MARKET REPORT

AI and emerging technology in UK healthcare

Written 
22nd May 2025
 by 
Dallán Ryan
Get the report
MARKET REPORT

AI and emerging technology in UK healthcare

Written 
22nd May 2025
 by 
Dallán Ryan
Get the report
In this report
Section One

Introduction

NHS digital transformation is entering a new chapter. 

Until now, technology spending has focused predominantly on core infrastructure, electronic patient records (EPRs), clinical systems, and patient-facing applications. However, emerging technologies such as artificial intelligence (AI), mobile-first tools, and interoperability solutions are now taking centre stage.

This shift has opened the door for these emerging technology suppliers. Nearly 330 NHS emerging tech contracts, worth £505 million, are set to expire in the next 12 to 18 months. Over 89 of them end in Q1 2026 alone, creating an 83 million window for suppliers to move fast before budgets reset for the new fiscal year.

These expiries allow suppliers to create opportunities aligned with NHS digital priorities. However, to capitalise on these, suppliers must design a clear strategy addressing NHS pain points, supporting staff, and delivering real-world efficiencies.

This report provides an overview of the current NHS technology landscape, key policy drivers, and practical trends shaping the procurement of emerging technology.

Alongside our collaborators GovNet, we have designed this report to help suppliers:

  1. Track relevant procurement trends linked to emerging technology.
  2. Cut through the noise, and understand what matters.
  3. Elevate their sales strategyforbs selling into the NHS.

This report provides an overview of the current NHS technology landscape, key policy drivers, and practical trends shaping the procurement of emerging technology.

Stotles Tip

Book time with one of Stotles’ strategic advisors for more information on capitalising on the NHS’s digital transformation initiatives and kick-start your public sector sales strategy for 2025.

Section Two

The UK healthcare landscape and recent changes

In 2024, NHS tech matured. The focus is shifting from digitising paper and building patient portals to tackling deeper challenges, like waitlists, staff shortages, ageing systems, and rising costs. The priority is smarter, joined-up systems powered by data, AI, and mobile tech to improve care, boost efficiency, and plan for the long term.

This shift is being driven by both policy and investment, which aim to improve productivity, reduce clinical risk, and modernise access to services. This section explores the most significant investments in emerging technologies within the NHS.

Policy commitments indicate a clear direction

Since coming to power, the Labour government has been committed to delivering on its promises of a more digitally forward healthcare system. Some of the key initiatives that they took over include:

  • As part of NHS England's Digital Health Plan, all NHS trusts must have electronic patient records (EPRs) by March 2025. This initiative is a foundational requirement, and alongside increased funding and policy mandates for digital infrastructure and cloud, will underpin the growth of emerging technology in the NHS, from interoperability to AI.
  • Every Integrated Care System (ICS) must also implement:
    • An integrated health and care record.
    • A population health management platform.
    • Business intelligence tools to support data-led decision-making.
  • Data for research and development must be accessible through a federated network of Trusted Research Environments (TREs,) signalling the growing emphasis on safe, scalable data use in clinical innovation.

Additionally, the NHS AI Lab and AI Award programs have invested in several AI pilot projects, and there is growing policy support for using AI in diagnostics and operations. 

While emerging technology has a smaller footprint across the NHS than patient technology and IT infrastructure, once the foundations are solid, suppliers have a significant opportunity to capitalise on the next generation of digital transformation.

Funding signals a shift in momentum

Transforming a national health system at this scale requires funding, and the government is starting to deliver on their promise to drive innovation forward and support its public sector services.

In March 2024, the Spring Budget announced a £3.4 billion digital transformation fund over three years, explicitly aimed at modernising NHS infrastructure, expanding and enhancing digital access via the NHS App, and improving access to emerging technology such as AI and cybersecurity.

Following the change in government leadership, in the 2024 Autumn Budget, the Chancellor pledged over £2 billion specifically for NHS technology and digital in 2025–26, with a broader £3.1 billion increase in capital investment.

This funding supports new policy tools and frameworks, including the What Good Looks Like (WGLL) and Digital Capability Frameworks, the Unified Tech Fund, and the Digital Aspirant Scheme.

