ventures’ research, 22% of healthcare organizations have implemented domain-specific AI tools, a 7x increase over 2024 and 10x over 2023. Health systems lead with 27% adoption, followed by outpatient providers at 18% and payers at 14%. Life sciences companies are earlier in their journey but moving quickly, developing proprietary models built on decades of...
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