Artificial Intelligence (AI) In Life Sciences Market expected to reach USD 5.650 billion by 2030

AI in Life Sciences Market Trends & Forecast

According to a research study published by Knowledge Sourcing Intelligence (KSI), the artificial intelligence (ai) in life sciences market will expand from USD 1.780 billion in 2025 to USD 5.650 billion in 2030 at a CAGR of 26.00% during the forecast period.

Life sciences companies are under mounting pressure to reduce R&D costs, improve productivity, and accelerate time-to-market for new therapies. Artificial Intelligence (AI) has emerged as a key enabler across this value chain, supporting drug discovery, clinical trial optimization, diagnostic insights, and the shift toward precision medicine.

In this market, AI tools are used not only to analyze vast volumes of structured and unstructured data, but also to uncover hidden biological relationships, generate mechanistic insights, and improve decision-making across research, development, and commercialization.

As the amount of health, genomic, imaging, and real-world data explodes, AI is becoming essential for turning raw information into predictive, actionable insights, making it one of the fastest-growing segments in healthcare technology.

AI in Life Sciences Market Report Highlights

• Among AI offerings in life sciences, the software segment accounts for the largest share due to its critical role in data processing, model development, visualization, and integration within existing R&D and healthcare IT systems. AI software platforms are used extensively for drug screening, biomarker identification, imaging analytics, and clinical data analysis. These solutions enable life sciences firms to process large-scale biological datasets, automate workflows, and improve decision accuracy. Within the AI products within the life sciences, the software category represents the highest proportion of the market, as it is essential to the various functions of data processing, model development, visualization, and integration into the existing R&D and healthcare IT infrastructure.
• The AI usage is most common in drug discovery, where machine learning and generative AI models have dramatically decreased the amount of time and money needed to find promising compounds and biological targets. AI enables virtual screening of millions of molecules, optimization of lead compounds, and prediction of drug–target interactions with unprecedented efficiency. Pharmaceutical companies increasingly rely on AI to accelerate early-stage research and reduce failure rates during clinical development, positioning drug discovery as the strongest demand segment within the market.

Report Coverage:

Report Metric	Details
AI in Life Sciences Market Size in 2025	US$1.780 billion
AI in Life Sciences Market Size in 2030	US$5.650 billion
Growth Rate	CAGR of 26.00%
Drivers	Growing Expenditure on Drug Discovery Increasing Patient Outcome Through AI Tools
Restraints	Data Privacy and Regulatory Compliance Complexity
Segmentation	Offering Application Geography
List of Major Companies in AI in Life Sciences Market	IBM Corporation Google Microsoft Corporation Concerto HealthAI Atomwise, Inc.

AI in Life Sciences Market Growth Drivers and Restraints

Growth Drivers:

• Growing Expenditure on Drug Discovery: Growing expenditure on drug discovery is predicted to accelerate the demand for AI in life science globally. Additionally, the high costs of drug discovery further support the use of AI in life sciences. Life sciences market players, therefore, deploy artificial intelligence technology to lower costs and increase the likelihood of success for drug discovery. Discovery consumes a significantly high proportion of the costs associated with it. Hence, decreasing cost and time in drug discovery & increasing clinical trial success rates are necessary and broadly influencing the usage of AI technology in this industry.
• Increasing Patient Outcome Through AI Tools: The increasing burden of life-threatening diseases, including cancer, is the key factor driving the global AI in life sciences market. These diseases are complex and need multiple active drugs for therapeutic effect. Since no single therapy proves effective in all patients, selecting an appropriate combination therapy is crucial. The increase in rare & orphan diseases across various countries also requires a focus on precision medication. Hence, the market of AI in life sciences is growing due to the rising manufacturing by pharmaceutical companies for precision medicine and personalized drugs.

Restraints:

• Data Privacy and Regulatory Compliance Complexity: One of the most critical restraints in the AI in life sciences market is strict data protection laws governing patient and genetic data, such as data localization, informed consent requirements, and cross-border data sharing restrictions. AI algorithms depend heavily on large volumes of real-world clinical data, but pharma companies and research organizations face legal risk when using sensitive patient records due to compliance frameworks such as health data protection rules. These policies slow down artificial intelligence adoption due to lengthy approval cycles, audits, and uncertainty over permissible data usage.

AI in Life Sciences Market Key Development

• Product Launch: In October 2025, Anthropic Launches “Claude for Life Sciences”. Anthropic unveiled Claude for Life Sciences, an AI-assistant offering that supports researchers across the full pipeline from literature review and hypothesis generation through data analysis and regulatory-submission drafting integrating with lab-platform tools like Benchling, 10x Genomics, PubMed and BioRender.
• Company Expansion: In June 2025, IQVIA Launched AI Agents for Life Sciences & Healthcare. IQVIA introduced new custom-built AI agents running on NVIDIA technology (using NeMo Customizer, Guardrails, and NIM Agent Blueprints) designed to accelerate workflows in life sciences such as target identification, clinical-data review, literature review, and HCP engagement.

AI in Life Sciences Market Segmentation

Knowledge Sourcing Intelligence has segmented the AI in Life Sciences Market based on offering, application and region:

AI in Life Sciences Market, by Offering

• Hardware
• Software
• Services

AI in Life Sciences Market, by Application

• Drug Discovery
• Clinical Trials
• Medical Diagnosis
• Personalized Medicine
• Others

AI in Life Sciences Market, By Region

• North America
  • USA
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Others
• South America
  • Brazil
  • Argentina
  • Others
• Middle East and Africa (MEA)
  • Saudi Arabia
  • UAE
  • Others

AI in Life Sciences Market Key Players

• IBM Corporation
• Google
• Microsoft Corporation
• Concerto HealthAI
• Atomwise, Inc.
• CytoReason
• Accenture
• IKTOS
• AiCure
• NuMedii Inc
• NVIDIA Corporation
• A2A Pharma