In 2024, our Life Sciences Index, Tech Index and "Predictions for Life Sciences in 2025" all highlighted the growing role of technology in the life sciences sector.   As we enter 2025,  this technological transformation is only set to accelerate, thanks to rapid advancements in areas such as semiconductor chips, artificial intelligence (AI) and cloud computing. These innovations are reshaping the way in which the life sciences ecosystem operates, from R&D and commercialisation, through to diagnosis, treatment and monitoring, operational and financial efficiency, and the regulatory and compliance dynamics that span all of these steps in the value chain. 

This article considers the key themes highlighted in our Life Sciences and Tech Index reports and explores the multi-faceted impact of technological advancements on the sector and the role these innovations will play over the next 12 months.

Artificial Intelligence: Accelerating Research and Development

In our Life Sciences Index 2024 report, just over a third of respondents said that AI and machine learning (ML) – intelligent technology - was a strategic priority for their business.  But since the GenAI boom, many businesses have been grappling with how best to unlock its potential, not having or being able to readily access the infrastructure needed to capitalise on the huge amounts of proprietary data these businesses generally sit upon. 

As we enter a new quarter-century, we predict that the use of intelligent technology will increase rapidly, as businesses increasingly harness it across their value chains. One of the areas of particular focus is in R&D. AI algorithms can analyse vast datasets to predict molecule interactions, identify and optimise potential drug candidates, simulate the patient response to specific treatments, and streamline clinical trials, This increased use of in silico vs. in vivo testing has numerous benefits including time and cost efficiencies, a reduction in the use of animal models, improvement in the safety of human studies. Ultimately, this means safer, more efficacious innovations reach the market – and the people who need them – faster.   

From a regulatory perspective, using AI in drug discovery, research and early stage clinical trials carries a lower risk categorisation under the EU AI Act (by contrast to, for example, use in medical devices, which is categorised as high-risk as a result of  being an AI system with a safety function) and so we envisage that it is these use cases that will be a focus for many life sciences businesses, looking to optimise and improve the efficiency of getting new products to market.  To really capitalise on these opportunities, businesses will need to put in place the governance and risk management strategies to allow for AI-based innovation, with executives working closely with legal, privacy and IT teams to define clear AI organisational strategies and risk tolerance. 

Furthermore, AI is transforming the field of genomics. Advanced AI algorithms can analyse vast biological datasets to identify genetic mutations and variations associated with diseases. This enables researchers to develop more precise and personalised treatments that offer improved clinical outcomes for patients,  but clearly comes with significant data privacy risks that need to be identified and managed. 

Real-world Evidence: Enhancing Decision Making

Data analytics – and, alongside it, data monetisation – were identified as key areas for innovation in both our Life Sciences Index and Tech Index reports. 

Real-world evidence (RWE) involves the collection and analysis of data from real-world settings, such as electronic health records, patient registries and wearable devices. This data provides insights into how treatments perform in diverse patient populations outside the controlled environment of clinical trials and can also aid the evolution of products by providing continuous real-world data on treatment performance over long periods. In 2025, we predict increased leveraging of RWE to complement traditional clinical trial data, leading to more informed decisions and optimised treatment protocols. It is also likely to be increasingly utilised by regulators to make more informed decisions about the safety and efficacy of treatments over time.  This plays into and supports efforts to harmonise regulation.

As identified in our latest Tech Index, the huge potential benefits that come from monetising data are, as yet, largely untapped, with many businesses citing regulatory concerns as a key roadblock.  However, our most sophisticated clients see that putting data gathered for one purpose to work in another context can be increasingly powerful.  For those life sciences businesses prepared to invest in the use of data scientists, doing so will allow businesses to structure and consolidate data more effectively, allowing greater utility across the enterprise, but particularly in the context of RWE and its role in product development and lifecycle management.

Nanosensors and AI-Powered Imaging: Advancing Diagnostics and Treatment

Technological innovations in nanosensors and AI-powered imaging are revolutionising diagnostics and treatment options. Nanosensors, which can detect molecular changes at the nanoscale, are used increasingly for early disease detection and monitoring. AI-powered imaging technologies enhance the accuracy and speed of diagnostic imaging, enabling earlier and more precise interventions. In 2025, these technologies are likely to evolve and be particularly impactful in fields like oncology, where early detection and targeted treatments are crucial.

