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July 2025
The worldwide next-generation AI in life sciences market is experiencing significant expansion, with projections indicating a revenue increase reaching several hundred million dollars by the end of the forecast period, spanning 2025 to 2034. This growth is driven by emerging trends and strong demand across key sectors.
Generative has the ability to reduce the administrative burden on doctors by automating masking tasks like clinical coding, referral letter writing, and clinical consultation. The growth of hospitals and the industry's change are driving the need for generative AI in the healthcare sector. The global market for generative AI in healthcare is expected to grow even more in the coming years due to a number of factors, including the capacity to create artificial datasets for machine learning model training, enhance patient engagement, expedite processes and boost efficiency, and the expanding trend of collaboration between AI developers and healthcare professionals. Together, these components foster the development and application of generative AI in the medical field.
The Next-Generation AI in Life Sciences Market refers to the deployment of advanced artificial intelligence (AI) technologies-such as foundation models, generative AI, multimodal learning, federated learning, self-supervised learning, and quantum-AI hybrids-to accelerate innovation across life sciences. This market spans biopharmaceutical R&D, diagnostics, personalized medicine, drug safety, clinical trial optimization, and real-world data (RWD) analysis.
Rising Drug Discovery
AI approaches have recently been applied in a variety of biological research and medication development domains. Generative AI systems are becoming a powerful tool in the hunt for innovative and new drugs. These drugs were created using sophisticated algorithms that might fundamentally alter the way we do drug research and discovery. Generative AI in medicine has a lot of potential, and ongoing research and development are leading to exciting discoveries.
Data Privacy Concerns
Using AI systems in the healthcare sector involves processing extremely sensitive data, including genetic information, medical reports, clinical images, and diagnostic results. If this information is compromised or leaked, individuals' privacy and dignity may be severely compromised. AI has the power to revolutionize the life sciences sector, but only if privacy is seen as an essential element of a safe and transparent future.
Rising Demand for Personalized Medicine
The inadequacies of standard medicines have led patients and caregivers to focus more on tailoring medical interventions based on genetics, individual lifestyles, and specific health concerns. Generative artificial intelligence (AI) has enabled this shift by providing a platform for the analysis of vast amounts of patient genomic, proteomic, and metabolic profile data to develop customized therapy regimens. To improve patient outcomes and intervention accuracy, several AI algorithms will help the caregiver predict the response of the various patients to various treatments.
By application, the drug discovery & design segment captured the next-generation AI in life sciences market share in 2024. Using cutting-edge generative AI technologies, drug development teams may study the fundamental components of molecular sequence, structure, function, and meaning. This enables them to create or design new molecules that are likely to have the necessary qualities. By using these tools, scientists can narrow down the pool of potential drugs to study, negating the need for costly, time-consuming physical testing.
By application, the clinical trials & patient simulation segment is anticipated to be the fastest-growing with a CAGR during the upcoming period. The rapid expansion of efforts to eliminate administrative and procedural redundancy characterizes the current status of generative AI in clinical research. AI in healthcare simulation improves pre-clinical learning experiences and clinical skill improvement. AI may also be used to analyze scenario recordings from live healthcare simulations.
By AI technology type, the foundation models & generative AI segment dominated the next-generation AI in life sciences market in 2024 and is expected to grow at the fastest CAGR during the forecast period. Generative AI is revolutionizing clinical research and life science consultancy by offering innovative solutions to persistent issues. Through the use of complex algorithms, this technology can accelerate data processing, optimize trial designs, and improve patient recruitment. Furthermore, foundation models transform life science research and discovery by directly understanding the fundamental structure, principles, and interactions of biology and chemistry, based on data across a wide range of sequences, structures, functions, and modalities.
By deployment type, the cloud-based platforms segment held the largest next-generation AI in life sciences market share in 2024. More companies and individuals are shifting their generative AI projects to the cloud, even though generative AI models may be developed and trained on-premises. All of the top cloud platforms, including AWS, Microsoft Azure, and Google Cloud Platform, provide a wealth of computational resources, datasets, and tools that might enhance and expedite generative AI modeling, training, fine-tuning, and other procedures.
