Life Sciences firms move beyond AI pilots, focus on scaled adoption and governance: KPMG

Life sciences companies worldwide are moving beyond experimentation and embracing scaled deployment of digital technologies, with artificial intelligence (AI) increasingly becoming embedded in core business functions, according to KPMG International’s Global Tech Report 2026: Life Sciences.

The report, which surveyed 124 technology leaders from pharmaceutical, biotechnology, medical devices and contract research organisations, highlights a sector balancing innovation with regulatory compliance, operational stability and measurable business outcomes.

According to the study, life sciences organisations are taking a cautious but deliberate approach to digital transformation, prioritising technologies that deliver tangible value while strengthening governance and risk management frameworks.

The findings are particularly relevant for India, where life sciences companies are facing growing demand for innovation in precision medicine, faster clinical trials and patient-centric healthcare while simultaneously navigating regulatory complexities and cost pressures.

Digital technologies are increasingly being deployed across research, manufacturing and commercial operations to improve efficiency and accelerate innovation. However, the report notes that scaling these initiatives will require stronger data foundations, cloud infrastructure and enterprise-wide technology integration.

Indian life sciences firms are increasingly incorporating AI into critical functions ranging from drug discovery and clinical development to regulatory compliance and commercial operations. As adoption expands, companies are also investing in data management, governance frameworks and cloud capabilities to support deployment at scale.

“India's life sciences sector is moving from experimentation to enterprise-scale transformation,” said Vijay Chawla, Partner and Chief Operating Officer – Consulting and Head of Life Sciences at KPMG in India.

“For India, these findings signal a clear shift from pilots to scale, where success will hinge on strengthening data and cloud foundations, backing fewer high-impact bets, and converting AI adoption into measurable, enterprise-wide value. They also reinforce the need to bridge the gap between innovation and impact by industrialising digital capabilities and embedding governance-led execution,” Chawla said.

The report reveals that while organisations are increasingly embracing AI, investment strategies remain conservative and disciplined.

Nearly 97% of surveyed organisations allocate less than 1% of their annual revenue to digital technology initiatives, reflecting a measured approach to technology spending.

At the same time, AI adoption is accelerating rapidly. About 87% of respondents reported integrating AI agents into workflows, products and services, while 48% said AI has already been strategically embedded into core business functions.

Confidence in AI-generated insights is also rising. Three out of four respondents said they trust AI outputs for strategic and operational decision-making, signalling growing acceptance of AI-enabled enterprise models.

However, the report highlights a significant gap between technology adoption and value creation. While 48% of organisations reported achieving substantial value from technology investments, 93% said digital initiatives contribute less than 1% of annual revenue.

The findings suggest that many organisations are still struggling to translate innovation efforts into meaningful financial returns.

Scaling AI remains another major challenge. Around 44% of respondents cited limited organisational maturity in funding, supporting and scaling AI initiatives, underscoring the difficulties involved in moving from pilot programmes to enterprise-wide deployment.

Cybersecurity, AI, and automation, along with data and analytics, emerged as the top investment priorities for life sciences companies.

More than one-third of organisations indicated plans to increase budgets for these areas by over 10%, reflecting growing concerns around data security, regulatory compliance and the need for advanced analytics capabilities. The report also found that 52% of life sciences organisations identify themselves as “fast followers” in technology adoption, preferring proven and validated innovations over early-stage experimentation.

KPMG said the life sciences industry is approaching a pivotal stage in its digital transformation journey. Companies that successfully move from fragmented pilot projects to integrated, enterprise-wide technology deployment are likely to gain a significant competitive advantage.

The report concludes that organisations capable of strengthening foundational capabilities in data, cloud infrastructure and governance while scaling AI and automation will be best positioned to unlock transformative value, accelerate innovation and improve patient outcomes in the years ahead.