NEW DELHI: Majority of leaders in life sciences -- pharmaceutical and medical technology companies -- and high-tech companies like semiconductor, electronic component, and original equipment manufacturing are increasingly expecting Artificial Intelligence (AI) to drive revenue management in 2025, according to a report on Wednesday.
The report by Model N, a revenue management solutions provider, reveals that while 87 per cent of industry leaders are shifting toward automated revenue management operations, nearly 60 per cent still rely on multiple solutions.
In addition, 62 per cent are using or planning to implement generative artificial intelligence (GenAI) for revenue optimisation activities, including deal analytics, process automation, and forecasting.
The report found that companies with more than 10, 000 employees are 51 per cent more likely than smaller organisations to use a unified revenue management solution.
“Life sciences and high-tech manufacturers are using advanced technologies to automate and optimize revenue operations with data-driven insights, ” said Suresh Kannan, Model N's Chief Product Officer.
“The report highlights the value of integrating GenAI for revenue management and transitioning to a unified solution. By harnessing AI and consolidating platforms, organisations can unlock greater revenue optimisation opportunities, boost efficiency, and drive growth, ” Kannan added.
Further, the medtech sector is also undergoing a similar transformation, the report said. Regulatory changes like healthcare price transparency (45 per cent) and the European Union’s implementation of the Medical Device Regulation (MDR) (40 per cent) top the list of impacts on revenue programmes.
Nearly two-thirds of MedTech companies are already seeing shifts as AI and automation are integrated into healthcare operations. About 38 per cent of leaders are also focusing on adapting to value-based care models, expecting further impacts on revenue optimisation functions.
Several high-tech are advancing their use of channel data -- in fact, 87 per cent of companies regularly use channel sales data to inform price management and optimisation processes. This industry leads in applying new technology to business processes, with 74 per cent of high-tech manufacturers planning to implement GenAI solutions -- the highest rate across industries, revealed the report.
Supply chain disruption continues to influence strategy, prompting 53 per cent of companies to diversify suppliers, 51 per cent to deploy new technologies, and half to implement sustainability initiatives.
In addition, 95 per cent of high-tech leaders express concerns about grey market sales, implementing measures such as removing unauthorised sellers and enhanced contract enforcement.