ISG Momentum® Strategic Perspectives - Win the Opportunity to Help Life Science Companies Apply AI to Improve Drug Discovery and Development
Artificial intelligence has made such progress in the Life Science industry that it is causing pharmaceutical companies to shift their focus for innovation. Many traditional IT and business service providers have already recognized the need to support this shift so that they can be a part of this tremendous market opportunity. The percentage of Life Science companies using AI soared from 44 percent in 2017 to 70 percent in 20191. For the drug discovery process alone, ISG identified more than 40 partnerships between AI startups and Life Science companies. At the same time, the total contract value from traditional outsourcing contracts with large pharmaceutical and healthcare clients declined by $1.6 billion between 2017 and 20192. At least some of this can be attributed to a greater focus on obtaining services from AI partners.
The outsourcing trend may reverse in 2020 because service providers are progressing with their AI and other innovation offerings for the Life Science sector. IT and business process service providers have achieved some impressive success stories in helping Life Science companies with AI initiatives. Providers have an advantage over startups in their ability to scale and provide comprehensive services. Their challenges include identifying the right use cases, developing targeted solutions and structuring the sourcing agreement for the way Life Science clients want to work together today and into the future.
This white paper provides insight into those challenges, briefly describes some drug discovery and development AI use cases and their value and provides guidance to help service providers engage with Life Science companies to build ongoing working relationships to support AI programs and other innovation initiatives.
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