Foreword This report provides a snapshot on technologyadoption, investment, and value realization within the Life Sciences sector. The research isbased on a global survey of 124 Life Sciences tech function leaders in large and mid-sized pharmaceutical, biotechnology and medical devicecompanies; as well as product distributors, and contract research organizations. experimentation into broad adoption of core technologies.Investment remains measured, with organizations prioritizingstability and compliance over rapid expansion. Overall, the sectorremains in the early phases of maturity and value realization, and patient-focused future, Life Sciences companies should makemore decisive technology moves that rebalance risk — away fromadoption and compliance, towards scale, speed, and value capture. decision-making in a rapidly evolving landscape. Global Head of Life Sciences andGlobal Head of Deal AdvisoryKPMG International although the industry has demonstrated the effectivenessof digital technology and is enabling returns on investment,challenges remain in securing funding, establishing governance, Key findings What Life Sciences technologyfunction leaders are saying about… Most are balancingmaintenanceofexistingsystemswithcapabilityupgrades Nearly half (48%) are achieving significant value realization on their technology investments,yet 93% report digital initiatives generate less than1% of annual revenue — into workflows, products,and services highlightingascale/valuecapturegap 75% of annual revenue todigital technology97% significantlytrailsotherindustriesin scaling XaaS, Web3, VR/AR/XR, digitaltwins and AI/automation strategic and operationaldecisions technology sourcing and vendor management Technologyadoptionandmaturity digital transformation with a deliberateand structured approach that emphasizesstability, compliance, and measuredinnovation over rapid disruption. Whenasked about their organizations’ approachesto adopting new technologies, more thanhalf (52 percent) of respondents identify Core technologies such as AI, cybersecurity, and data analytics have been widely adopted, while immersive and emerging technologies are progressing more slowly. For example, 44 percent report no action being taken in the area of VR/AR/XR/spatial computing. 58%54%52%51% AI adoption is now a baseline expectation across the sector with nearly half (48 percent) of organizations strategically integrating thetechnology into core business functions. Operational adoption is high, with 87 percent indicating that AI agents are being integrated into that many AI initiatives risk remaining localized, bespoke or pilot-bound without stronger platform, governance and change disciplines. To get a deeper viewon where the technology is being used inthe sector we asked respondents about their organization’s AIcapabilities today, and in the future. Our research shows that AI adoption is shifting from limitedanalytics-focused applications and experimental deploymentsto embedded capabilities. Initially concentrated in areas such asdata science, biostatistics and commercial functions, adoption isexpanding into back-office operations and strategic domains suchas M&A and licensing, as well as regulatory affairs and government standalone initiatives to business-as-usual workflows, withsustained emphasis on pricing and market access, data science andbiostatics, and medical affairs/physician engagement. Advanceswill continue to unfold in key areas such as precision medicineand patient stratification, clinical trial acceleration, and enterpriseperformance improvement/optimization. This trajectory reflects asector-wide commitment to scalable AI integration — balancinginnovation with governance and compliance priorities. Effective workforce model where AI augments rather than replaces humanroles. Hiring strategies increasingly include AI-native positions,while upskilling remains critical as some employees struggle withrapid technological change. Investments in agentic AI and digitalworkforce expansion signal a clear move toward automation, withpermanent staff slightly reduced and external contractors declining. Technology function maturityTo obtain a snapshotof maturity across core technology functions, executives across all Life Sciences company typessampled were asked to rate their organization’s maturity acrossa five-stage scale. This analysis reveals that organizations inthe sector exhibit a maturity curve heavily weighted toward the maturity as capable but constrained, because ultimately, thismaturity stage is inadequate in the Intelligence Age. Managedmaturity indicates disciplined processes and governance, but itcan also mask a plateau. As AI becomes embedded into regulatedend-to-end value streams, organizations should progress toward Processes are continuously improved through across teams is inconsistent/Processes are informal,undocumented, and reactive. actively managed innovation, automation and best pr