Davos 2026: Healthcare braces for AI disruption, climate risks and shrinking global aid

Global healthcare is entering a new era defined by technological breakthroughs, mounting climate threats and shifting geopolitical priorities — even as financial support for health systems stagnates or declines. That was the broad takeaway from a wide‑ranging discussion with Dr Shyam Bishen, Head of Health & Healthcare at the World Economic Forum, and Suneeta Reddy, Managing Director of Apollo Hospitals with Business Today TV at the WEF Davos 2026 Summit. 

From pandemic response to digital transformation 

The COVID‑19 pandemic forced health systems to adapt rapidly. Today, the focus has shifted beyond acute pandemic response to issues like chronic disease management, digital health access and the judicious use of artificial intelligence. Suneeta Reddy highlighted how digital infrastructure such as India’s Ayushman Bharat and the Digital Health Mission has connected roughly 750 million people to care, enabling doctors to reach rural and underserved communities. The scale of health record access — now with 500 million individuals having their records digitally available — underpins this transformation. 

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AI is no longer optional but central to future care pathways, she said, underscoring AI‑powered diagnostic tools and clinical engines that can interpret symptoms and guide outcomes. Partnerships with tech firms have accelerated solutions, from cardiac risk scores to stroke prevention tools. 

Funding gaps amid rising needs 

Yet, experts warn that global investment trends are troubling. Dr Shyam Bishen noted that although development financing for health surged during COVID‑19, recent figures show a contraction — with global health development funding dropping from $50 billion to around $40 billion — even as defense budgets grow at roughly 10% annually. This shift has real consequences for underserved nations that rely on external aid to build basic healthcare infrastructure and primary care capacity. 

Climate change further complicates these pressures. Rising temperatures, extreme weather and shifting disease patterns are already affecting health outcomes and will escalate demand on systems worldwide, especially in low‑ and middle‑income countries that lack resilient care networks. The health impacts of climate change range from heat‑related illness to food insecurity and vector‑borne diseases. 

AI: opportunity and responsibility 

AI emerged as a cornerstone of future health delivery, with potential to radically expand access and efficiency. Virtual care and telemedicine powered by AI could bridge gaps for populations without traditional clinical access, especially where smartphone penetration is high. But the experts cautioned that technology shouldn’t replace human care entirely — the clinician’s judgment remains pivotal, particularly given risks of misdiagnosis or data misinterpretation.

Data privacy and governance also surfaced as critical issues. As health data becomes usable to train AI models permanently, the question of who owns this information demands new frameworks. The speakers advocated for co‑ownership between governments and private sector partners, backed by clear regulations that protect patients while enabling innovation. 

The discussion also touched on geopolitical forces shaping the global health agenda. Cuts in international aid and shifting national priorities are influencing where resources flow and who leads global health efforts. India’s health system was highlighted both for its domestic advances and as a global health destination. Medical tourism continues to grow, with patients from more than 140 countries seeking care in India because of its blend of clinical excellence and lower costs.

Watch the full interview here