PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1927696
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1927696
AI in Life Science Analytics Market size was valued at US$ 2,105.3 Million in 2024, expanding at a CAGR of 11.45% from 2025 to 2032.
The AI in Life Science Analytics market primarily involves utilizing AI (such as machine learning, NLP, and various generative AI tools) to process the vast amount of data that life science companies encounter and to make informed decisions more efficiently. Pharma and biotech companies collect data from a lot of places like genomics/omics research, lab experiments, clinical trials, safety reports, scientific papers, and real-world data such as EHRs and insurance claims. The problem is that this data is messy and spread out, and a lot of it is unstructured (for example, doctor notes or medical literature). AI helps by finding patterns, predicting outcomes, and automating parts of analysis that would take humans way longer. That's why it's being used more in things like drug discovery, clinical trial planning and patient recruitment, pharmacovigilance (detecting side effects), real-world evidence studies, precision medicine, and even sales forecasting and supply chain analytics.
AI In Life Science Analytics Market- Market Dynamics
Surging Government-Backed R&D Funding and Clinical-Trial Volume Are Accelerating AI Adoption in Life Science Analytics
One big driver for the AI in Life Science Analytics market is that governments are putting more money into biomedical R&D, and, at the same time, the number of clinical studies being run and tracked keeps increasing so the amount of data researchers have to deal with is getting huge, and AI analytics becomes a practical need rather than a "nice to have." According to the U.S. National Institutes of Health (NIH), the NIH budget authority was $47.5 billion in FY2023 and increased to $48.6 billion in FY2024, which supports a lot of large research programs that generate complex datasets (like genomics and clinical data) that typically require advanced analytics. Also, according to the U.S. Government Accountability Office (GAO), NIH obligations for AI-related research rose from about $1.5 billion in FY2018 to about $2.3 billion in FY2022, showing that government-backed AI activity in health and science is expanding and creating more real use cases for AI tools. On the clinical research side, According to ClinicalTrials.gov (U.S. National Library of Medicine, U.S. government), there were over ~477,000 registered studies in 2023, and this went above ~500,000 studies by 2024, which basically shows how fast clinical research is scaling up; with that many studies, organizations need AI analytics to handle tasks like sorting patient data, monitoring safety signals, and finding insights faster. Overall, these 2022-2024 government-reported numbers point to a clear trend: more funded research plus more trials equals more data, and that directly boosts demand for AI-based life science analytics.
Clinical trials and cloud-based deployment are two segments that strongly support demand in the AI in Life Science Analytics market because both are tied to fast-growing data volumes and the need for scalable computing. Clinical research activity keeps expanding, and that directly increases the amount of structured and unstructured trial data that must be cleaned, monitored, and reported. According to ClinicalTrials.gov (U.S. National Library of Medicine), the registry crossed 500,000+ registered studies in 2024 (rising from the high-400,000s in 2023), which signals a steady increase in trial records and related documentation where AI analytics is commonly used for feasibility, patient matching, protocol monitoring, and faster insight generation. Drug-safety monitoring adds another large data stream connected to trials and post-market surveillance; according to the U.S. Food and Drug Administration (FDA), the FDA Adverse Event Reporting System (FAERS) has been receiving over 2 million adverse event reports per year in recent years across the 2020s, creating ongoing demand for AI-driven case processing, duplicate detection, and signal detection to manage scale.
At the same time, cloud-based deployment fits life science analytics because it provides flexible storage and compute for large datasets and model training; according to the U.S. National Institute of Standards and Technology (NIST), federal cloud guidance and definitions (including publications actively referenced through 2020-2024, such as SP 800-145 and related cloud security guidance) continue to formalize baseline expectations for cloud usage and security, supporting broader adoption of cloud environments for regulated analytics workloads. Overall, rising clinical study counts, high safety-report volumes, and standardized cloud frameworks together support stronger use of AI analytics across life science workflows between 2020 and 2025.