These initiatives underpin the NHS’s broader digital transformation, where centralisation will accelerate the procurement and adoption of emerging technologies across the system.

37%

The top 10 healthcare buyers account for 37% of the total contract volume.

69%

The top 10 healthcare buyers account for 69% of the total contract value.

EXPERT quote
The NHS is carefully laying the groundwork before fully diving into emerging technologies. As core systems gain stability, we’re seeing real momentum build in AI, cloud, and cybersecurity procurement. This thoughtful, measured approach shows the NHS’s dedication to balancing cutting-edge innovation with reliability and security.
Chris Callaghan
Portfolio Director HETT Show
 at 
GovNet (organisers of HETT Show)
Section THREe

Overall themes in NHS technology procurement

Over the past three years, the NHS has invested heavily in core tech, laying the foundations for new tools to deliver real value today. While this report's primary focus is to spotlight emerging technology, it’s essential to understand the established category trends that have set this foundation.

As illustrated below, we have categorised technology procurement into six broad areas alongside keywords. The categories comprise both established and emerging technology.

Established technology

Clinical and patient-facing technology: Electronic patient records (EPR), PACS imaging system, Radiology information system (RIS), Diagnostic tools, Electronic prescribing

Digital infrastructure and IT operations: Cloud infrastructure, Network connectivity, End-user device management NHS, Hardware procurement, IT Services Managed (ITSM)

Workforce, finance and back-office systems: HR and payroll software, eRostering system, Invoice processing, Staff training systems, Case management tools

Emerging technology

Cybersecurity and compliance: Cybersecurity tools, Healthcare firewalls, Endpoint security, Identity and access management, Incident response

Data, intelligence and AI: Data platform and data integration tools, Population health management software, BI and reporting tools, Predictive analytics NHS, AI diagnostics tools

Digital experience and patient engagement: NHS App features, Patient portal software, Chatbot and virtual assistants, Video consultation software, Accessibility and inclusive health technology

The chart below showcases the total contract value attributed to awards. We have identified over 4,600 contracts linked to the general procurement of technology products and services across the six categories above, worth a total contract value of £6.3 billion.

Digital infrastructure and clinical and patient-facing technology account for the largest share of spending, making up 86% of the total value of technology contracts awarded since January 2022.

This data reflects the NHS’s current priorities of addressing the basics (infrastructure) and enhancing direct patient care systems. A second phase of emerging technology is layered on top through ongoing projects across established categories to improve efficiency and experience for both staff and patients.

  • Example 1: NHS Arden & GEM CSU is implementing a Risk Stratification Tool for 3.3 million patients. It uses clinical data to predict health risks and support coordinated care. The tool leverages acute and primary care records, is rigorously tested, and updates automatically to reflect changes in patient care.
  • Example 2: North Bristol NHS Trust and Universities Hospitals Bristol & Weston are piloting AI Veye Lung Nodules software to enhance CT scan reporting for pulmonary nodules. The 12-month program, funded by SWAG Cancer Alliance, aims to improve nodule detection, measurement, and tracking. At the pilot's end, its impact will be assessed for future procurement decisions.

However, smaller categories, such as data, AI, and cybersecurity, are emerging as key areas for further growth.

It is essential to note that although significantly less spending is allocated to emerging categories, based on a top-level analysis of contract notices, many infrastructure and patient-centric initiatives still require elements of AI and other emerging technologies.

Tracking the top spenders

A relatively small group of buyers accounts for a large share of tech procurement spend. At the top, national agencies and centralised bodies play the most significant role in technology contract awards.

69%

The top 10 healthcare buyers account for 69% of the total contract value.

37%

The top 10 healthcare buyers account for 37% of the total contract volume.

NHS England was the single largest tech buyer, with a total procurement spend of nearly £2 billion across 500 contracts. During this time, they were responsible for projects related to bolstering national email and collaboration platforms and setting up a data platform to unlock the power of NHS data.

Outside of national procurement projects, NHS trusts have spent on upgrading their clinical systems, IT infrastructure, and digital patient services.

For example, Norfolk and Norwich University Hospitals NHS Trust’s £80 million EPR contract and similar deals at Sheffield Teaching Hospitals and Birmingham Women’s and Children’s Hospital ranked those trusts among the top spenders. 