By deployment type, the hybrid architectures segment is expected to grow at the highest rate during the forecast period. Depending on factors like query and model complexity, hybrid AI systems may share work between devices and the cloud using a variety of offload strategies. Hybrid AI architectures, or AI that operates on a single device, also offer the benefits of global performance, customization, privacy, and security.
By end-user, the biopharmaceutical companies segment led the next-generation AI in life sciences market in 2024. Nowadays, a lot of biopharma companies have advanced operations and are using GenAI to analyze their data repositories. The potential of (GenAI) to revolutionize regulatory work is being aggressively investigated by biopharmaceutical firms, who are under increasing pressure to expedite development schedules and enhance the speed and caliber of regulatory submissions.
By end-user, the AI startups & tech providers segment is estimated to grow at the highest CAGR during the predicted timeframe. The life sciences industry is seeing a rise in the number of AI startups and software companies that use AI and machine learning to speed up drug discovery, optimize clinical trials, and improve healthcare delivery. These businesses are creating cutting-edge solutions for a range of uses, including medication research, customized medicine, illness diagnostics, and more.
By therapeutic area, the oncology segment held the largest share of the next-generation AI in life sciences market revenue in 2024. Generative AI is improving cancer diagnosis and detection by transforming oncological imaging. With the potential to completely alter clinical practice, treatment modalities, and research paradigms, the advent of GenAI represents a significant shift in oncology. With its unique methods for diagnosis, therapy planning, and patient communication, this technology has enormous potential for use in the field of cancer research.
By therapeutic area, the infectious diseases segment is anticipated to at the fastest CAGR during 2025-2034. Artificial intelligence (AI)-based methods are particularly useful in addressing the problem of infectious diseases, which are complex at many scales, from cells to communities, and for which innovations in biotechnology and medicine are essential success factors. Public health emergency (PHE) management and research are becoming more comprehensive, faster, and more accurate thanks to big data and GenAI technologies, which are also transforming infectious disease epidemiology.
By data source, the genomic & omics data segment dominated the next-generation AI in life sciences market in 2024. Because generative AI makes it possible for effective analysis, visualization, and biomarker discovery, it is revolutionizing how scientists work with complicated multi-omics data. Workflows are streamlined, drug discovery procedures are improved, and customized treatment is supported. In the future, generative AI and quantum computing will be combined to create quicker genetic simulations.
By data source, the imaging & pathology data segment is estimated to grow at the highest CAGR during the upcoming period. Using machine learning (ML) and artificial intelligence (AI), computational pathology has become a more promising topic in recent years. With AI-driven analytical tools, pathologists' clinical duties—such as making accurate diagnoses and measuring biomarkers for diagnosis, prognosis, and predictions—may be improved in terms of accuracy, repeatability, and scalability.
North America dominated the next-generation AI in life sciences market share by 50% in 2024. One of the most sophisticated healthcare systems in the world is found in North America, especially in the U.S. and Canada. This comprises state-of-the-art medical facilities, research centers, and a robust network of clinics and hospitals that utilize generative AI technology to enhance patient care, streamline processes, and more effectively manage resources. The incorporation of AI tools and technology into routine medical practice is supported by a robust healthcare infrastructure. Additionally, the area is at the forefront of the digital revolution in healthcare and technical preparedness. An excellent setting for incorporating generative AI into medical operations is created by the expanding usage of telemedicine, electronic health records (EHR), and health IT infrastructure.
The U.S. leads the market in North America due to technological advancements in healthcare and the strong presence of major market players. These factors support the market's growth, as they lead to increased investment by key players and government organizations. Apart from this, the growth of digital health has also contributed to the use of generative AI in the life sciences industry. In addition to creating technology that is secure, efficient, and accomplishes missions, USDS ignites long-term change by empowering the government to consistently deliver digital services to the American people. Throughout the past decade, USDS has worked with organizations to deliver real benefits to the American people.
