Artificial Intelligence (AI) in Life Sciences Market Size, Share, By Offering (Software, Hardware, and Services), Deployment (On Premise, and Cloud), Application (Medical Diagnosis, Drug Discovery, Precision and Personalized Medicine, Biotechnology, Clinical Trials, and Others), and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the artificial intelligence (AI) in life sciences market size is contemplated to enlarge at a valuation of USD 7.4 Billion.
• In 2024, the artificial intelligence (AI) in life sciences market valuation was USD 1.2 Billion.
• Artificial intelligence (AI) in life sciences market is developing at a CAGR of 20.0%.

In the life sciences, artificial intelligence (AI) refers to the use of sophisticated algorithms and machine learning to the analysis of intricate biological data in order to speed up drug discovery, improve diagnostics, and improve patient care. Artificial intelligence (AI) helps researchers create new therapies more quickly, customize medicine, lower costs, and increase the general efficacy and precision of healthcare and life sciences research by automating data processing and seeing trends that people would overlook.

The desire to expedite drug discovery, enhance diagnostics, customize therapies, and manage the vast amount of biological and clinical data created today is driving the expansion of artificial intelligence (AI) in the life sciences market. AI use is further fueled by growing healthcare expenses, the need for quicker and more precise medical solutions, and developments in big data analytics and cloud computing. AI is a desirable solution for pharmaceutical businesses, biotech companies, and healthcare providers since it also helps shorten research and development timeframes, reduces operating costs, and improves clinical trial success rates.

The emergence of personalized medicine, in which AI customizes treatments for each patient based on genetic and clinical data, and the growth of AI-driven drug discovery platforms that expedite development timelines are two future developments of artificial intelligence (AI) in the life sciences market. Predictive healthcare and patient monitoring will be improved by integrating AI with wearable technology and real-world data. A more effective and patient-centered life sciences ecosystem will be shaped by partnerships between tech companies, pharmaceutical companies, and healthcare providers, as well as by the growing importance of explainable AI (XAI) to increase transparency and trust in medical decisions.

Recession Risk & Tariff Analysis:

• As businesses reduce expenses, recession risks may impede investment and implementation of AI in the life sciences; nevertheless, the need for effective, economical solutions may also spur AI use.
• International trade restrictions or tariffs on technological components could raise the price of AI tools and systems, which could have an impact on international cooperation and market expansion.

Impact of Generative AI on Artificial Intelligence (AI) in Life Sciences Market:

• Through the creation of new compounds, the speeding up of drug development, and the enhancement of clinical trial simulations, generative AI is revolutionizing the life sciences industry and enabling quicker and more economical research. Its capacity to produce novel insights and forecast results fosters innovation and improves industry-wide decision-making.

Key Drivers:

The Market is Steadily Growing as a Result of Rising Healthcare Expenditure

As healthcare systems and pharmaceutical firms search for new ways to reduce costs and increase efficiency, rising healthcare expenditures are driving the expansion of artificial intelligence (AI) in the life sciences market. AI helps cut down on wasteful spending and enhance patient outcomes by enabling quicker drug discovery, more precise diagnostics, individualized treatment regimens, and better resource allocation. The need for AI-driven solutions that can streamline processes and produce innovative solutions at a reasonable cost is anticipated to increase quickly as healthcare spending continues to climb internationally.

• For instance, according to the data published by The World Bank Group, although it varies greatly by area, the average global healthcare spending as a percentage of GDP is between 9 and 10%. -income nations (such as the United States, Germany, and France) usually devote 10–17% of their GDP to healthcare. China, Brazil, and South Africa are examples of middle-income nations that typically spend 5–9% of their GDP.

Restraints:

Limited Access to High-Quality and Diverse Datasets may Impedes the Market from Development

One of the biggest obstacles to using AI in the life sciences is the lack of access to high-quality and diverse datasets.  Since many of the datasets that are currently accessible are tiny, biased, fragmented, or do not represent various populations, which can result in AI models that are erroneous or not generalizable. This restriction makes it more difficult to create trustworthy algorithms for customized medicine, diagnostics, and drug discovery.

