<h1>Hospitals plan 20-25% IT innovation spend rise, raising data protection, procurement, interoperability and AI liability risks</h1> Hospitals are planning a 20-25% increase in IT innovation spending over two to three years, with many already allocating substantial portions of IT budgets to digital tools; key investment areas include AI for documentation, decision support and imaging, and initiatives to improve patient experience and clinical outcomes. Legal and compliance issues highlighted include data integration, cybersecurity, workforce competency and alignment with the national digital health framework, where adoption remains partial for many providers. Recommended staged modernization raises regulatory considerations for data protection, procurement, interoperability, liability for AI-driven care and phased compliance with government standards.