AI in Life Sciences Market Size, Share, and Trends 2025 to 2034

AI in Life Sciences Market Size Trends Analysis and Forecast till 2034

The global artificial intelligence (AI) in life sciences market size was accounted for USD 2.45 billion in 2024 and is anticipated to hit around USD 15.46 billion by 2034, growing at a CAGR of 20.23% from 2025 to 2034.

Key Takeaways 

• By offering, the software segment dominated the market in 2024.
• By offering, the services segments is estimated to be the fastest-growing segment during the forecast period.
• By deployment, the cloud segment led the market as of this year.
• By deployment, the on-premise segment is expected to grow at the fastest rate during the forecast years.
• By application, drug discovery was the dominant segment in the market as of this year in 2024.
• By application, the clinical trials segment is expected to grow at the fastest rate.
• By region, North America held the largest market share in 2024.
• By region, Asia-Pacific is seen to grow at the fastest rate throughout the forecast period.

What is AI in Life Sciences?

AI in life sciences is a transformative field that is completely reshaping the landscape of research, diagnosis, and treatment. It is being applied across various sectors, including drug discovery, clinical research, diagnostics and personalized medicine. AI technologies are gaining traction in this field as they are capable of processing vast amounts of information at much faster speeds, identifying patterns and insights that human researchers might otherwise miss. This market encompasses various subfields as well, including predictive modeling, automated screening, de novo drug design, and much more. These technologies are revolutionizing the way we understand and interact with biological systems.

What are the Key Trends in the Market?

• Increased Computational Power and Data Availability: The market is witnessing exponential growth in data and computing power, which has enabled the development and application of sophisticated AI algorithms.
• Cloud Computing: Cloud computing has made AI technologies more accessible and cost-effective, making widespread adoption possible.
• Government Initiatives: Governments worldwide are investing heavily in AI research and development, which is helping in boosting innovation and adoption.
• Growing Demand for Efficient Healthcare Solutions: AI tools and systems have the potential to significantly improve healthcare outcomes while simultaneously reducing costs, which gives rise to effective healthcare solutions.
• AI-driven Drug Repurposing: AI is also being leveraged to identify existing drugs, which can then be used to treat new diseases.
• Integration with Other Technologies: AI is being increasingly integrated with other technologies like IoT and blockchain for a more improved healthcare delivery.

What is the role of AI in this field?

AI is playing a crucial role in the life sciences domain by revolutionizing drug discovery, diagnostics and personalized medicine. AI enables the analysis of vast amounts of biological data, which leads to faster identification of new drug targets and more effective and efficient clinical trials. AI also enhances genomic research, tailors cancer treatment and helps to manage chronic diseases by providing personalized recommendations. The integration of AI in life sciences is expected to drive significant growth and innovation in the upcoming years, making it a key area of focus.

One of the most significant impacts of AI is in the drug discovery sector. Traditional drug development can be quite time-consuming and is an expensive process, often taking over billions of dollars to bring a new drug to market. AI algorithms can now analyze biological data at unprecedented speeds, identifying potential drug candidates at a much faster rate, thus streamlining the initial screening process.

AI is also transforming the field of genomic research by enabling the analysis of complex genetic data. Machine learning algorithms are now able to identify genetic variants associated with diseases, helping researchers understand the genetic basis of conditions like cancer, diabetes and neurodegenerative disorders. This not only helps researchers and medical personnel in identifying potential therapeutic targets, but also helps to develop more personalized medicine approaches.

Report Scope of AI In Life Sciences Market

Market Dynamics

Driver

Rise of Efficient Drug Discovery Solutions

One of the key drivers propelling the market forward is the growing need for efficient drug discovery and development processes. Another is the demand for personalized and precision medicine. AI’s ability to analyze vast amounts of biomedical data and improve patient outcomes through early disease detection and treatment is a crucial aspect. The growing adoption of AI-driven solutions by pharmaceutical companies, healthcare providers, and research institutions further boosts the market’s growth.

In addition to that, increased investments from pharmaceutical companies and government initiatives supporting AI research and development lead to market expansion. AI's capabilities in streamlining clinical trials, optimizing supply chain management and enhancing decision-making processes are accelerating its adoption even more.

Restraint

Bias in Data Sets and Ethical Concerns

Despite immense potential of AI in life sciences is immense, the market does face a few challenges. One such challenge is the quality and bias of the data that is used to train AI models. If the data is not representative in nature or contains biases, the AI’s predictions and recommendations can be incorrect or flawed.

Ethical considerations are also another restraint slowing down market growth. The use of AI in healthcare raises questions about patient privacy, data security and informed consent. It is a necessity to establish clear guidelines and regulatory frameworks in order to promote widespread adoption and development.

