AI’s Potential to Improve Healthcare and Lower Costs

Artificial intelligence is becoming a larger part of health care in Illinois as hospitals, insurers and lawmakers consider how the technology can improve patient care while also protecting patients from misuse.

In Springfield, Hospital Sisters Health System has already begun using AI in radiology to help identify lung nodules that may otherwise be missed during imaging exams ordered for unrelated medical issues. The system uses an AI-powered platform to scan radiology reports for incidental findings, flag possible concerns and alert providers so patients can receive follow-up care. HSHS officials have said the technology is being used to help catch possible lung cancer earlier.

The local use of AI comes as Illinois faces broader health care access and workforce challenges. A state rural health report said many rural counties in Illinois remain designated as shortage areas for primary care and behavioral health. The report also cited a projection from the Illinois State Medical Society that Illinois could face a shortage of 6,200 physicians by 2030.

A 2025 research brief from the Illinois Institute for Rural Affairs found that Illinois had 12,268 primary care physicians in 2022, but most were concentrated in metro areas. The report found nonmetro counties had a median of eight primary care physicians, compared with 29 in metro counties. It also found nonmetro Illinois recorded a 1 percent decline in primary care physician numbers from 2010 to 2022.

Supporters of AI in health care say those shortages are one reason the technology is likely to keep expanding. AI tools can help review medical records, flag possible findings, support clinical decision-making and reduce some administrative work for doctors, nurses and other staff. In rural or underserved areas, those tools could help local providers manage more complex cases or identify when patients need additional follow-up.

AI is also being discussed as a way to reduce paperwork and improve efficiency at a time when hospitals and clinics face staffing pressures. Nursing workforce concerns remain a major issue in Illinois, with the Illinois Nursing Workforce Center projecting a shortage of nearly 15,000 registered nurses in the state.

At the same time, Illinois lawmakers have begun setting limits on certain uses of AI in health care. In 2025, Gov. JB Pritzker signed legislation restricting the use of AI in therapy and psychotherapy services. The law was aimed at preventing AI systems from replacing licensed mental health professionals in providing therapy services.

State lawmakers have also considered legislation focused on AI and health insurance. Senate Bill 1425, known as the AI Use in Health Insurance Act, would give the Illinois Department of Insurance oversight of insurers’ use of AI systems in decisions that affect consumers. The proposal would prohibit insurers from denying, reducing or terminating benefits based solely on an AI system or predictive model and would require meaningful human review of those decisions.

Those efforts show the two sides of the debate now forming around AI in health care. Hospitals and technology developers are looking for ways to use AI to improve diagnosis, follow-up care and efficiency. Lawmakers and patient advocates are focused on transparency, privacy, safety and making sure final medical or coverage decisions are not left entirely to automated systems.

The question for Illinois is not whether AI will be used in health care, but how quickly it will expand and what rules will govern it. As providers face rising demand, workforce shortages and pressure to control costs, AI is expected to play a growing role in both clinical care and health system operations. At the same time, state policy will likely determine how much oversight is required before those tools become more common in hospitals, clinics and insurance decisions.