How AI Strengthens Patient Engagement Without Replacing People

Articles about AI are everywhere. Much of the credit goes to the emergence of ChatGPT and other user-friendly tools, which have triggered a seemingly sudden shift in business and culture. It’s similar to what happened with QR codes: once considered a niche tech, they became mainstream when smartphone manufacturers made scanning them as easy as taking a photo.

In reality, various forms of AI have been used in healthcare business management for more than two decades. From coding and billing to predictive analytics, revenue forecasting, and patient payment optimization, AI and machine learning have been quietly increasing efficiency and reducing costs behind the scenes.

Today, AI is helping to drive down the costs of patient interactions. This is an exciting development—but it calls for perspective. Despite the hype suggesting AI can “transform your organization overnight,” the truth is more measured. Your strategy should be, too.

A Layered Approach to AI

At my company, which has spent decades focused on patient payments, we believe AI has real power to improve engagement—from preservice to payment and beyond. But we’re taking a thoughtful approach to AI development, building on our existing capabilities and the proven solutions our customers already trust. We describe it as a layered approach, much like how we help clients transition patient engagement from paper to digital.

Rather than adopting an all-or-nothing mindset, research consistently supports layering engagement based on individual preferences and behaviors. Not everyone is ready for total digital engagement. Many patients still prefer paper—especially for billing. Others prefer a mix: text messages for appointment reminders, emails for preparation instructions, and paper for statements.

While many organizations lead with a digital-first strategy, the most effective ones still accommodate other modes of engagement based on patient preferences and behavioral data.

This layered model also offers a proven pathway to integrating AI into patient engagement. One important reason: many people are still uncomfortable with AI. Harvard Business School assistant professor Julian De Freitas, who has spent more than a decade researching AI adoption, found persistent negative perceptions. Many believe AI is “too opaque, emotionless, rigid, and independent,” and strongly prefer human interaction.

That’s why hybrid solutions matter. Patients who are open to virtual agents should be empowered to use them—it’s more efficient and cost-effective. But for those who prefer speaking to a human, AI can still play a vital role by equipping customer service representatives (CSRs) with actionable insights and personalized data. This enables human agents to offer a more informed, helpful experience—without requiring patients to interact with AI directly.

Enhancing Human Interactions with AI

A hybrid approach that blends human interaction with AI-powered intelligence leads to more meaningful conversations and better outcomes. This philosophy underpins the development of our new healthcare virtual agent, SeatMateTM.

SeatMate enhances CSR interactions by providing intelligent scripting tailored to each patient’s personal history and context. It reduces training time by enabling new representatives to be effective from day one. It also improves self-service options through conversational and empathetic chat capabilities—allowing early adopters to realize the benefits of AI quickly and confidently.

Reducing Costs Over Time

As AI adoption grows in healthcare customer support, so does the opportunity to reduce costs while improving outcomes. Organizations that use AI to personalize patient experiences tend to see higher engagement and trust. According to a recent McKinsey study published by the National Bureau of Economic Research, AI can improve outcomes and deliver 5–10% in savings.

These improvements stem from several key benefits:

• Shorter call times and faster access to help
• Real-time guidance for CSRs, including payment plan suggestions
• Stronger patient loyalty, as individuals feel understood and respected

Given the continued rise in healthcare costs, tools that can reduce expenses and improve satisfaction deserve serious attention. However, it’s important to avoid viewing AI as a panacea for all financial challenges.

Innovation, Not Illusion

When used strategically, AI can be a powerful tool—but even the most sophisticated virtual agent can’t solve every problem. That may seem obvious, but recall the “dot-com” boom. Back then, countless organizations rushed to adopt unproven digital strategies, fueled more by FOMO than thoughtful planning.

If this sounds like a cautious take on AI, it is—but not because AI isn’t valuable. It’s because AI has already been delivering value for decades. Rather than chasing the latest app or feature, healthcare organizations should focus on working with innovation partners who can scale AI thoughtfully, addressing the use cases that matter most to patients and the bottom line.