The life sciences sector is approaching 2026 with a focus on technology transformation, particularly through artificial intelligence (AI), as highlighted in the C-Suite Barometer from Forvis Mazars. Despite optimism among executives, challenges such as increased competition and supply chain constraints loom large.
The report indicates that 92% of life sciences leaders maintain a positive outlook for their organizations, even as revenue growth showed a slight decline in 2025. Key obstacles include heightened competition (55%) and supply chain issues (47%), with economic factors also weighing heavily on decision-making. Notably, 67% of firms are increasing investments across various business functions to mitigate these challenges.
In terms of growth drivers, innovations in GLP-1 drugs, particularly the shift from syringe to oral delivery methods, are gaining traction. Collaborations between companies, such as Novo Nordisk and telehealth platforms, are expected to streamline the prescribing process. Additionally, as some major medications approach patent expiration, companies will need to focus on filling their research pipelines to sustain revenue, which may lead to increased merger and acquisition activity.
AI adoption is becoming increasingly significant, with nearly 70% of executives reporting its substantial impact. Companies are realigning their structures to facilitate AI implementation, particularly in drug development and operational processes. However, there remains a cautious approach to using AI in clinical trials, as firms seek to balance cost control with innovation amidst regulatory uncertainties.
The evolving landscape necessitates that life sciences organizations prioritize strategic initiatives over the next two years. This includes managing portfolios, advancing high-quality candidates, and adapting to changing federal policies on drug approvals. As the sector navigates economic pressures and competitive dynamics, the focus will remain on leveraging technology to drive growth and innovation.