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New Delhi, February 6, 2025: A significant majority of leaders in the life sciences sector, including pharmaceutical and medical technology companies, as well as high-tech industries such as semiconductor and electronic component manufacturing, expect Artificial Intelligence (AI) to play a crucial role in revenue management in 2025, according to a report released on Wednesday.
The report, published by revenue management solutions provider Model N, indicates that 87 per cent of industry leaders are transitioning towards automated revenue management operations. However, nearly 60 per cent still depend on multiple revenue solutions, suggesting room for greater consolidation and efficiency.
Growing Adoption of AI in Revenue Optimisation
With 62 per cent of companies either already using or planning to deploy generative artificial intelligence (GenAI) for revenue optimisation activities, AI-driven tools are becoming a key component in deal analytics, process automation, and forecasting.
Notably, large enterprises with more than 10,000 employees are 51 per cent more likely to integrate a unified revenue management solution than smaller firms, reflecting a growing trend toward streamlining financial processes through advanced technologies.
“Life sciences and high-tech manufacturers are leveraging AI to automate and optimize revenue operations using data-driven insights,” said Suresh Kannan, Chief Product Officer at Model N. “The report underscores the benefits of integrating GenAI for revenue management, which helps businesses unlock greater revenue potential, enhance efficiency, and accelerate growth.”
MedTech Sector Embracing AI Amid Regulatory Changes
The medical technology sector is experiencing a parallel transformation. According to the report, regulatory shifts such as healthcare price transparency (45 per cent) and the European Union’s Medical Device Regulation (MDR) (40 per cent) are significantly influencing revenue programs.
Nearly two-thirds of MedTech firms have already observed substantial changes as AI and automation become more embedded in healthcare operations. Additionally, 38 per cent of industry leaders are prioritizing adaptation to value-based care models, which are expected to further impact revenue optimisation strategies.
High-Tech Industry Leading in AI Implementation
In the high-tech sector, AI integration is also on the rise. Around 87 per cent of companies actively utilize channel sales data to refine price management and optimisation strategies. Moreover, 74 per cent of high-tech manufacturers plan to adopt GenAI solutions—the highest adoption rate across industries—showcasing the sector’s commitment to digital transformation.
Supply chain disruptions remain a significant concern, with 53 per cent of companies diversifying suppliers, 51 per cent implementing new technologies, and 50 per cent initiating sustainability measures to mitigate risks. Additionally, 95 per cent of high-tech leaders express apprehensions about grey market sales, prompting stronger enforcement actions such as removing unauthorized sellers and tightening contractual oversight.
Disclaimer: This article is based on the findings of a report by Model N. The statistics and insights provided are as per the published study and may be subject to further validation or industry updates.
