A new report has revealed that 83% of life sciences CEOs view Internet of Medical Things (IoMT) devices as the most important capability towards driving growth, accelerating R&D, and unlocking operational efficiencies for their business in the next three years.
KPMG’s 2025 Global Life Sciences CEO Outlook report surveyed 110 life sciences CEOs across countries, including the US, Japan, Germany, the UK, and Canada. Pharma CEOs represented the largest segment of respondents at 57%.
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IoMT placing in the top spot meant it beat other technologies such as AI. Ranging between 75% to 80%, the next most important future capabilities to respondents after IoMT were agentic AI, AI in products and services, biomimetic devices, and privacy-enhancing technologies.
Commenting on these findings, Kristin Ciriello Pothier, Americas region and US head of life sciences at KPMG, said: “The focus on multi-omics illustrates the importance many life sciences organisations are placing on the creation of multi-faceted innovative therapies.
“Yet they are also clearly prioritising AI and agentic AI to drive efficiency and scale. It’s that careful balance between innovation and cost effectiveness that is really driving decision-making in the sector today.”
When asked about challenges affecting their short-term decision-making, 28% of respondents cited integration of AI into the organisational processes and systems as a topmost concern, followed by supply chain resilience and technological disruption at 25% apiece.
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By GlobalDataAI investment plans despite hurdles
Despite the reported challenges around AI integration, 73% reported plans to invest 10% to 20% of their technology budgets in AI, with 22% anticipating returns on their AI investments within a year and 65% within the next one to three years – findings that suggest strong progress in integrating AI into operations, according to KPMG.
According to GlobalData analysis, AI in healthcare is forecast to reach a $19bn market valuation by 2027.
Asked about the top benefits of integrating AI in their organisation, 25% cited enhanced decision-making and data analysis capabilities, followed by increased efficiency and productivity and increased profitability at 17% and 14%, respectively.
“While the primary focus of recent AI investments has largely been on operational efficiency, leaders are scaling up their initiatives to unlock value far beyond headcount rationalisation or cost efficiencies,” noted Peter Liddell, ASPAC region head of life sciences, principal adviser and head of healthcare and life sciences, and global leader of operations centre of excellence for KPMG in Singapore.
M&A optimism
Elsewhere in the report, 83% said they were optimistic about the life science industry’s growth prospects, with 86% expressing that they had a moderate-to-strong appetite for M&A over the next three years.
Liz Claydon, global head of life sciences and deal advisory at KPMG International, commented: “Life sciences leaders are becoming more selective and disciplined about M&A by looking for sustainable value and long-term performance rather than short-term gains. This means having the right market focus in addition to a clear strategy and the right capabilities for unlocking value creation and driving transformation.”
In the report’s executive summary, KPMG concluded that the report suggests near-term growth across the life sciences industry will come from a “combination of innovation and efficiency”.
