AI was supposed to cut health care costs. One of its first jobs was charging you more, PwC report shows

June 13, 2026 - 00:05

A new report from PwC reveals a surprising twist in the healthcare industry's embrace of artificial intelligence. Rather than cutting costs as promised, one of AI's first major applications appears to be helping providers charge patients and insurers more. The consulting firm identifies AI as one of five key factors that could push health cost growth to as high as 9% by 2027.

The report suggests that health systems are using AI tools to optimize billing codes, identify gaps in documentation, and maximize reimbursement from payers. In practice, this means AI is being deployed to flag procedures or diagnoses that might have been overlooked, leading to higher charges. While some of this reflects more accurate billing, critics argue it often results in patients facing larger out-of-pocket expenses or insurers passing on higher premiums.

PwC's analysis points to a broader trend: the technology meant to streamline operations and reduce waste is instead being leveraged to boost revenue. Other drivers of rising costs include expensive new drugs, consolidation among providers, and increased demand for services. The findings challenge the optimistic narrative that AI would automatically lower healthcare spending. Instead, the early evidence shows that without careful regulation, AI may simply become another tool for inflating an already bloated system.