A new report commissioned by Arnold & Porter, based on a survey of 100 senior executives and department heads from biopharmaceutical, digital health, diagnostics, and medical device companies, shows that artificial intelligence (AI) adoption is accelerating across the industry as companies implement it to accelerate product discovery and development, optimize manufacturing and the supply chain, improve marketing and sales strategies, and more.

However, as with any disruptive innovation, risks need to be managed. The report also highlights looming governance and compliance needs as companies seek to mitigate the risks associated with AI technologies, particularly in areas like data privacy, cybersecurity, and intellectual property.

The Arnold & Porter report found that AI use is still in its early stages for many in the life sciences industry, with around 75% of respondents beginning implementation less than two years ago. Despite this, 86% of companies currently integrating AI plan to fully deploy these tools within the next two years, reflecting a significant acceleration in AI adoption.

R&D Leading AI Use, with Commercial Functions Close Behind

Research and development (R&D) emerged as the leading area of AI implementation, with 79% of respondents actively using or planning to use AI to drive faster, more efficient drug discovery and clinical trials. AI is also making inroads into manufacturing (62%), marketing (45%), and regulatory functions (42%) as companies seek to harness the power of AI across the entire product lifecycle.

Governance Amid Rapid AI Adoption

Despite AI’s rapid pace, AI governance is an ongoing challenge for many life sciences companies. According to the survey, only 55% of companies currently using AI have implemented formal AI policies or standard operating procedures. Even fewer—just 51% of companies—have completed regular AI audits or assembled cross-functional teams to oversee safe and compliant AI use. This data suggests that companies will need to prioritize risk management and compliance more to realize AI's full potential without exposing themselves to unnecessary vulnerabilities.

AI's Impact on Product Discovery and Sales

The survey found that AI already delivers tangible benefits in the product discovery and commercialization phases. Approximately half of respondents have explored leveraging AI to optimize product discovery and design, citing anticipated faster time-to-market and improved efficiency as key drivers. Additionally, 85% of respondents reported that AI-driven initiatives to boost commercial effectiveness have been highly productive.

IP Concerns Loom as AI Expands

The survey also uncovered rising concerns over AI-related intellectual property issues. Nearly three-quarters (74%) of respondents expressed significant concern about the potential for AI to introduce new IP challenges within the next year. As AI-driven innovations continue to reshape the industry, life sciences companies are increasingly vigilant about protecting their breakthroughs.

Looking Ahead: AI's Growing Role in Life Sciences

As AI becomes more embedded in life sciences operations, its role in patient care and diagnostics is expected to grow. The survey suggests that AI-enabled diagnostic tools, clinical trials, and AI-assisted treatment plans will soon become standard across the healthcare industry. However, given that regulators are already signaling heightened scrutiny of AI use from a compliance perspective, companies must address governance gaps to ensure safe, effective, and compliant use as they progress with AI integration.

Arnold & Porter's full report, "The Convergence of Life Sciences and Artificial Intelligence: Seizing Opportunities While Managing Risk," can be found here. It also features in-depth analyses of the survey results and additional resources on AI issues in product design and discovery, intellectual property, medical device regulations, clinical development, privacy and cybersecurity, manufacturing and supply chain, commercialization, payments, governance and compliance, implementation, global considerations, and more.