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New frontiers: How AI is transforming the life sciences industry

Taking the pulse of AI in the life sciences sector and exploring how organizations can maximize opportunities from this rapidly evolving technology to build healthier futures

Embracing change

The convergence of artificial intelligence (AI) and life sciences is no longer a distant promise. Companies operating in the sector are actively embracing the technology and are already achieving measurable results. In the following exclusive report from White & Case, in association with Mergermarket, this new reality is explored in depth. Drawing on a proprietary survey of senior executives spanning human pharma and biotech, healthcare provision, medical devices and animal health, the report provides a comprehensive overview of where the sector stands and where it may be heading.

Recent market data demonstrates the scale and urgency of this shift. AI in the pharma market alone is projected to reach US$25.7 billion by 2030, up from around US$4 billion today, according to market research firm Mordor Intelligence. AI-driven drug discovery is also expected to exceed US$20 billion by 2030, per research organization Grand View Research, as firms seek faster routes to novel compounds and more precise trial matching. These forecasts underscore that AI is much more than merely a back-office optimization tool; it is becoming integral to how life sciences companies design, test and deliver therapies, with growing expectations from regulators, investors and patients alike.

Our findings confirm this transition of AI from experimentation to practical application. Tools are being embedded in product design, trial optimization, diagnostics, drug target identification and commercial execution. Organizations are also adapting internally—reassessing governance structures, workforce capabilities and legal frameworks to ensure AI can scale sustainably and in compliance with complex legal frameworks. Board-level involvement is growing, and forward-looking investment strategies are being developed to match the pace of innovation.

This research explores the sector's priorities and pain points in detail. The report begins by mapping current use cases and business goals, showing how companies are deploying AI to address real operational needs—from shortening development cycles to improving diagnostic accuracy. It then turns to the structural challenges that remain, including the legal and regulatory complexities surrounding general AI deployment and use, data protection, intellectual property (IP) and cross-border compliance. These risks are shaping how organizations approach partnerships, procurement and policymaking.

Investment is a central theme. Budgets are shifting from discretionary pilots to embedded line items, with many companies pursuing joint ventures, acquisitions or internal buildouts to accelerate capability development. Local sourcing is often favored, but appetite for cross-border expansion remains in markets with advanced regulatory pathways or concentrated AI talent.

In conclusion, the report examines how success is being defined and why it matters. Metrics such as diagnostic accuracy, cost reduction, and patient access are becoming essential to both internal planning and external validation. Encouragingly, the vast majority of respondents believe AI will improve patient outcomes, while investors increasingly view AI maturity as a signal of innovation-readiness and long-term value creation.

With AI moving rapidly up the agenda in boardrooms and regulatory agencies, understanding how to scale responsibly and legally is critical. This report offers a grounded view of what effective AI adoption in life sciences looks like today—and where the next key opportunities and risks lie.

Methodology

In 2025, White & Case, in partnership with Mergermarket, surveyed 200 senior executives of life sciences organizations. The organizations surveyed included human pharma and biotech companies (75), healthcare providers (50), medical device companies (50) and animal health companies (25). Respondents from each company type were split equally between EMEA (66), Asia-Pacific (67) and North America (67).

The state of the market

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Opportunities in AI

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Patient, commercial and regulatory concerns

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How companies are investing in AI

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Conclusion: A healthy future for AI in the life sciences arena

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Five key takeaways

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Key findings

Insight
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3 min read

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).

White & Case means the international legal practice comprising White & Case LLP, a New York State registered limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law and all other affiliated partnerships, companies and entities.

This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.

© 2026 White & Case LLP

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