AI In Life Science Analytics Market- Geographical Insights
North America remains one of the most attractive regions for AI in life science analytics because the region combines high research spending, large clinical research activity, and mature digital infrastructure for regulated health data. According to the U.S. National Institutes of Health (NIH), NIH budget authority increased from $42.9 billion (FY2021) to $45.0 billion (FY2022), then to $47.5 billion (FY2023) and $48.6 billion (FY2024), which supports a huge amount of data-producing biomedical research that typically needs automation and advanced analytics. Clinical research volume is also a strong signal of analytics demand; according to ClinicalTrials.gov (U.S. National Library of Medicine), the registry exceeded 500,000+ studies by 2024, highlighting the scale of trial-related datasets where AI tools are used for feasibility analytics, patient identification support, monitoring, and reporting. Post-market and safety data add even more pressure on analytics workflows; according to the U.S. Food and Drug Administration (FDA), the FDA Adverse Event Reporting System (FAERS) receives more than 2 million adverse event reports per year in the 2020s, which increases the need for AI-driven case processing and signal detection.
United States AI in Life Science Analytics Market- Country Insights
The United States is typically viewed as the strongest single-country opportunity in this market because government-backed spending and regulated data streams are unusually large and consistent. According to the NIH, budget authority reached $48.6 billion in FY2024, continuing growth from $45.0 billion in FY2022, and supporting research networks that generate large-scale clinical and omics datasets. Research activity is also reflected in clinical trial scale; according to ClinicalTrials.gov, total registered studies crossed 500,000+ in 2024, which supports steady demand for analytics across trial planning, operational oversight, and outcome analysis. Safety reporting volumes further strengthen the business case for automation; according to the FDA, FAERS receives 2 million+ reports annually in the 2020s, creating ongoing demand for AI that can triage cases, find patterns in narrative text, and support faster detection of safety signals.
The competitive landscape is shaped by the ability to manage regulated data at scale, connect multiple life science datasets, and deploy AI models in production with audit-ready governance. Major vendors typically referenced in this space include SAS (strength in statistical analytics and governance for regulated environments), IBM (strength in enterprise AI and NLP for unstructured text analytics), Oracle (strength in life-science data systems and scalable cloud infrastructure), Microsoft (strength in enterprise cloud and AI services with security controls), AWS (strength in elastic compute and data services for large-scale analytics), Google Cloud (strength in data engineering and AI/ML tooling at scale), IQVIA (strength in real-world data/real-world evidence and commercial analytics), and Veeva (strength in life-sciences workflows and commercial content/data management). Strong public indicators reported between 2020-2025 including rising NIH funding according to NIH, growing trial registration totals according to ClinicalTrials.gov, and high annual safety-report inflow according to FDA tend to favor vendors that can deliver compliant analytics, support high-volume pipelines, and integrate across clinical, safety, and R&D environments.
In December 2025, Medicus Pharma Ltd., a precision-guided biotech/life sciences company, announced a non-binding letter of intent (LOI) with Reliant AI Inc., a life-sciences decision-intelligence company focused on generative AI, to work on an AI-powered data analytics platform aimed at improving clinical trial execution using data-driven insights, with planned capabilities such as dynamic site selection, patient stratification, and enrollment forecasting, and an initial focus on dynamic site selection and targeted stratification for an upcoming Teverelix clinical study expected to begin in 2026.
In June 2025, IQVIA, a global provider of clinical research services, commercial insights, and healthcare intelligence for life sciences, unveiled new custom AI agents at GTC Paris built using NVIDIA technology to improve workflows and speed up insights, with use cases highlighted across target identification, clinical data review, literature review, market assessment, and HCP engagement, following a strategic collaboration announced in January to develop custom foundation models and agentic AI workflows to support research, clinical development, and treatment access.
In February 2025, Medidata (Dassault Systemes), a clinical development solutions provider for biopharma, reaffirmed its plan to expand AI and virtual-twin capabilities across the clinical development process, describing how generative experiences using synthetic data can simulate virtual patient cohorts to improve trial performance and reduce exposure to experimental therapies, and noting that Medidata works with 19 of the top 20 pharmaceutical companies while leveraging a large patient-level historical clinical trial dataset to support patient-centric trial and post-trial outcomes programs.
In June 2025, the U.S. Food and Drug Administration (FDA), the U.S. federal regulator for drugs and medical products, announced an agency-wide expansion of its internal generative AI tool Elsa by June 30, 2025, stating that the system runs in a secure GovCloud environment to help staff with clinical protocol assessments, safety evaluations, and internal workflow efficiency, and adding that Elsa does not train on regulated-industry-submitted data to protect confidential and proprietary information.