AI is transforming life sciences but raising risk concerns, new benchmark report finds

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 AI adoption is accelerating across the industry as companies implement it to accelerate product discovery and development, optimise 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 such as 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 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 life cycle.

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 prioritise risk management and compliance more to realise AI's full potential without exposing themselves to unnecessary vulnerabilities.

The survey found that AI already delivers tangible benefits in the product discovery and commercialisation phases. Approximately half of respondents have explored leveraging AI to optimise 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.

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 intellectual property challenges within the next year. As AI-driven innovations continue to reshape the industry, life sciences companies are increasingly vigilant about protecting their breakthroughs.

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 signalling 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, commercialisation, payments, governance and compliance, implementation, global considerations, and more.

Arnold & Porter combines sophisticated regulatory, litigation, and transactional capabilities to resolve clients’ most complex issues. With over 1,000 lawyers practising in 15 offices worldwide, the firm offers deep industry experience and an integrated approach that spans more than 40 practice areas. Through multidisciplinary collaboration and focused industry experience, the firm provides innovative and effective solutions to mitigate risks, address challenges, and achieve successful outcomes.