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Home»AI in Healthcare»Health System Size Impacts AI Privacy and Security Concerns
AI in Healthcare

Health System Size Impacts AI Privacy and Security Concerns

January 24, 2026082 Mins Read
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Administrators at large health systems are more concerned about data and privacy breaches, according to a new survey on shadow AI in health care.

As AI tools are increasingly used Across healthcare organizations, providers and administrators share concerns related to data breaches and privacy, according to a new survey.

These concerns are well-founded. A IBM Report 2025 found that the average security breach in healthcare was more than $7.4 million and that 97% of organizations experiencing AI-related security incidents did not have appropriate AI access controls in place.

The survey commissioned by Wolters Kluwer Health asked more than 500 administrators and vendors about the unauthorized use of AI tools, known as “shadow AI,” and their general feelings toward AI solutions.1 Respondents were asked to rank the top risks related to AI tools. Not surprisingly, patient safety was the top concern for all participants. However, privacy and data breaches are also major concerns.

1. Concerns about data breaches and privacy are higher in large health systems

Among all respondents, nearly 30% ranked data breaches first or second. However, if we limit ourselves to participants from health systems with more than 25,000 employees, the statistic jumps to 57%.

When it comes to privacy, 33% of all respondents and 35% of administrators rank it as their first or second concern. Concern increases with larger health systems: up to 46% of hospital administrators with 12,000 or more employees.

2. Administrators are generally more concerned about privacy

Looking at the differences between the two groups surveyed, administrators were overall more concerned about privacy than providers. More than 20% of administrators (CEO, CMO, CIO) said it was their top concern, compared to 14% of vendors, and 37% of CFOs ranked it top.

Support mastery of AI tools with company-wide training

Secure businesses start with technology training and literacy, especially with the rise of AI tools. Solutions like secure, enterprise-grade clinical decision supportin addition to training on company-approved tools and AI Risk Policieshelp leaders educate healthcare employees about data and security risks with unauthorized AI tools.

Learn more about other survey findings and actions to take in our free white paper, “Shadow AI: A Hidden Risk to Healthcare.”

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