Opportunities and Barriers for Startups in AI and Healthcare in Emerging Markets: The Case of India

This workshop project, carried out for Booz Allen Hamilton, aims to deepen the understanding of where artificial intelligence (AI) can create value and whether viable investment opportunities exist in the healthcare industry in India, where healthcare needs converge with accelerating digital innovation. As its digital health ecosystem and its population’s needs grow, AI emerges as a timely tool to help bridge persistent access and efficiency gaps. This report examines the opportunities and barriers for startups developing AI tools across the Indian healthcare value chain, using the World Health Organization’s Health System Building Blocks framework. Drawing on literature review, policy analysis, case studies, and expert interviews, the report evaluates AI’s potential to enhance efficiency in service delivery, workforce training, information systems, governance, and financing. Key findings highlight that while AI can address gaps in diagnostics, clinical workflows, and rural access, scaling these solutions requires tackling challenges around data interoperability, regulatory clarity, skill mismatch, and trust. The report concludes with targeted recommendations for startups, investors, and policymakers to promote sustainable and inclusive AI adoption across business-to-business (B2B), business-to-government (B2G), and business-to-consumer (B2C) markets in India.