One big problem healthcare providers face today is the administrative burden. This means the large amount of time and effort spent on tasks that are not directly related to patient care. These tasks include paperwork, insurance claims, referrals, prescription approvals, billing rules, and scheduling. Studies show that up to 30% of the total healthcare costs in the U.S. come from administrative spending. About half of that spending is unnecessary or wasteful. Doctors spend about twice as much time on paperwork as they do on seeing patients. This is a main reason for burnout among physicians.
Burnout is a serious problem. More than 60% of doctors say they feel symptoms of burnout caused mostly by too much administrative work. Burnout is one of the top reasons doctors quit their jobs. Nearly half of doctors who leave say burnout from too many admin tasks is why. This issue can also affect patients. For example, nearly one in four patients say they faced delays in care because of admin problems. And 14% of patients changed their doctors because of errors with billing or insurance.
Because of these facts, cutting down on administrative work is very important for healthcare organizations. They want to work well and provide quick, patient-centered care.
Artificial intelligence, or AI, is helping reduce the problems with administrative work. The American Medical Association (AMA) calls some forms of AI “augmented intelligence.” This means AI helps human decision-making instead of replacing it. Many AI tools in healthcare are designed to assist doctors, admins, and staff in doing their jobs better.
One clear example is using AI scribes that listen and write down what happens during doctor-patient visits. At The Permanente Medical Group (TPMG), these AI scribes saved doctors about 15,791 hours of paperwork in one year from over 2.5 million patient visits. The scribes write down and summarize the talks between doctors and patients in real time. This lets doctors focus more on talking with patients. After using this tool, 84% of doctors said their communication with patients improved. Also, 82% said they felt happier at work.
The AI scribes also cut down after-hours paperwork, sometimes called “pajama time,” which reduced stress and burnout risks. Patients noticed changes too. Almost half said doctors looked at their computers less during visits. More than half said their visits were better since AI scribes were used. This shows AI can help improve how paperwork is done for both doctors and patients.
AI is also used to automate other routine tasks. These include scheduling appointments, checking insurance, managing referrals, making sure billing follows rules, and approving prescriptions. Automating these tasks helps reduce human errors, makes processes faster, and cuts down on the need for people to do data entry.
Automation even helps with cognitive tests and collecting clinical data, which used to take a lot of time and effort. For example, Yukon Neurology got 99% of patients to complete computerized cognitive tests. This saved up to four hours per patient by adding these automated tests into their workflow. This shows AI automation can save time and get patients more involved in their care.
Automation also helps fix problems with electronic medical records (EMRs). AI tools can work with EMRs to help with documentation, make data more accurate, and create smoother workflows. This lets healthcare staff spend more time on taking care of patients instead of handling complicated paperwork.
Doctors in the U.S. are starting to like AI tools more, especially because these tools reduce their paperwork. According to the AMA, the number of doctors using AI increased from 38% in 2023 to 66% in 2024. Many doctors (68%) say they see benefits from using AI compared to before.
However, some concerns still exist. Doctors want clear proof that AI tools work well. They also want clear instructions on how to use AI and transparency about what AI does in care and admin tasks. The AMA says it is important to develop AI that is fair and ethical. They also call for strong policies about doctor responsibility, data privacy, and cybersecurity risks when using AI.
Healthcare administrators and IT managers should know that successful AI use needs careful planning, training, and teamwork between doctors, leaders, and technology providers. Clear rules and open communication can help doctors trust AI and make adoption easier.
Even though AI helps a lot, putting it into daily healthcare practice can be hard. Some common problems are:
Even with these problems, healthcare groups that plan well can gain from the ways AI saves time and reduces workload.
Medical practice administrators in the U.S. have an important role in leading AI use. This is for several reasons:
By choosing AI tools like automated phone systems, ambient AI scribes, claims processing automation, and digital cognitive tests, administrators and IT leaders can improve both administrative and clinical work faster.
The AMA stresses that AI in healthcare must be made and used with responsibility, openness, and fairness. Ethical AI means telling doctors and patients about what AI does in their care and admin tasks. Being open about how AI makes decisions and uses data builds trust and keeps medical care honest.
Healthcare organizations also need to stay updated on changing policies about AI, as government and professional groups keep making new rules for AI use and liability.
In the United States, using AI in healthcare practice management offers ways to solve long-standing problems like too much paperwork, doctor burnout, and workflow delays. AI tools like ambient scribes and automation can cut down documentation time, speed up tasks, improve doctors’ well-being, and make patient visits better. However, to be successful, healthcare groups must deal with technical, operational, and ethical challenges. This needs attention and leadership from practice administrators, owners, and IT managers.
Using these AI technologies carefully can help healthcare workers focus more on patient care, cut waste, and keep skilled doctors in a hard-working healthcare system.
The AMA defines augmented intelligence as AI’s assistive role that enhances human intelligence rather than replaces it, emphasizing collaboration between AI tools and clinicians to improve healthcare outcomes.
The AMA advocates for ethical, equitable, and responsible design and use of AI, emphasizing transparency to physicians and patients, oversight of AI tools, handling physician liability, and protecting data privacy and cybersecurity.
In 2024, 66% of physicians reported using AI tools, up from 38% in 2023. About 68% see some advantages, reflecting growing enthusiasm but also concerns about implementation and the need for clinical evidence to support adoption.
AI is transforming medical education by aiding educators and learners, enabling precision education, and becoming a subject for study, ultimately aiming to enhance precision health in patient care.
AI algorithms have the potential to transform practice management by improving administrative efficiency and reducing physician burden, but responsible development, implementation, and maintenance are critical to overcoming real-world challenges.
The AMA stresses the importance of transparency to both physicians and patients regarding AI tools, including what AI systems do, how they make decisions, and disclosing AI involvement in care and administrative processes.
The AMA policy highlights the importance of clarifying physician liability when AI tools are used, urging development of guidelines that ensure physicians are aware of their responsibilities while using AI in clinical practice.
CPT® codes provide a standardized language for reporting AI-enabled medical procedures and services, facilitating seamless processing, reimbursement, and analytics, with ongoing AMA support for coding, payment, and coverage pathways.
Challenges include ethical concerns, ensuring AI inclusivity and fairness, data privacy, cybersecurity risks, regulatory compliance, and maintaining physician trust during AI development and deployment phases.
The AMA suggests providing practical implementation guidance, clinical evidence, training resources, policy frameworks, and collaboration opportunities with technology leaders to help physicians confidently integrate AI into their workflows.
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