03.3

Technology, AI and Economic Impact

Chapter 5

AI at the Heart of the Healthcare Revolution

AI has significant potential in healthcare, but its most immediate value is practical: making care delivery more efficient and more consistent. Today, that includes ambient documentation support, demand forecasting, workflow optimisation, patient routing and operational analytics. Over time, it will increasingly support earlier intervention and more proactive, longitudinal care, particularly when paired with remote monitoring and structured pathways.

Public debate often swings between hype and fear. Many people are comfortable using general-purpose AI tools for general information but remain uneasy about AI in clinical settings. A King’s College study[X] from April last year found that more than 70% of patients rejected the idea that AI could take over clinicians’ roles. The path forward is not to ignore these concerns, but to design for them using clinical governance, transparency and clear human accountability.

After the United States and China, the UK is a leader in AI-driven healthcare.

We know the NHS wants to adopt AI in healthcare as highlighted in its 10 Year Plan. The UK also has strong research, a sophisticated health system, and active pilots across diagnostics, patient management and operational efficiency. However national adoption remains patchy, embraced in some settings, absent in others. This creates a variation in experience, operational complexity, and confusion about what “good” looks like, undermining patient confidence in critical technology.

In practice, that requires:  

  • Deploy AI first on workflow (triage, scheduling, documentation, coding).
  • Use decision support to standardise pathways while clinicians retain accountability.
  • Embed privacy-preserving data practices, auditability and continuous monitoring by design.
  • Scale through shared standards so care is consistent across regions and settings.

Recommendations

  • Publish clear national guidelines on safe, clinically governed AI use.
  • Establish regulatory sandboxes for AI-testing with real-world safeguards.
  • Align health, data and telecoms standards to reduce fragmentation.
  • Incentivise UK-based testing and deployment to scale innovation.

Chapter 6

Unlocking Economic Productivity Through Better Health

Poor health has become a growing drag on economic productivity.

The rise in long-term sickness and economic inactivity is not only a healthcare challenge; it is a national competitiveness issue. In a report from January 2025, research from the McKinsey Health Institute, in collaboration with the World Economic Forum,[XI] found that providing enhanced health benefits at work could generate nearly US$12 trillion in global economic value. The IPPR’s Commission on Health and Prosperity[XII] found a £25bn hidden cost of employee sickness since 2018 due to lost productivity.

Sir Charlie Mayfield’s Keep Britain Working review (November 2025) makes the case plainly: we cannot treat workforce health as something that sits outside the practical influence of employers, healthcare providers and policymakers.

Addressing this challenge requires earlier access to support, faster pathways to treatment, and a shift from reactive care to proactive recovery. Digital healthcare is central to making that shift possible at scale. But what we really need is the trifecta of government and policy makers, employers and healthcare providers to partner for a healthier and productive nation.

Employers do have a unique role to play. They often see the impact of ill health sooner than anyone else, maintain day-to-day relationships with employees, and can move faster than overstretched public systems. Making clinically governed digital care a standard employment benefit - and integrating it into occupational health and return-to-work pathways - can reduce absence, support recovery, and prevent problems from becoming entrenched.

This also connects directly to access bottlenecks. Delayed care leads to longer time away from work, greater uncertainty for employees and managers, and avoidable escalation into crisis services. Reforming fit notes into dynamic recovery plans, supported by digital pathways from day one, would shift the focus from what someone cannot do to what helps them return safely to meaningful work. This is a win for employees, employers and the wider economy.

Recommendations

  • Reform fit notes into dynamic recovery-focused plans.
  • Encourage employer–provider partnerships for clinically governed virtual care.
  • Incentivise early intervention through policy and tax levers.
  • Embed digital healthcare within occupational health frameworks as standard.

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03.2 The New Care Relationship

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04 Action Agenda