Scaling AI in pharma: EY-Parthenon & Microsoft report charts path to enterprise adoption at BioAsia 2025 

• As per industry research, AI market in pharma is projected to reach $16.49 billion by 2034
• AI is driving drug discovery, clinical trials, personalized healthcare and more
• The report outlines five critical strategic pillars and key drivers for successful AI implementation

Hyderabad, 25 February 2025 – With the AI market in pharmaceuticals projected to hit US$16.49 billion by 2034¹ and AI-driven medical devices set to grow to US$97.07 billion by 2028², the life sciences industry stands at a crucial turning point. While AI is already transforming drug discovery, clinical trials, and precision medicine, widespread implementation remains a challenge. To bridge this gap, EY-Parthenon and Microsoft have released their latest report, “Artificial Intelligence at the Helm: Revolutionizing the Life Sciences Sector”, at BioAsia 2025, outlining a strategic AI adoption framework to help organisations scale AI effectively.

The EY – Microsoft report introduces an AI Maturity Framework that categorises pharma organisations into three stages of AI adoption:

• Foundational – Organizations experimenting with AI but lacking large-scale implementation.
• Innovative – Companies integrating AI into select functions but not yet fully optimized.
• Transformational – Businesses leveraging AI enterprise-wide, driving competitive differentiation.

Organisations may operate at different maturity levels across various functions, reflecting the diverse pace of AI integration within the industry.

Speaking on the report’s insights, Suresh Subramanian, National Lifesciences Leader, EY-Parthenon India, said, “AI is no longer a futuristic concept—it is fundamentally reshaping the life sciences sector. From accelerating drug discovery to optimizing clinical trials and revolutionizing manufacturing, AI is driving efficiencies across the entire pharma value chain. However, successful adoption requires more than just experimentation. Our AI Maturity Framework provides a structured roadmap to help organizations move from fragmented AI initiatives to enterprise-wide transformation. Organizations that proactively invest in AI maturity today will be the industry leaders of tomorrow.”

Trupen Modi, Sr. Industry Executive, Pharma and Life Science, Microsoft added, “Technology plays a pivotal role in enhancing healthcare and advancing life sciences, driving innovations that improve patient care, support clinicians, streamline research and foster better health outcomes. Advances in Artificial Intelligence (AI) are optimizing manufacturing and supply chain processes, ensuring efficiency and reliability.  AI is also reshaping the regulatory landscape by automating document analysis, streamlining submissions for regulatory approval, and monitoring compliance. This reduces time to market and improves accuracy. Microsoft’s contributions to the health and life sciences industry span innovations in data and AI to ground breaking research initiatives that are transforming and empowering clinicians and researchers.”

The EY – Microsoft report identifies three key categories of challenges hindering AI adoption within pharma organizations:

• Ethical concerns, such as algorithmic bias and transparency in AI decision-making, remain a key challenge. In pharmaceutical development, biases in AI models could lead to treatment protocols favouring certain demographic groups, compromising the goal of truly personalised medicine.
• Technical challenges related to data privacy, security and complex regulatory compliance. Navigating evolving regulations is critical for AI integration, requiring a strategic and informed approach.
• Operational barriers, including a shortage of AI-skilled professionals and resistance to change. AI is automating repetitive tasks and bringing operational efficiencies across all roles. As AI automates repetitive tasks, professionals must shift toward more strategic, AI-augmented roles.

However, the EY- Microsoft report emphasizes that these challenges should be seen as opportunities for developing robust AI adoption strategies in the life sciences industry. As per the report, 75% of CXOs in India’s life sciences industry confirmed that AI has significantly contributed to cost reduction and customer satisfaction.

To progress along this maturity curve, the report outlines five critical pillars for successful AI integration:

• AI-first business and operating models that embed AI-driven decision-making across functions.
• Technology stack enhancements to support large-scale AI deployment and innovation.
• Comprehensive AI-ready data strategies ensuring security, compliance, and accuracy.
• Workforce readiness for AI, addressing change management and interdisciplinary skill development.
• Risk and compliance frameworks ensuring AI governance, transparency, and cybersecurity.

As per the EY-Microsoft report, AI is enabling breakthroughs across multiple functions in life sciences:

• Pharmaceuticals & Biotechnology: AI is accelerating R&D processes by identifying drug targets, predicting molecular interactions, and enhancing toxicity assessments. It is also transforming clinical trials through AI-driven patient recruitment, trial planning, and improving production quality, predictive maintenance, etc. in manufacturing and supply chains.
• Medical Technology (MedTech): AI is revolutionizing device design by leveraging real-world data and generative design techniques. It is also enabling predictive maintenance of medical devices, reducing downtime and extending product lifespan.
• Academic Medical Centers (AMCs): AI is enhancing medical education through immersive, mixed-reality training and data-driven research by automating literature reviews and optimizing grant funding allocation.

Conclusion

The report emphasizes that AI adoption is not a choice but a strategic imperative for the life sciences industry. Organizations must assess their current AI maturity level and develop a structured roadmap for integration to drive innovation and business growth.

Notes to Editors

About EY-Parthenon

EY-Parthenon teams work with clients to navigate complexity by helping them to reimagine their eco-systems, reshape their portfolios and reinvent themselves for a better future. With global connectivity and scale, EY-Parthenon teams focus on Strategy Realized — helping CEOs design and deliver strategies to better manage challenges while maximizing opportunities as they look to transform their businesses.

From idea to implementation, EY-Parthenon teams help organizations to build a better working world by fostering long-term value. EY-Parthenon is a brand under which a number of EY member firms across the globe provide strategy consulting services.

For more information, please visit ey.com/parthenon.