A recent global survey by KPMG reveals that 73% of technology leaders in the life sciences sector believe artificial intelligence (AI) will profoundly transform the industry, driving significant efficiency gains and enabling new business models. The life sciences industry, encompassing research, development, manufacturing, and supply of human, plant, and animal health products, is recognized as one of the most complex and highly regulated sectors globally. Despite these challenges, it is at the forefront of digital transformation efforts aimed at creating new value and improving operations.
The KPMG Global Tech Report: Life Sciences Insights draws on responses from 123 senior technology executives across 26 countries, part of a broader survey of 2,450 tech leaders from multiple industries. The findings highlight that while AI adoption is accelerating, with over one-third of life sciences organizations using AI at scale and achieving returns on investment, significant hurdles remain. Notably, 63% of respondents cite risk aversion among senior leadership as a major factor delaying digital transformation initiatives, making life sciences the sector most affected by this challenge.
Only 59% of life sciences tech leaders feel their technology investment decisions consistently yield valuable outcomes, reflecting the sector’s struggle to balance innovation with regulatory compliance and operational complexity. Furthermore, 40% of respondents plan to manage a hybrid environment that integrates legacy systems with new technologies – a rate 14 percentage points higher than the cross-industry average. The report also finds that life sciences organizations lead all surveyed industries in prioritizing cutting-edge technologies such as edge and quantum computing, virtual/augmented/mixed reality (VR/AR/XR), spatial computing, and “everything as a service” (XaaS) platforms. These investments underscore the sector’s commitment to leveraging advanced digital tools to accelerate innovation and speed up bringing products to market.
Vijay Chawla, Partner and Head of Life Sciences at KPMG India, emphasized that while digital transformation can reduce time to market and enhance innovation, it also comes with costs, requiring companies to adopt more strategic and cohesive approaches. He noted that fragmented, siloed initiatives often lead to inefficiencies and higher expenses. The report recommends that life sciences firms focus on unified investments in data management, AI, and cybersecurity to enable more sustainable and effective digital transformation.
Overall, the KPMG survey paints a picture of an industry on the cusp of a technological revolution, with AI poised to reshape research, compliance, clinical trials, and patient outcomes, provided organizations can overcome internal resistance and align their strategies for the digital future.