AI Is Modernizing Canadian Healthcare. Legacy Tech Is Undermining It

Canada’s healthcare system is embracing emerging technologies like artificial intelligence (AI) at an impressive pace. From automating patient records to assisting diagnostics, AI is beginning to reshape how care is delivered and managed. But while there is clear momentum on the surface, deeper systemic challenges remain, particularly the reliance on outdated digital infrastructure.

According to SOTI’s new global report, “Healthcare’s Digital Dilemma: Calculated Risks and Hidden Challenges Exposed,” 87% of Canadian healthcare IT leaders report using AI in patient care. Yet nearly three-quarters (71%) of these organizations are still operating with legacy systems that hinder integration, limit scalability, and heighten cybersecurity vulnerabilities. The challenge before us isn’t whether we can innovate, it’s whether we’re investing in the foundations needed to sustain that innovation.

The Paradox of Progress

Canada’s healthcare sector is undergoing meaningful digital change. Between 2024 and 2025, the percentage of organizations using AI in patient care jumped from 72% to 87%. A growing number (68%) now apply AI to update patient records, more than reported in peer countries such as the US, Mexico, or Italy.

AI is also being used to diagnose medical conditions, analyze patient data, and personalize treatment plans. In fact, 52% of Canadian healthcare organizations now utilize AI for administrative purposes, a significant increase from 11% the previous year. These technologies are not theoretical; they are delivering real, measurable improvements in efficiency and patient outcomes.

But despite this impressive front-end transformation, the back end tells a different story. Outdated infrastructure remains deeply entrenched. In Canada, 99% of organizations report challenges related to legacy systems, including difficulty integrating IoT and telehealth devices. These systems are struggling to support real-time data sharing, remote device management, and cybersecurity protections that modern healthcare demands.

Systemic Risks from Legacy Technology

The reliance on legacy systems isn’t just slowing progress; it’s actively compromising patient care and data security. According to our research, 73% of Canadian healthcare organizations experience frequent technical issues and downtime. These disruptions directly affect the timeliness and quality of care.

Moreover, 51% of Canadian IT decision-makers say their outdated systems make their networks more vulnerable to attack, and 88% stated that they have experienced one or more security incidents in the past 12 months, one of the highest rates globally. As data breaches and ransomware attacks become more frequent, the risks to patient privacy and safety grow more severe.

The inability to manage or support new devices remotely further compounds the problem. Nearly half of Canadian organizations report they cannot deploy or maintain critical devices due to infrastructure limitations. The result? IT teams spend more time fixing basic technical issues and less time driving strategic initiatives that improve care.

A Vision for Scalable, Secure Innovation

To modernize Canada’s healthcare system, we must reframe IT infrastructure as essential health infrastructure, not a back-office concern. A resilient digital backbone is crucial for ensuring high-quality care, enabling real-time data access, facilitating secure information sharing, and integrating the increasing number of connected medical devices.

This requires moving beyond piecemeal upgrades toward comprehensive digital management strategies that consider the full lifecycle of devices and systems. For example, while basic Mobile Device Management (MDM) solutions have served organizations in the past, today’s complex environment requires more integrated approaches that support proactive maintenance, flexible scaling, advanced data analytics and increased automation.

New tools and frameworks, such as a suitable Enterprise Mobility Management (EMM) solution, can help address inefficiencies by enabling centralized control, secure configuration, and better visibility across diverse devices and workflows. When implemented with clear standards and human oversight, these systems allow clinicians and IT teams to spend less time resolving preventable tech issues and more time focused on care delivery and innovation.

What Canada Must Do Now

No one solution or vendor can solve these challenges alone. To bridge the gap between innovation and infrastructure, bold leadership and cross-sector collaboration will be essential. Here’s what key stakeholders must do:

• Government: Allocate funding to accelerate the replacement of legacy healthcare systems. Establish national standards for interoperability and cybersecurity and incentivize digital modernization through grants or tax credits.
  
• Healthcare Providers: Conduct comprehensive IT audits to identify infrastructure vulnerabilities and identify software/hardware solutions needed to deliver improved healthcare, efficiency and security. Transition from reactive IT support to proactive strategies.
  
• Industry: Work closely with healthcare institutions to understand the challenges and design scalable, cost-effective technology solutions that address healthcare’s unique demands. Share industry best practices to assist in planning long-term digital strategies.
  
• Academia and Training Institutions: Equip future healthcare personnel and IT professionals with the digital skills they’ll need. Embed infrastructure literacy, cybersecurity, and digital health operations into the curriculum. 
  
• Entrepreneurs and Innovators: Be part of the conversation to understand design and build tools that integrate cleanly with existing systems, support real-world workflows, and reduce complexity for end users.
  
  

A Sustainable Path Forward

Canada’s healthcare system is on the verge of a breakthrough, but that breakthrough depends on what we do next. The digital tools are here. The expertise is here. What’s needed now is the infrastructure to support them and the leadership to make modernization a national priority.

By investing in secure, scalable, and integrated IT systems, we can protect patient data, empower frontline workers, and ensure our healthcare system is equipped to meet the challenges of tomorrow. This isn’t just a tech issue; it’s a public health imperative.

Let’s not allow the promise of AI and digital innovation to be derailed by outdated systems. The future of healthcare is mobile, intelligent, and connected – and it starts with the infrastructure beneath it.