What's Happening?
A recent survey conducted by Black Book Research reveals that U.S. hospitals are significantly underfunding AI governance, safety, and compliance as they continue to integrate artificial intelligence into
clinical and operational workflows. The survey, which included 182 hospital leaders, found that the median budget allocation for AI governance and safety in 2026 is only 4.2%. Furthermore, only 22% of hospitals expressed high confidence in their ability to produce a complete, auditable AI explanation within 30 days for regulators or payers. The survey highlighted several challenges, including limited vendor transparency, incomplete data tracking, and unclear internal ownership, which are hindering effective AI governance.
Why It's Important?
The underinvestment in AI governance poses a significant risk to hospitals as they increasingly rely on AI technologies. Without adequate funding and robust governance frameworks, hospitals may face challenges in ensuring the safety and compliance of AI systems, potentially leading to regulatory scrutiny and operational disruptions. The lack of confidence in audit readiness across hospital types underscores the need for improved governance practices. As AI continues to play a critical role in healthcare, hospitals must prioritize governance to mitigate risks and enhance accountability, ensuring that AI systems are transparent and reliable.
What's Next?
To address these challenges, hospitals are advised to take several actions, including funding a comprehensive AI governance stack, contracting for audit rights in vendor agreements, and clarifying ownership across IT, Quality/Safety, and Compliance departments. Conducting a 30-day AI audit drill in early 2026 and remediating identified gaps are recommended steps to improve readiness. These measures aim to enhance governance practices and prepare hospitals for increased scrutiny in the coming years.
Beyond the Headlines
The survey results highlight the ethical and operational implications of AI integration in healthcare. As hospitals adopt AI technologies, they must navigate complex issues related to data privacy, algorithmic transparency, and accountability. The findings suggest a need for a cultural shift within healthcare organizations to prioritize governance and safety, ensuring that AI systems are used responsibly and ethically.
