Next Generation AI in Life Sciences Market Revenue and Forecast By 2033

25 Sep 2025

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Table of Content

1. Next Generation AI in Life Sciences Market Revenue and Trends 2025 to 2033 2. What is Next-Gen AI in Life Sciences? 3. Segment Insights: 4. Regional Insights: 5. Next Generation AI in Life Sciences Market Coverage

Next Generation AI in Life Sciences Market Revenue and Trends 2025 to 2033

The global next generation AI in life sciences market is transforming drug discovery with advanced AI solutions driving growth and innovation globally. This market is growing as life sciences organizations are increasingly applying advanced artificial intelligence, especially generative Artificial Intelligence , ML, and cloud computing, to accelerate drug discovery, optimize clinical trials, enhance diagnostics, and deliver personalized medicine, all of which reduce time, cost, and risk in R&D.

What is Next-Gen AI in Life Sciences?

Next-generation AI in life sciences refers to advanced artificial intelligence technologies that enable more precise, efficient, and predictive approaches in drug discovery, diagnostics, personalized medicine, and clinical decision-making. AI agents with natural language interfaces are making computational tools and datasets more accessible, enabling researchers of all skill levels to utilize these resources and accelerate their work. Several key factors are driving the growth of next generation AI in life sciences market. The explosion of genomic, proteomic, imaging, and omics datasets necessitates AI analytics to efficiently manage vast, complex, and varied biological data.

Pharmaceutical and biotech companies are increasingly turning to AI-powered tools for virtual screening, molecular design, and safety prediction to reduce the timelines and costs associated with drug development. Supportive regulations and funding further incentivize technology companies, academic institutions, and drug developers to adopt AI-enabled platforms. Advancements in computing power and algorithm development are making sophisticated AI applications more deployable and practical.

Segment Insights:

• By application area, the drug discovery and development segment dominated the market in 2024. This is mainly due to AI's ability to significantly accelerate target identification, molecule screening, and predictive modeling, reducing both time and cost.
• By technology type, machine learning is the dominant segment in the market due to its adaptability across various life sciences applications and its ability to continuously improve outcomes with additional data.
• By end user, the pharmaceutical & biotechnology companies segment led the market in 2024 due to their high investments in AI platforms to reduce the time for R&D, improve success rates when tracking R&D efforts, and manage regulatory challenges. 
• By deployment mode, the cloud-based segment dominated this market in 2024, owing to its high scalability, cost-effectiveness, and flexibility. Cloud platforms enabled real-time collaboration, faster data processing, and easier integration of AI tools, making them the preferred choice for pharma, biotech, and research institutions seeking cost-effective and agile AI deployment.

Regional Insights:

North America registered dominance in the next generation AI in life sciences market, holding the largest share in 2024. This is primarily due to its robust life sciences ecosystem, substantial R&D investment, favorable regulatory environments for AI, and the involvement of major tech companies in both AI and life sciences. Additionally, collaborations between tech firms and life sciences organizations further accelerated AI adoption across drug discovery, diagnostics, and clinical trials in the region.

Asia Pacific is projected to experience rapid growth during the forecast period. This growth is fueled by increasing government funding for R&D, expanding biotechnology sector, improved cloud and AI infrastructure, and rising demand for precision diagnostics and affordable therapies. Government initiatives supporting digital health, rising R&D activities, and the need for cost-effective and scalable AI solutions in drug development further propel regional market growth.

Next Generation AI in Life Sciences Market Coverage

Recent Development:

• On 9 September 2025, Eli Lilly and Company launched Lilly TuneLab, an AI/ML platform. This platform provides biotech companies access to drug discovery models trained on years of Lilly's research data. 
  (Source- https://investor.lilly.com)

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