Recently, Artificial Intelligence has started showing up in the realm of health care innovations with researchers exploring its potential for healthcare organisations. Since healthcare possess industry specific features, the context and challenges of exploring AI adoption in healthcare is different than other industries. This study intends to conduct grounded theory to review the strategic, cultural, environmental and operational factors towards adoption of AI technology in Indian hospitals. The study uses purposive sampling to conduct semi-structured in-depth interviews of the decision makers of various healthcare organizations across the country. The present study would contribute to the existing literature on the impact of disruptive technology on healthcare as it would be a comprehensive study assessing the determinants of adoption in hospitals.