AI-powered imaging technologies are also transforming the field of diagnostics. AI algorithms can analyse medical images from X-ray, MRI and CT systems to identify abnormalities and diagnose diseases in increasingly fast and precise ways. 

Moreover, AI-powered imaging is enhancing the precision of surgical planning. For example, AI algorithms can analyse imaging data to create detailed 3D models of tumours, enabling surgeons to plan and perform complex surgeries with greater accuracy and improved clinical outcomes.

Just over 12 months on from the world's first regulatory approval of a therapy based on CRISPR-Cas9 gene-editing technology (by the UK’s Medicines and Healthcare products Regulatory Agency;MHRA), we are likely to see the development of this technology in combination with nanosensors. Nanosensors can detect the specific DNA sequences that require editing by CRISPR-Cas9 technology, deliver it to the target cells, and monitor the effects of the resulting genetic edits in real-time. As identified in our Predictions for Life Sciences in 2025 article, we expect genomic-related advances to continue to come thick and fast through 2025 and beyond. Our Genomics Series gives a deeper insight into the genomics revolution. We envisage many businesses looking to this as a key area for collaboration, whether you're a traditional global life sciences innovator, a biotech, techbio or traditional tech player..  This may be by way of joint ventures or looser partnerships and In our Life Sciences Index 2024 report, 49% of respondents predicted an increase in deal activity in the sector, with strategic collaborations for R&D considered the most important deal type for incentivising innovation and business growth, followed by in-licensing and tuck-in deals.  Genomics could also be an area ripe for M&A as businesses look to fast-track innovation in this space and seek a first-mover advantage.

Healthtech: Wearables and Remote Patient Monitoring to Increase.

Within the life sciences and consumer goods sectors, the adoption of wearable devices is on the rise as we continue to transition from an "illness and treatment" mindset, to a "prevention and wellness" one, facilitated by data and intelligent technology. Forty-eight percent of respondents to our Life Sciences Index 2024 survey said that health and wellness tracking is the healthtech application  with the biggest opportunities for growth in the life sciences industry. In 2025 we foresee increased use of wearables in healthcare delivery to improve remote patient monitoring, allowing for earlier diagnoses and more dynamic treatment management. 

Whilst there are data privacy concerns associated with wearables, the success of wearable devices such as continuous glucose monitors for diabetes management, show that patients are more willing to embrace this kind of technology where they can see clear health and lifestyle benefits. 

Nevertheless, businesses have to demonstrate to patients that their health data is secure. The increased use of connected devices also carries an increased cybersecurity risk and it's never been more important for businesses to be prepared for operational, legal and reputational risks associated with an incident. In the EU, life sciences companies for the first time find themselves part of "critical national infrastructure" under the bloc's NIS2 cybersecurity rules, which will continue to be transposed by Member States throughout the year.  Key obligations include minimum cybersecurity risk framework measures, incident reporting, and accountability for the 'management body'. Meanwhile, European companies will also begin preparing for the product-orientated Cyber Resilience Act, which applies from 2027, although medical device manufacturers are exempt, they are not exempt from the Data Act, which applies from September 2025 and which, amongst other things, raises cybersecurity concerns through the requirement to provide all data generated by the device to the user, or to nominated third parties.

It is also true that the data that can be collected, pseudonymised and aggregated from the use of wearables and remote patient monitoring (RPM)is a rich resource for businesses to channel back into business decision-making. Getting the data collection aspects of this correct is critical to ensure the data can be monetised effectively. 

Again, this appears likely to be a key area for collaboration between life sciences, consumer goods and tech players.

Conclusion

It is unquestionable that technology will continue to drive change and innovation in the life sciences sector in 2025 and beyond. This transformation is set against the backdrop of a fast-evolving and often fragmented regulatory framework which seeks to keep pace with the speed at which technology is advancing. This makes it extremely challenging for businesses to navigate and manage risk. Despite this, businesses will continue to push scientific and technological boundaries to transform the way healthcare is delivered. For the benefit of all stakeholders in the life sciences ecosystem, but most importantly the patient.