By contrast, the Integrated Care Boards (ICBs) have made relatively few direct procurements in their name. Instead, many ICBs rely on delegating procurement tasks to provider trusts.

EXPERT quote
Breaking into the NHS market goes beyond just having the right tech. It’s about really understanding the system, building trust, and proving tangible value. Suppliers who tune into NHS priorities and view the relationship as a long-term partnership are the ones who truly make a difference.
Chris Callaghan
Portfolio Director HETT Show
 at 
GovNet (organisers of HETT Show)
Section FOUR

The established tech laying the groundwork for emerging categories

Three of the six key technology categories we analysed fall into this bucket. This section briefly overviews the key themes associated with the established technology.

81%

Established technology awards account for 81% of total value.

88%

Established technology awards account for 88% of total volume.

Digital infrastructure and IT operations

This is the largest spend category by far, accounting for approximately £3.18 billion in awards over the three years across 1,670 contracts.

It encompasses the “plumbing” of NHS IT, including networks, data centres/cloud, end-user devices, operating software, and IT support services. During this period, several massive infrastructure contracts inflated this category.

Strategic summary of related trends

  1. Trusts still need to upgrade hardware like PCs, laptops, and mobile devices and make network improvements, especially after the push for remote work and digital care during the pandemic.
  2. Many are moving to cloud-based systems, using providers or SaaS tools. That’s why frameworks like G-Cloud are widely used.
  3. IT support remains key, with many contracts covering managed services, service desk outsourcing, and equipment maintenance.

Clinical and patient-facing technology

Clinical and patient-facing technology accounted for approximately £2.23 billion and encompasses electronic patient records (EPRs), clinical information systems (for radiology, pathology, pharmacy), and patient-facing digital tools for care delivery.

Strategic summary of related trends

  1. Many trusts have rolled out or upgraded electronic patient record (EPR) systems to meet the national goal of universal coverage.
  2. There was also a substantial investment in specialist clinical tools, like e-prescribing, ICU monitoring, and diagnostic systems. Imaging and diagnostic IT saw some of the most significant contract wins.
  3. During the pandemic recovery, trusts signed many smaller contracts for telemedicine platforms, patient apps, and portals to support virtual care and remote monitoring.

Workforce, finance and back-office systems

This is another smaller category, with an approximate value of £160 million. It includes HR systems, payroll, rostering, finance, ERP systems, and other internal administrative technologies.

The spending here has been limited because the NHS has some large national systems that have not been re-procured recently.  Below are examples of large contracts.

Strategic summary of related trends

  1. The Electronic Staff Record (ESR), a nationwide NHS HR and payroll system covering 1.4 million staff, has been in place for years under an extended contract.
  2. Most back-office procurements were at the trust or regional level. For example, e-rostering software can schedule staff, finance systems (some trusts migrate to cloud-based ERP systems, such as Oracle or Unit4), and smaller tools to manage procurement, estates, or corporate services. 
  3. The NHS is increasing the use of technology for more innovative staffing, such as AI-driven rostering and apps that enable flexible staff deployment.

SECTION FIVE

Emerging technology trends reshaping care

Today, the NHS’s priorities translate into real projects, reflecting what is being procured. Suppliers should focus on where emerging technologies are currently used and where there is a demand for further development. 

Three technology initiatives for the NHS are highlighted below as being at the forefront for 2025.

1. AI-augmented care

AI is no longer experimental; it’s operational. In 2025, the government announced the national rollout of AI diagnostic tools to all radiography departments, backed by £15.5 million in funding. These tools detect cancer cells 2.5 times faster than clinicians, aiming to cut cancer waiting lists and reduce diagnostic backlogs. 

For example, Civil service tools like Humphrey (including Redbox, Consult, and Minute) are already streamlining meeting administration and policy drafting, and similar tools could support clinical documentation, discharge summaries, and patient communications.

