Artificial intelligence (AI) is everywhere right now, and healthcare is no exception. From clinical decision support to virtual assistants and automated workflows, AI is often positioned as the answer to some of healthcare’s biggest challenges. But alongside the excitement comes uncertainty, responsibility, and the need for clear-eyed leadership.

In this video, Attendees at HINZ Digital Health Week 2025 reflect on where AI genuinely adds value in healthcare today, the risks it poses, and how health systems can take a pragmatic, people-first approach to adoption.

“I think AI in healthcare does have a lot of hype, as everywhere, but it also has a lot of promise and it also has a lot of risk.” – Ray Delany, Founder, CIO Studio

Understanding the risks of AI in healthcare

One of the biggest challenges with AI in healthcare is that the risks are still evolving. Unlike more established digital tools, AI systems can behave in unexpected ways, especially as they become more autonomous and adaptive.

“Part of the problem with AI, I think, is that we don’t really know what the risks are.” – Ray Delany, Founder, CIO Studio

This uncertainty makes careful decision-making essential. AI should never be adopted simply because it is new or fashionable; it must be the right solution for a clearly defined problem.

“We’ve got to be very careful going down the AI track and choosing it to make sure that it is the right solution for the problem.” – Gillian Robinson-Gibb, Founder, CEO at Hercules Health

Guidelines for responsible AI adoption in healthcare

Rather than blocking innovation outright, healthcare organisations need frameworks that guide responsible use. Clear guidelines help teams innovate safely, while still allowing flexibility as technology and understanding mature.

“We need guidelines instead of guardrails so that we’re making sure that we are guiding people through the journey and not putting big massive blockers in the way.” – Rowena Woolgar, Director at Arise Consulting.

This approach supports progress without losing sight of safety, ethics, and trust, all of which are critical in healthcare environments.

How AI can reduce administrative burden for clinicians

Where AI shows immediate promise is not in replacing clinicians, but in supporting them. Administrative burden remains one of the biggest contributors to burnout, and AI can help remove friction from everyday tasks.

“Where I see the opportunity is to focus on how we can free up clinician time to focus on the thing that they’re really good at, which is the soft stuff with patients. So, a mass of opportunity in terms of automating and lowering that kind of administration barrier.” – Harry Hawke, CEO, Managing Director at Webtools.

By starting with administrative and shared services functions, organisations can build confidence in AI before moving it closer to frontline care.

“If we’re getting good digital experiences using AI first with our admin and our shared services departments, then we’re building confidence with AI to then enable it to be in the frontline and actually interact with patients.” – Heather Phillips, Head of Corporate Affairs at Awanui Group.

Separating AI hype from real-world healthcare impact

Despite bold claims, AI has not yet delivered widespread, proven improvements in clinical outcomes. That doesn’t mean it won’t,  but it does mean expectations must be grounded in evidence.

“I think that AI has huge opportunities in some areas, particularly elements of back office work…But I think the flip side is that it’s going to be some incredible revolution. I haven’t quite seen the evidence that many of these tools are impacting clinical outcomes.” –  Dr Jono Hoogerbrug, General Practitioner and Clinical Informatics Director at Health New Zealand.

Healthcare leaders must balance optimism with realism, focusing on measurable value rather than hype.

The future of AI in healthcare: agentic AI and leadership

The next wave of AI, including agentic AI, could fundamentally reshape how healthcare systems operate. While the future isn’t fully clear, the scale of potential change is undeniable.

“Agentic AI is real, has a massive opportunity to completely change what the healthcare system is. I don’t know what that looks like. It’s both scary and exciting, and with the right leadership and the right guardrails, I think it can fundamentally change how Healthcare is delivered.” – Stella Ward, CEO at Digital Health Association (DHA)

A pragmatic path forward for AI in healthcare

AI is neither a silver bullet nor something to fear outright. Its success in healthcare will depend on strong leadership, thoughtful governance, and a relentless focus on people, both clinicians and patients. By starting where AI can deliver real, practical benefits today, particularly in administrative workflows and shared services, healthcare organisations can build trust, capability, and momentum for what comes next.

At Orion Health, we believe the future of AI in healthcare depends on strong leadership, open standards, and digital foundations that put people first. Learn more about how we support responsible, scalable innovation across health systems.

Watch What’s next for digital health in Aotearoa? to hear more perspectives from HiNZ 2025 on where digital health is heading and what health systems should be preparing for now.