Digital health is viewed as a broad topic in Canada that uses digital technologies (DTs) in clinical and community care to enhance health outcomes and offer person-centered care that is connected, simple, effective, and affordable. The Connected Care for Canadians Act (Bill C-72) was also introduced in Parliament in June 2024 and aims to expedite the development of the Pan-Canadian Interoperability Roadmap. This law promotes universal data standards for health IT systems in an effort to enhance patient safety, advance connected care, and improve health outcomes for Canadians.
Asia Pacific is estimated to host the fastest-growing next-generation AI in life sciences market during the forecast period. Rapid digital change and a growing tech ecosystem are making it easier for cutting-edge AI technology to be adopted and integrated into the healthcare industry in nations like China, India, Japan, and Singapore. The region's large and diverse population is driving the need for specialized healthcare solutions, making precision medicine all the more crucial in this evolving environment. Strong industry-academia partnerships and first-rate research facilities in the Asia Pacific region also help accelerate the development and implementation of generative AI applications that have the potential to significantly improve healthcare outcomes.
Over the past several years, China has made great progress in this area. China's evidence-based digital therapeutics (DTx) market, which encompasses non-prescription business-to-consumer products, pharmaceutical or medical technology cooperation products, and hospital-facilitated business-to-business products, is expected to be worth between $200 million and $250 million USD. Furthermore, by enacting laws that facilitate clinical implementation, regulation, and commercialization, the Chinese government has aggressively promoted the development of digital health. It believes there is a significant opportunity for advancement in digital health. Early DTx industrial clusters have developed as a result of the numerous businesses drawn to these initiatives.
A rapidly growing population and increasing demand for high-quality healthcare require the use of digital health technologies to increase accessibility, affordability, and efficiency. India's digital healthcare infrastructure is growing to bridge the gap between urban and rural healthcare institutions via the use of telemedicine, electronic health records (EHRs), and diagnostics powered by artificial intelligence (AI). Future research topics include blockchain-based medical records, AI-powered diagnostics, and enhanced cybersecurity guidelines.
Europe is expected to grow significantly in the next-generation AI in life sciences market during the forecast period. Supportive EU regulations, such as the AI Act and the European Health Data Space, ensure proper AI use while encouraging innovation. Development is being accelerated by substantial investment, notably billions from Horizon Europe and InvestAI. Furthermore, strong collaborations between governments, academic institutions, and tech companies are accelerating the adoption of AI, positioning Europe as a global leader in creating healthcare driven by AI.
In recent years, the German digital health market has grown dramatically, and companies like Climedo Health, Noventi Health SE, Dyrad Networks GmbH, and Avi Medical have achieved notable strides. While promoting a more patient-centered healthcare system, laws such as the EU's AI Act, Germany's DigiG (which allows ePA), the Hospital Transparency Act, and GDNG have the potential to increase the adoption of digital health.
The UK is renowned for its outstanding international development record and for being a global leader in digital innovation. Local CSOs and digital skilling providers ran digital literacy campaigns and provided specialized digital training to state government ministries. Additionally, country stakeholders received support for the Broadband Connectivity Expansion Strategy in line with the National Digital Economy Policy and Strategy 2020–2030.
In June 2025, according to Rajeev Rangachari, Chief Technology Officer of Trinity Life Sciences, GenAI has revolutionary potential in terms of economic value as it increases the ability of non-technical personnel inside life sciences firms to have an exponential effect. Use cases for particular life sciences operations, including Medical Affairs, Value and Access, or Field Sales, that were previously unfeasible owing to financial or technological constraints, are starting to gain popularity. (Source - Businesswire)
By Application
By AI Technology Type
By Deployment Type
By End User
By Therapeutic Area
By Data Source
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