Renew is a technique, not a spell. That means you have to cast it manually when you need it. Your AI teammates will never use a technique on their own. They will cast Raise if they have it, but their priority is for non-KO characters so if you're taking a lot of damage your healer will just continuously heal you and themselves and never Raise.
Of course, you could always control your Medic if the AI isn't effective enough for the area/battle you are in. I know I've had to spam Phoenix Downs on more than one occasion before my lead character got Renew and even then, if I didn't have TP I still ended up scrabbling to get everyone up after heavy AoE spam.
~DragonHeart~
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