Life science organizations are expected to increase their gen AI budgets. According to a McKinsey survey of pharma and medtech leaders, the share of companies spending $5 million or more on gen AI is expected to grow from 20 percent in 2024 to 32 percent in 2025, note Senior Partner Delphine Nain Zurkiya and colleagues. The proportion of organizations spending less than $5 million is expected to decrease from 70 percent in 2024 to 56 percent in 2025.
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A stacked bar chart shows projected generative AI budgets in life science organizations, comparing respondent estimates for 2024 with respondent forecasts for 2025. The chart is broken down into 5 budget ranges: $10 million+, $5 million–$10 million, $1 million–$4.9 million, less than $1 million, and “don’t know.” In 2024, the largest proportion of respondents (43%) reported budgets of less than $1 million. This is followed by 27% with budgets of $1 million–$4.9 million. For 2025, the proportion of respondents reporting budgets of less than $1 million is predicted to decrease to 35%, and the proportion of respondents with budgets of $1 million–$4.9 million is projected to decrease to 21%, while those in the higher budget categories increase. For example, 20% of respondents forecast budgets of more than $10 million in 2025, up from 13% in 2024.
Note: This image description was completed with the assistance of Writer, a generative AI tool.
Source: McKinsey State of Gen AI in Life Sciences Survey, Aug 23–Sept 18, 2024 (n = 82).
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To read the article, see “Scaling gen AI in the life sciences industry,” January 10, 2025.