EXPERT quote
The NHS is carefully laying the groundwork before fully diving into emerging technologies. As core systems gain stability, we’re seeing real momentum build in AI, cloud, and cybersecurity procurement. This thoughtful, measured approach shows the NHS’s dedication to balancing cutting-edge innovation with reliability and security.
Chris Callaghan
Portfolio Director HETT Show
 at 
GovNet (organisers of HETT Show)

2. Offline-first, mobile-enabled EPRs

Access to patient data in the community has long been challenging, particularly in remote and rural areas. This is changing with offline-capable mobile EPRs.

For example, Cambric’s Morse app, now used by NHS Orkney, enables clinicians to view and update records without a connection. This means nurses, physiotherapists, and mental health teams can work efficiently from patients' homes, even in areas with no 4G. The data syncs once connectivity is restored.

This functionality isn’t just convenient for NHS workers to be more efficient; it can transform how the NHS collects information and turns it into actionable insights. It replaces paperwork, improves data accuracy, and saves weekly staff hours.

NHS Fife has gone further, integrating Morse with Orion Health’s portal, so clinicians across hospital and community teams can access a single, unified appointment view, a real step forward for interoperability

3. Interoperability and infrastructure upgrades

While flashy tools grab headlines, the backbone of transformation lies in systems that communicate with each other, such as shared care records across ICSs becoming a national requirement.

For example, a new Tech Devices Link 4 Framework Agreement from 2025 to 2028 simplifies the procurement of devices, from tablets and laptops to specialised clinical equipment. 

A significant part of this investment in new technology for the NHS requires suppliers to demonstrate how their tools support interoperability and align with the NHS’ infrastructure strategy rather than replacing existing ones. 

EXPERT quote
Ensuring all trusts have EPRs is a critical first step… but getting the benefits from them will require further work to help organisations use them, so they can do all the good things like improve coordination between teams and integrate tools to support clinical decision making.
Tim Horton
Associate Director
 at 
The Health Foundation

The next wave of NHS tech procurement

NHS buying follows a clear pattern. To get the basics right first, then layer on innovation. 

That means every NHS buyer needs stable infrastructure and an EPR before scaling up with AI, analytics, and patient tools. Based on a review of three years of technology procurement across the NHS, we’re now seeing a wave of procurement trends that signal what’s next:

  • AI and automation: AI is on everyone’s radar, but few major contracts have landed. Once pilot projects prove a return on investment, we expect a sharp rise in AI procurement.
  • Cloud and interoperability: While cloud-based projects are included in digital infrastructure and IT operations, NHS organisations are shifting to cloud services now that this infrastructure is set up. That’s not just changing what gets bought; it’s changing how. Agile, bite-sized procurements are replacing big one-off deals.
  • Cybersecurity: Spending has been modest, but the risk isn’t. Cyber resilience is climbing up buyer agendas. Future tenders will include more demanding security requirements.
  • Data privacy and compliance: Privacy matters as many active stakeholders exist across the NHS. Tools that protect patient data, such as encryption, consent controls, and pseudonymisation, will stand out.

Considering these four key callouts, the three remaining categories analysed stood out as the most relevant areas for suppliers following emerging tech trends. These are:

  • Data, intelligence and AI.
  • Cybersecurity and compliance.
  • Digital experience and patient engagement.

Based on analysis of published contracts, these three categories comprise 19% of the total contracts awarded to technology suppliers and 12% of the total value. While this is low, emerging technology procurement is rising in the NHS.

Data, intelligence and AI

Key trends

This category, valued at approximately £187 million, includes business intelligence systems, data analytics platforms, and artificial intelligence solutions.

The NHS is often said to be becoming a more “data-driven” healthcare system. Still, aside from one major contract in this space awarded to Palantir in 2023, procurement awards have been modest compared to infrastructure or EPRs. 

Most analytics contracts, such as ICS-level population health analytics tools, data warehousing solutions for trusts, and consultancy projects to develop dashboards or AI prototypes, were smaller. 

AI in the NHS is still in its early stages of development. Pilots and niche applications (for example, AI tools for reading medical images or AI chatbots for patient inquiries) are being procured; however, these are often trials or limited deployments. 

Through the AI in Health and Care Award, the NHS AI Lab's funding has primarily been grant-based, which may not appear as procurement contracts, even though it helps companies pilot AI technology in the NHS.

