Internet of Medical Things Surpasses AI as Leading Growth Driver for Life Science CEOs

Key Takeaways

83% of life sciences CEOs identify IoMT as essential for growth and operational efficiency.
73% plan to allocate 10% to 20% of their technology budgets to AI, despite integration challenges.
86% express a strong appetite for mergers and acquisitions in the next three years, focusing on long-term value.

IoMT Drives Future Growth in Life Sciences

A recent KPMG report reveals that 83% of life sciences CEOs consider the Internet of Medical Things (IoMT) to be vital for growth, research and development acceleration, and operational efficiency over the next three years. The survey, which included 110 CEOs from various countries, highlighted that Pharma leaders made up the majority of respondents.

IoMT outperformed other technologies such as AI, with 75% to 80% of CEOs emphasizing the importance of agentic AI, AI in products and services, biomimetic devices, and privacy-enhancing technologies. According to Kristin Ciriello Pothier, head of life sciences at KPMG, there is a significant emphasis on multi-omics to create innovative therapies, alongside a priority for AI to enhance efficiency.

Despite challenges with AI integration—cited by 28% of CEOs as a pressing concern—73% plan on investing 10% to 20% of their tech budgets in AI. Notably, 22% expect returns within a year, while 65% anticipate it in the next one to three years. The potential for AI in healthcare is projected to reach a market valuation of $19 billion by 2027.

The benefits of AI incorporation are noteworthy; 25% of CEOs cited improved decision-making and data analysis, with 17% mentioning increased efficiency and 14% profitability. Peter Liddell from KPMG emphasized that current AI initiatives aim to provide value beyond basic operational efficiency.

Within the report, 83% of CEOs expressed optimism regarding industry growth, while 86% demonstrated a strong inclination towards mergers and acquisitions in the near future. Liz Claydon from KPMG noted that leaders are becoming more discerning in their M&A strategies, focusing on sustainable long-term performance.

Overall, KPMG’s executive summary indicates that the combination of innovation and efficiency will drive near-term growth in the life sciences sector. The findings reflect an industry poised for advancement through strategic investments in technology and careful M&A practices.

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