• Counterbalance Statements: Promoting more cooperation and data exchange between pharmaceutical firms, medical facilities, and academic institutions while maintaining robust data privacy safeguards is a crucial remedy. Furthermore, without sacrificing patient privacy, data diversity and quality can be enhanced by making investments in data harmonization, standardization, and the use of synthetic data or federated learning.

Opportunities & Trends:

Future Market Prospects could be Explored by Rise of Personalized Medicine

The development of customized treatment regimens is made possible by AI's capacity to evaluate vast datasets, including genetic data, medical histories, and environmental influences. This makes personalized medicine a significant future trend for AI in the life sciences industry. AI can improve treatment results and reduce side effects by forecasting each patient's unique reaction to medications and therapies, which will further the shift toward more individualized, patient-centered care. It is anticipated that this trend would raise demand for AI solutions that facilitate large-scale personalized healthcare.

Offering, deployment, application, and region are the divisions of the artificial intelligence (AI) in life sciences market.

By Offering:

Software, hardware, and services are offerings on which artificial intelligence (AI) in life sciences market is segmented. Due to its crucial role in creating AI-driven platforms for drug development, diagnostics, and customized medicine, software has the biggest artificial intelligence (AI) in life sciences market share. Processing complicated biological data and improving research results require software solutions which includes data analytics tools and machine learning algorithms.

Services come in second considering they are essential to life sciences organizations' workflow integration of AI technologies, guaranteeing their successful adoption and optimizing the advantages of AI applications in healthcare. These services include consultancy, installation, and support.

By Deployment:

Based on the deployment, the artificial intelligence (AI) in life sciences market is divided into on premise, and cloud. The most market share is held by cloud deployment on account of its scalability, affordability, and accessibility for handling massive volumes of data without requiring a substantial amount of on-site infrastructure.

Although it is frequently more costly and less flexible than cloud choices, on-premise deployment comes in second and is preferred by businesses that place a high priority on data protection and regulatory compliance.

By Application:

According to the application, the artificial intelligence (AI) in life sciences market is divided into medical diagnosis, drug discovery, precision and personalized medicine, biotechnology, clinical trials, and others. The highest artificial intelligence (AI) in life sciences market share is held by drug discovery since AI has the ability to significantly speed up the identification of novel drug candidates, improve clinical trials, and shorten research timeframes.

Medical diagnosis comes in second for the reason AI is being used more and more in healthcare settings to improve diagnostic accuracy and decrease errors in identifying diseases possibly cancer or heart issues, enabling early intervention and individualized treatment plans.

Regional Insights:

Geographically, the artificial intelligence (AI) in life sciences market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America:  A strong healthcare system, significant investments in R&D, and the presence of top biotechnology and pharmaceutical businesses have all contributed to North America's dominance in the Artificial Intelligence (AI) in life sciences market. Rapid adoption is also made possible by a favorable regulatory environment, particularly for AI-driven healthcare advances. North America's market dominance is partly a result of the region's strong healthcare infrastructure, strong desire for personalized medicine, and developments in big data analytics and machine learning.

• U.S. Artificial Intelligence (AI) in Life Sciences Market Insights:

With AI applications ranging from drug discovery to clinical trials and customized medicine, the U.S. is a significant contributor. The development and application of AI technologies are aided by the substantial concentration of pharmaceutical and healthcare businesses, cutting-edge research facilities, and robust venture capital investments in the U.S. The region's dominance is further reinforced by its sophisticated technology ecosystem and benevolent regulatory framework.

Asia Pacific: The artificial intelligence (AI) in life sciences market is expected to grow at the quickest rate in the Asia-Pacific region, with a compound annual growth rate (CAGR) of 30.2% over the course of the forecast period. Large investments in biotechnology and AI research, especially in nations comparable to China and India, are driving this expansion. The Asia-Pacific region is anticipated to grow quickly in the Artificial Intelligence (AI) in life sciences market due to this confluence of factors, making it one of the most important areas for future expansion. The use of AI in medical research and practice is also being accelerated by the region's reasonably priced healthcare system and the capacity to use vast volumes of data for AI training.

• China Artificial Intelligence (AI) in Life Sciences Market Insights:

China is positioned as a growing hotspot for AI-driven developments in the life sciences due to its quick adoption of AI technologies in healthcare and government measures to improve medical infrastructure.