Another subtheme here is data integration and interoperability. Several contracts were for integration engines, API management, and data-sharing platforms to connect systems within an ICS. Those are key enablers for AI and advanced analytics, as AI requires data.

Key contractTotal contract valueSupplier
Federated Data Platform and Associated Services£182,242,760Palantir

Buyer and supplier insights

Below is a snapshot of the most active buyers and suppliers of data, intelligence and AI during this period.

Top buyers:

  • NHS England
  • NHS South, Central and West Commissioning Support Unit
  • Department of Health and Social Care
  • Genomics England
  • NHS Business Services Authority

Top suppliers:

  • Insight Direct (UK) Ltd
  • Softcat PLC
  • Specialist Computer Centres PLC
  • Boxxe Limited
  • Clinisys Solutions Limited

Upcoming opportunities

175 data, intelligence and AI contracts worth £388 million expiring over the next two years.

Here are three large contracts coming up for renewal for suppliers to be aware of:

Contract titleExpiry quarterBuyerSupplierValue
Regulatory Intelligence Unit Software2025 Q4Nursing and Midwifery CouncilBulien LLP£108,552
Data Modelling Tool2026 Q2NHS Business Services AuthoritySandhill Consultants Limited£145,028
Data Safe Haven2026 Q3General Medical Council (GMC)Health Informatics Centre (HIC) - The University of Dundee£400,000

Cybersecurity and compliance

Key trends

This is the smallest category by contract award value at £84 million, which may be surprising given the increased risk surrounding high-profile cyber threats (e.g., the 2017 WannaCry attack that affected the NHS). 

The low spend could indicate that dedicated security solutions are bundled into larger IT projects or covered by broader service contracts. We saw contracts for security assessments, network security software, and compliance tools. Below are examples of large contracts.

Some NHS trusts have procured security operation centre (SOC) services or security information and event management (SIEM) systems, often through joint procurements at the ICS level.

One positive trend is that cybersecurity awareness in the NHS is rising. NHS England has a Cyber Security Programme, and funding is available to enhance cyber defences. For example, following the WannaCry incident, the government announced investments to improve hospitals' cybersecurity. 

More recently, NHS Digital (now part of NHS England) has offered trusts central services, including Security Operations Centre capabilities​.

Key contractTotal contract valueSupplier
Infrastructure and Security Services£7,800,000Atos IT Services

Buyers and supplier insights

Below is a snapshot of the most active buyers and suppliers of cybersecurity and compliance during this period.

Top buyers:

  • NHS England
  • NHS Resolution
  • Department of Health and Social Care
  • Genomics England
  • United Lincolnshire Hospitals NHS Trust

Top suppliers

  • Softcat PLC
  • Insight Direct (UK) Ltd
  • Phoenix Software Limited
  • MTI Technology Ltd
  • Bytes Software Services

Upcoming opportunities

83 contracts worth £37 million expire over the next two years.

Here are three large contracts coming up for renewal for suppliers to be aware of:

Contract titleExpiry quarterBuyerSupplierValue
Firewall  Solution2026 Q1NHS Arden and Greater East Midlands CSUInsight Direct (UK) Ltd£278,083
Vulnerability Management2026 Q1NHS Business Services AuthoritySapphire Technologies Limited£19,622
Cyber Assurance Services2026 Q3NHS EnglandDionach Limited£1,800,000

Digital experience and patient engagement

Key trends

While not as cutting-edge as AI, data analytics, and cyber, digital experience and patient engagement have emerged as important categories since COVID-19, amounting to £258 million over the last two years. 

This category includes technologies that interface directly with patients or the public, excluding core clinical systems. It provides patient engagement platforms, appointment scheduling systems, self-check-in kiosks, NHS websites and digital content, remote monitoring devices, and patient communication tools, such as SMS appointment reminders and chatbots. 

The NHS’s ambition to offer patients a “digital front door” has driven much of this activity. For example, many trusts procured or enhanced patient portal systems that let patients view records, schedule appointments, or communicate with clinicians online.

Telehealth and remote monitoring have also been adopted to manage long-term conditions at home. This includes contracts for solutions in diabetes management, cardiac remote tracking, and telecare for social care integration. 

