The COVID crisis will spur leaders of life sciences companies around the world to focus on longstanding pain points that AI could help alleviate, according to a survey-based report out this month from Deloitte. And the execs are looking to put their money where their responses are.
Analyzing forms completed by 148 executives in the last quarter of 2019, the consulting giant found more than 60% of life sciences companies spent at least $20 million on AI initiatives last year. At that time more than half of this subset expected investments to increase this year.
The top three reasons for upping the AI spend: refining existing products (28%), developing new products and services (27%) and improving efficiencies (22%).
Other interesting findings in the report, which also draws from interviews with industry executives and observers:
- 41% of responding life sciences companies invested between $20 million and $50 million in AI during 2019.
- 21% spent more than $50 million on the emerging technology.
- 50%-plus intend to keep spending this year as AI “moves from tactical improvements in efficiency to larger-scale, organization-wide projects,” Deloitte reports.
- 46% seem to accept that the time window for enjoying a return on AI investment takes longer than they’d expected.
In their executive summary, the report’s authors note that AI adopters in the life sciences tend to buy more than they build while seeing topnotch AI technology as key to their respective pursuits of competitive advantage.
“As options for platforms, solutions and vendors proliferate and improve, becoming more astute consumers of AI technologies will likely become increasingly important for companies,” they comment. “Being able to integrate and scale those technologies, no matter where they come from, should also be critical.”
The report is available in full for free.
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.