Beyond The Buzz

Eye​​ on the Prize

ROI potential of AI in healthcare and life sciences

​Welcome back to our journey through the world of AI in healthcare and life sciences!

From expediting and simplifying administrative tasks to its superhero capabilities in optimizing patient care, AI has truly being a revolutionary life- and time-saving technology for good.

Yet, with that being said, as Pharmas, CROs, MedTechs and Healthcare ISVs journey deeper into this paradigm-shifting digital frontier, they will still need to address​​​ budgetary and cost containment imperatives prevalent across most organizations.

And that's where AI can be a major value add to healthcare and life sciences companies. Because beyond the technological and business benefits offered by AI, AI also offers substantial bottom-line benefits whether it comes to optimizing resource allocations or reducing operational expenses. Let's take a look at good ROI AI can deliver.

One way to counter the challenges impacting operating margins especially in MedTech is by embracing AI-driven supply chain management integration. This would help streamline operations, reduce costs and enhance profitability.

AI analytics optimize inventory levels, preventing stockouts and minimizing wastage. Predictive maintenance mitigates equipment failures, helping ensure uninterrupted production while reducing downtime. AI pricing tools facilitate confident negotiations by analyzing market demand and competitor strategies. Furthermore, fostering collaboration through AI platforms accelerates R&D efforts, resulting in innovative solutions.

By embracing AI, MedTech companies, for example, can navigate market disruptions, sustain profitability and drive growth in the ever-evolving and turbulent HLS space.

Facing complexities across the Pharma industry

​The rate of technology change along with regulatory, economic and operational market swings are adding increased complexity for pharmaceutical manufacturers.

Source: World Trade to GDP Ratio 1960-2024​

AI presents some compelling solutions to address these challenges

  • AI-driven drug discovery expedites and enhances R&D processes, mitigating the impact of offshore production shifts.
  • Digital health technologies, coupled with AI, optimize patient engagement and streamline healthcare delivery, aligning with evolving models
  • AI's ability to analyze vast datasets allows for the development of personalized medicine, creating better pathways to tailor treatments to individual patients.
  • AI-powered analytics provides insights into market trends and consumer behavior, guiding stronger strategic decision-making.

By adopting AI solutions, pharmaceutical companies can navigate economic headwinds, reduce development costs and keep pace with the new healthcare paradigm.

Here's the proof​​​

A multinational ISV faced with challenges of time-consuming and inefficient trial runs applied a groundbreaking fusion of physics and machine learning to build a software program that analyzes binding affinity and absorption to identify suitable compounds as potential drug candidates. Today, 20 of the world's top Pharma companies use the software during their drug discovery programs, while more than 750 companies have access to the licensed software.​

What lies ahead

In the final article in this three-part series, we'll take a closer look at real-world examples of AI solutions helping organizations achieve better financial results and cost savings while still being able to focus on the more important mission of improving human health.

Sourabh Chongdar

Global Practice Leader – Healthcare and Life Sciences
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