The NHS App and related digital services are developed centrally. Still, trusts often procure integration services or additional modules that plug into it, such as digital triage questionnaires or specialist apps that link with the NHS login. COVID-19 accelerated many of these trends.

We can also include public-facing websites and accessibility tech in this category, as some organisations have awarded contracts to revamp their web presence or implement content accessibility tools for patients.

Key contractTotal contract valueSupplier
Digital UEC Continuous Iterations Delivery£49,286,241Accenture

Buyer and supplier insights

Below is a snapshot of the most active buyers and suppliers of digital experience and patient engagement during this period.

Top buyers

  • NHS England
  • Department of Health and Social Care
  • London Ambulance Service NHS Trust
  • NHS Business Services Authority
  • United Lincolnshire Hospitals NHS Trust

Top suppliers

  • Netcall Technology Limited
  • Insight Direct (UK) Ltd
  • ICNH Ltd
  • Softcat PLC
  • AccuRx Limited

Upcoming opportunities

70 contracts worth £79.5 million are set to expire over the next two years.

Here are three large contracts coming up for renewal for suppliers to be aware of:

Contract titleExpiry quarterBuyerSupplierValue
Automated Pharmacy Cabinets2025 Q4Frimley Health NHS Foundation TrustOmnicell UK Ltd£450,000
Online Consultation Tooling2026 Q1NHS Arden and Greater East Midlands Commissioning Support UnitAccuRx Limited£1,015,286
Learning Management System2026 Q4Southern Health NHS Foundation TrustChambury Consulting Limited£240,500
Stotles Tip

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Section SIX

Suggestions for suppliers selling into the NHS

Winning business in the NHS tech market requires more than a good product. It takes understanding and aligning the system with its unique processes and values. Here are some suggestions for suppliers:

  1. Speak to NHS priorities and outcomes: Frame solutions in language that resonates with NHS end goals and reference success stories from other NHS or similar healthcare customers. Real-world evidence carries far more weight than any specification sheet. 
  1. Build relationships and engage early: Most work can be completed for NHS procurement before the tender is published or the contract expires. Engage with relevant stakeholders early and approach buyers strategically.
  1. Leverage procurement frameworks and pre-approvals: The NHS buys through frameworks and approved lists. Adopting relevant frameworks improves opportunity creation by being where the NHS organisation procures their technology.
  1. Offer flexible pricing and show ROI: The NHS is under financial pressure, and although it is investing in technology, budget holders need to justify expenditures. Be prepared to propose creative commercial models, such as phased implementations, pilot periods, or subscription models that align costs with actual usage or benefits.
  1. Support and partnership approach: Selling to the NHS isn’t just a transaction; successful suppliers often act as partners. This entails providing robust implementation support, training for NHS staff, and prompt after-sales service. The sales cycle can also be lengthy, and delays may occur due to approvals or crises, such as winter pressures, that shift focus, so being patient and persistent is key.
  1. SME strategies: If you are a smaller company or a new entrant, consider partnering with established players to leverage their expertise and resources. Many large IT service providers look for niche partners to fulfil specific requirements.
EXPERT quote
Breaking into the NHS market goes beyond just having the right tech. It’s about really understanding the system, building trust, and proving tangible value. Suppliers who tune into NHS priorities and view the relationship as a long-term partnership are the ones who truly make a difference.
[First+Last Name]
[Job Title]
 at 
GovNet
Section SEVEN

Next steps

The NHS remains one of the most challenging yet rewarding marketplaces for technology suppliers. As Europe’s most extensive single-payer healthcare system, its scale is unmatched. With this scale comes complexity, ongoing transformation, evolving policies, and budget pressures that demand agility and deep understanding from suppliers.

Despite these challenges, the need for technology and innovation is greater than ever. To manage rising demand, clear pandemic backlogs, and achieve long-term sustainability, the NHS is turning to suppliers that deliver cutting-edge solutions, resilience, and alignment with NHS priorities. The trends and data in this report pinpoint where those opportunities are ripest.

The next step? Building a strategy and executing it. 

It’s about getting in early, proving your value, and delivering with excellence. Those who do will find a customer and a long-term partner in one of the world’s largest healthcare systems.

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