Europe: A robust healthcare system, rising demand for individualized medication, and technological and scientific breakthroughs are some of the drivers propelling the growth of artificial intelligence (AI) in life sciences market in Europe. To address escalating healthcare issues such as aging populations, the rise in chronic diseases, and the need for more effective healthcare delivery, European nations are making significant investments in AI research, biotechnology, and digital health solutions.

• Germany Artificial Intelligence (AI) in Life Sciences Market Insights:

The artificial intelligence (AI) in life sciences market is dominated by Germany. Germany's strong biotechnology and pharmaceutical industries, which are leading the way in using AI technologies for precision medicine, medication development, and health data analysis, are responsible for its leadership. Furthermore, the advancement and incorporation of AI in life sciences applications are being propelled by Germany's leadership in industrial technology and engineering.

Artificial Intelligence (AI) in Life Sciences Market Report Scope:

Attribute	Details
Market Size 2025	USD 1.4 Billion
Projected Market Size 2035	USD 7.4 Billion
CAGR Growth Rate	20.0% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Billion & CAGR from 2025 to 2035
Regional scope	North America - U.S. and Canada Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia, Malaysia, South Korea, and Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, and Rest of Latin America Middle East & Africa – GCC, Israel, South Africa, and Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Offering:

• Software
• Hardware
• Services

By Deployment:

• On Premise
• Cloud

By Application:

• Medical Diagnosis
• Drug Discovery
• Precision and Personalized Medicine
• Biotechnology
• Clinical Trails
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the artificial intelligence (AI) in life sciences market include, Pfizer Inc., F. Hoffmann-La Roche Ltd, Insilico Medicine, IBM, and others. Collaborative alliances, in which businesses engage closely with healthcare providers, academic institutes, and tech firms to accelerate AI-driven discoveries, will be a key strategy for AI in life sciences organizations. Businesses will also concentrate on the interoperability and scalability of AI technologies to ensure a smooth integration with current healthcare systems.

Artificial Intelligence (AI) in Life Sciences Market Companies:

• Pfizer Inc.
• F. Hoffmann-La Roche Ltd
• Merck & Co., Inc.
• PathAI, Inc.
• IBM
• TEMPUS
• Exscientia plc
• Insilico Medicine
• BenevolentAI
• Veeva Systems
• Clarivate
• Schrödinger, Inc.
•  Iktos
• Viz.ai, Inc

View an Additional List of Companies in the Artificial Intelligence (AI) in Life Sciences Market

• In May 2025, Salesforce has launched a certified partner network for its Life Sciences Cloud with the goal of assisting medtech and pharmaceutical companies in their large-scale deployment of digital labor solutions and migration from antiquated systems. Through the provision of industry-specific skills, implementation support, and seamless data integration, the new Life Sciences Partner Network aims to expedite the adoption of Agentforce, Salesforce's AI-powered digital labor platform.
• In February 2025, Cortex, a Generative AI (GenAI) platform tailored for the life sciences sector, was introduced by Indegene, a digital-first startup focused on commercializing the life sciences. Life sciences leaders can embrace and expand this game-changing technology with enterprise-grade governance thanks to Cortex by Indegene, a knowledge engineering and multi-agent orchestration platform designed specifically for the life sciences.
• In January 2025, in order to provide Discovery Life Sciences' clients with improved, AI-enabled digital and quantitative insights from biospecimens to further inform therapeutic and diagnostic research, PathAI established a strategic alliance with the company. Through this collaboration, Discovery will implement PathAI's ArtifactDetect, TumorDetect, and AISight Image Management System (IMS) technologies throughout its biospecimens business worldwide.

Analyst View:

In the life sciences, artificial intelligence (AI) analyzes complex biological data using sophisticated algorithms to speed up drug discovery, better patient care, and improve diagnostics. The industry is expanding as a result of big data developments, the demand for quicker fixes, and escalating healthcare expenses. Wearable integration, explainable AI, AI-driven drug development, and personalized medicine are some of the future trends that will propel a more effective and patient-focused healthcare system.

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Company Name	Pfizer Inc.
Headquarter	New York City, United States
CEO	Albert Bourla
Employee Count	81,000 Employees