Healthcare AI plans hampered by spreadsheets and legacy systems

Strada research finds 84 per cent of healthcare employers still use backup systems or manual processes alongside their main HR platform

Healthcare organisations risk undermining their push into artificial intelligence because many are still relying on spreadsheets, legacy software and manual processes to manage their workforces, new research suggests.

A study by workforce technology company Strada found 84 per cent of healthcare employers continue to use backup systems, spreadsheets or older processes alongside their main human capital management platform.

Two-thirds – 66 per cent – use multiple systems to manage functions including HR, payroll, benefits and finance, while just 27 per cent have moved to a fully cloud-based HCM system.

Strada said the fragmented set-up can leave organisations with inconsistent workforce data and make it harder to build the reliable information needed for AI and automation.

It can also increase administrative work and make it more difficult for managers to get an up-to-date picture of staffing, labour costs and workforce requirements.

The findings come as healthcare providers face pressure from staff shortages, rising labour costs and growing demand for care.

Stephen Dolan, the vice president and head of Workday Professional Services at Strada, said: “Healthcare organisations are under enormous pressure to do more with less. 

“As organisations look to get more value from their Workday and broader workforce technology investments, AI has enormous potential to improve workforce planning, reduce administrative burden and help leaders make better decisions. But it can only be as effective as the data behind it.

“Our research shows many organisations are still relying on disconnected systems, spreadsheets and manual workarounds to manage their workforce. 

“That complexity makes it harder to create a single, trusted source of workforce data and limits the value organisations can realise from AI and automation.

“The next stage of workforce transformation isn’t about adding more technology. It’s about simplifying what’s already there, creating connected workforce data and giving healthcare leaders the confidence to make faster, more informed decisions.”

Strada said organisations should simplify existing systems and connect workforce data before they can get the full benefit from AI.

The company said the problem persists despite significant investment in cloud-based HR technology.

Its Workforce Possibility Report 2026 was based on independent research among 405 senior decision-makers working at organisations with more than 1,000 employees across seven international markets.

Respondents were responsible for HR, payroll and workforce operations and came from a range of sectors, including healthcare.

READ MORE: Doctors using AI before health systems set the rules. Eight-in -10 clinicians lack employer guidance as paperwork pushes artificial intelligence into everyday practice.

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