Opportunity

Technological Advancements

Ongoing advancements in the market are poised to revolutionize research and diagnostics and bring new opportunities in the market. Personalized medicine and targeted therapies are potential areas of growth and development. AI-driven approaches can now optimize drug discovery and development processes. Predictive analytics and decision support systems help in enhancing healthcare delivery and patient outcomes. It also facilitates precision diagnostics and early disease detection and smoothly integrates with emerging healthcare trends like telemedicine and wearable devices.

The adoption Of deep learning and neural networks is another such key opportunity. The AI-powered drug discovery platforms are emerging as a significant development. Another trend is the use of natural language processing for clinical documentation and medical literature analysis.

Segmental Analysis

By Offering Insights

Which offering segment dominated the market in 2024?

The software segment dominated the market in 2024. This is due to the rising penetration of the software owing to the rising need for storing, managing, analyzing, and sharing data in the drug discovery and development. The growing need for the big data analytics is also boosting the demand for the AI software. Since this segment generates recurring revenue stream for the market players over a long period of time, it has become one of the largest revenue contributor to the AI in life sciences market.

The services is expected to be the fastest growing segment during the forecast period. The lack of knowledge regarding the operation of AI based hardware and software among the life science professionals is boosting this segment’s demand, especially for the third-party service providers that supply technically equipped staffs in order to operate the expensive AI systems.

By Deployment Insights

Which deployment segment led the market as of this year?

The cloud segment led the market as of this year in 2024. This dominance is due to the growing penetration of internet, development of innovative cloud-based services, rising investments in the development of IT and telecommunications infrastructure and ease of operations associated with the cloud based servers.

The on-premise segment is anticipated to grow at the fastest rate during the forecast period. This segment supports internal system integration, enables custom feature requests and also incorporates hardware capabilities. Users can fully control security measures and customize IT configurations in order to meet their specific cybersecurity needs. This segment also allows users to directly configure backup schedules and policies and design backup techniques and data strategies accordingly, making it popular and convenient.

By Application Insights

Which application held the largest market share in 2024?

The drug discovery segment held the largest market share in 2024. This is due to rising prevalence of various chronic and gene related diseases, which is in turn, leading to increased investments in drug discovery and development. Key global pharma and biotech companies are constantly focusing on drug discovery activities with aims to develop new and innovative drugs for the treatment of various chronic diseases like cancer, diabetes, cardiovascular diseases, musculoskeletal diseases, and infectious diseases.

The clinical trials segment is seen to grow at the fastest rate throughout the forecast period. The surging number of drug discovery activities is boosting the number of clinical trials all across the globe, which is resulting in the generation of huge volume of data. The generation of such huge amount of data and rising availability of these data on the public domain is accelerating the adoption of this segment among the various academic and research institutions.

By Regional Analysis

Why is North America dominating the market?

North America dominated the market in 2024. This dominance is due to the high demand for AI technology across various diverse life science applications. Additionally, the region has a strong presence of leading pharmaceutical and biotech firms, especially in the US. Significant investments by US-based pharmaceutical companies in drug discovery and clinical trials have also increased the demand for AI in life sciences. Through these factors, we can see how North America has successfully positioned itself as a key leader and competitor in today’s market.

What are the advancements in Asia-Pacific?

Asia Pacific is expected to witness the fastest growth rate during the forecast period. This growth is driven by increased investments in AI software and hardware by research entities aiming to enhance operational efficiency. The region also has an abundance of top research organizations which fuels market expansion even more. Major players in the region are seen focusing on adoption of AI based analytical tools in order to enhance the operation efficiency and boost market growth.

Some of The Prominent Players in The AI In Life Sciences Market Include:

• IBM Corporation
• Atomwise, Inc.
• Nuance Communications, Inc.
• NuMedii, Inc.
• AiCure LLC.
• APIXIO, Inc.
• Insilico Medicine, Inc.
• Enlitic, Inc.
• Sensely, Inc.
• Zebra Medical Vision

Recent Developments 

• In September 2025, Inovalon launched a new data and analytics offering on Snowflake's AI Data Cloud for Healthcare & Life Sciences. This partnership provides payers and life sciences organizations secure, near real-time access to Inovalon's primary source data and advanced analytics. This seamless integration reduces IT overhead, accelerates data refresh by 4-9 days, and enhances care quality, risk management, and operational efficiency.
• In April 2025, Axtria, Inc. launched its next generation of Axtria InsightsMAx. Powered by agentic AI, the new Axtria InsightsMAx.ai fundamentally reimagines how life sciences organizations harness artificial intelligence through a flexible enterprise-grade platform that accelerates experimentation, deployment and ROI. The platform is also powered by domain-tuned large language models (LLMs) developed in partnership with Genloop, delivering superior performance with enhanced control and transparency.

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2034. For this study, Nova one advisor, Inc. has segmented the AI in life sciences market.

By Offering

• Software
• Hardware
• Services

By Deployment

• On Premise
• Cloud

By Application

• Medical Diagnosis
• Drug Discovery
• Precision and Personalized Medicine
• Biotechnology
• Clinical Trials
• Patient Monitoring

By Regional

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)