Health Sector Turns To AI To Help Free Up Time For Patient Care

New Zealand healthcare providers are turning to AI to cut admin and free up time for patient care, according to a recent BNZ survey.

The survey of private healthcare providers found that two-thirds have used or considered AI tools, with note-taking AI scribes the most common. By contrast, clinical tools such as imaging and diagnostic applications are largely in the discovery or pilot stage.

“We’re seeing providers start with AI applications that can immediately reduce administrative burden on clinical staff, rather than those that directly influence patient care,” says BNZ Head of Health Thomsen McKenzie.

“This aligns with what we heard in our previous health sector reports about workforce pressures – anything that frees up time for patient care is being prioritised.”

Over 40% of respondents reported using or trialling scribes, with nearly half of those already at partial or full deployment. Administrative automation tools, such as scheduling, billing, and payroll are on a similar trajectory, with a quarter of those surveyed using or considering using them - with 36% of those already in the adoption phase.

While clinical tools remain largely in pilot, early adopters are seeing gains where AI is embedded in equipment.

At Customs Street Dentist, Dr Tony Dey uses the Dexis OP3D Pro, which has native AI capabilities. The system auto-orients X-rays, labels teeth and highlights areas of concern; for 3D scans it maps key anatomical structures like nerves to speed implant planning.

“AI is no longer a futuristic add-on; it’s quickly becoming table stakes,” he says.

“From the moment we switched the system on, it was saving time and improving the consistency of our diagnostics.”

Feedback from patients is also consistently positive, according to Dr Dey.

“It’s seen as another layer of service – they feel they are getting both a clinician and a machine working on their care.”

Digital investment accelerates amid workforce challenges

Healthcare providers are also increasing broader digital investment to manage workforce shortages. Just over 60% of respondents to the survey reported they had either invested more in digital solutions or were considering doing so.

Workforce shortages are affecting over 80% of providers (excluding sole traders), with delays or increased patient wait times and staff burnout among the most common impacts. Nearly two-thirds of respondents reported staff changes in the past year, often due to career shifts or overseas moves.

“Technology adoption as a response to labour challenges has gained material ground this year compared to last year’s report. Providers are actively seeking solutions rather than simply accepting workforce constraints,” says McKenzie.

Barriers focus on uncertainty over cost

For the respondents not yet exploring AI, the top barrier is regulatory and ethical compliance, followed by affordability. Other concerns include uncertainty about available tools, system integration, and accuracy/bias.

The findings come as the government’s AI strategy, released in July, emphasises a light-touch approach relying on existing regulations rather than new AI-specific rules.

The survey also found that healthcare providers need support in three key areas: affordable finance for technology adoption, streamlined banking processes, and advice on implementing new solutions.

BNZ’s healthcare team works across all healthcare sectors - be it primary and allied health, dental, pharmacy, specialists, veterinary, or aged care sectors - to support technology adoption and practice growth, including lending for practice buy-ins, expansions and equipment purchases.

McKenzie says this sector-specific approach reflects the different investment cycles and cash-flow pressures healthcare providers face when adopting new technology.

“Understanding these challenges helps us develop tailored financial solutions for the industry that supports innovation and boosts productivity,” he says.

Government estimates, based on Microsoft research, suggest adopting generative AI could add $76 billion to New Zealand’s economy by 2038. With healthcare representing nearly 10 per cent of GDP, productivity gains in the sector could deliver substantial benefits while helping to address workforce shortages.

For more information, please see the full report attached to this email.

Note:

The 2025 BNZ Healthcare survey was conducted in June/July 2025 among a convenience sample of BNZ business customers from the healthcare sector. Responses were received from n=95 participants in total. The sample was not controlled.

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