The data: Digital health tech funding continues to rebound in 2025, bolstered by AI deals.

• Funding reached $3.9 billion in Q3, already surpassing last year’s total, per the latest PitchBook report.
• Health tech funding reached $12.2 billion for the first nine months of 2025, edging ahead of the $12.1 billion in all of 2024.
• The number of deals increased 12% over Q2 2025.
• Average deal size rose to $7.7 million, a record high, per PitchBook. That compares with an average deal size of $6.7 million in 2024 and $5 million in 2023.
• Some of the largest funding rounds went to AI companies, including $243 million for Ambience Healthcare and $210 million for OpenEvidence.
• Ambient scribes continue to be one of the fastest-growing use cases for health tech AI, PitchBook reported.

Why it matters: AI use is already on the rise by healthcare providers and health systems, but increased funding indicates more capabilities and use cases are being explored.

• 57% of physicians use AI for pharma-related queries, according to a July report from Bain & Company.
• 65% of US hospitals use AI-based tools, per a study by University of Minnesota published in January.
• An American Medical Association survey in February found 68% of doctors think AI gives them an advantage in caring for patients.

Implications for healthcare providers: Health systems and providers will feel pressure to adopt AI-assisted tools, not just experiment with them.

For health systems, AI is shifting from pilot programs to baseline capability. That means ensuring the operational processes, technical integration, and clinician training are in place.

For healthcare professionals, AI isn’t yet essential in daily practice, but use is rising steadily. Early adopters are already benefiting from support in administrative tasks and emerging clinical insights, such as identifying care gaps or supporting clinical decision-making.