New frontiers: How AI is transforming the life sciences industry - Key Findings

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1: AI is integral to business strategy

Three-quarters of life sciences companies say that AI is either crucial or very important to their business strategy. Within that, 68 percent of medical device companies and 56 percent of human pharma and biotech companies say AI is crucial to their strategy.

2: Budgets are rising

Sixty percent of respondents expect AI budgets to increase over the next 24 months, rising to 71 percent in human pharma. AI is moving from discretionary spend to a core line item supporting measurable improvements across the value chain.

3: Partnerships outweigh M&A

Sixty-two percent of companies plan to scale AI through joint ventures or strategic alliances, compared to just 26 percent prioritizing acquisitions. Human pharma shows more M&A appetite, while healthcare providers and animal health companies favor third-party buy-ins and/or VC investments.

4: Most AI investment will remain regional

The majority of respondents plan to invest locally, but 27 percent of Asia-Pacific-based firms expect to deploy their largest AI spend overseas—mainly in North America and EMEA—reflecting the maturity of those ecosystems.

5: Data security and integration top the list of practical barriers

More than half (55 percent) cite data security as an operational challenge to AI adoption, followed by implementation costs and legacy system integration. Skill shortages also continue to slow progress.

6: Legal concerns vary by company type

Patient privacy and contractual/licensing concerns are each cited by 42 percent of respondents. This rises to 66 percent of healthcare providers for the former. Contractual and licensing is the top legal concern for 60 percent of animal health companies.

7: IP liability remains a concern

Eighty-two percent of respondents express at least some concern about IP-related liability from AI use. Views differ by region: 46 percent of Asia-Pacific-based respondents are very concerned, compared with 27 percent in North America and 20 percent in EMEA.

8: Training and governance are inconsistent

Sixty-three percent of respondents have AI training in place, rising to 72 percent in human pharma. Just under half (48 percent) say AI governance is frequently discussed at board level, although this rises to 64 percent for medical device companies and 60 percent in North America across all company types.

9: Legal uncertainty is a brake on adoption

Sixty-six percent agree that a lack of legal clarity hinders AI deployment at their organization. This view is particularly strong in animal health, where 84 percent agree.

10: Investors expect credible AI strategies

Ninety-seven percent agree to some degree that life sciences companies will be significantly less attractive to investors without effectively maximizing the potential of AI in the next two years. Strong agreement is highest among animal health (64 percent) and human pharma (60 percent) firms.

11: AI is expected to improve patient outcomes

Almost all organizations interviewed (98 percent) expect AI to deliver better outcomes for patients. Optimism is strongest in human pharma, where 68 percent anticipate significant improvements in the next 24 months, and in EMEA, where 70 percent expect major gains over this period.

12: Metrics for success depend on sector focus

Diagnostic accuracy is the leading success metric overall (44 percent), especially for medical device firms (58 percent). Healthcare providers prioritize patient access and health equity (58 percent), while animal health companies focus on cost reduction (52 percent).

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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