Synopsis
A report reveals that leaders in life sciences and high-tech sectors expect AI to significantly influence revenue management by 2025, with a strong shift towards automation and generative AI adoption for optimization tasks.Key Takeaways
- 87% of leaders are moving to automated revenue management.
- 62% are using or plan to use generative AI.
- 51% of large firms favor unified revenue solutions.
- Regulatory changes are impacting revenue strategies.
- High-tech firms are leading in GenAI implementation.
New Delhi, Feb 5 (NationPress) A significant number of executives in the life sciences sector -- encompassing pharmaceutical and medical technology companies -- along with high-tech firms such as those in semiconductors, electronic components, and original equipment manufacturing are increasingly convinced that Artificial Intelligence (AI) will play a pivotal role in revenue management by 2025, according to a recent report released on Wednesday.
The study conducted by Model N, a provider of revenue management solutions, indicates that while 87% of industry leaders are transitioning towards automated revenue management practices, almost 60% still depend on various solutions.
Moreover, 62% of these leaders are either utilizing or planning to adopt generative artificial intelligence (GenAI) for activities related to revenue optimization, including deal analytics, process automation, and forecasting.
The findings reveal that organizations with over 10,000 employees are 51% more inclined to adopt a unified revenue management solution compared to smaller entities.
“Life sciences and high-tech manufacturers are leveraging advanced technologies to automate and enhance revenue operations through data-driven insights,” stated Suresh Kannan, Chief Product Officer at Model N.
“This report underscores the importance of integrating GenAI in revenue management and moving towards a unified solution. By harnessing AI and consolidating platforms, companies can unlock greater opportunities for revenue optimization, improve efficiency, and foster growth,” Kannan elaborated.
Additionally, the medtech industry is experiencing a comparable transformation, as per the report. Regulatory shifts such as healthcare price transparency (affecting 45%) and the European Union’s introduction of the Medical Device Regulation (MDR) (impacting 40%) are among the top factors influencing revenue strategies.
Almost two-thirds of MedTech firms are already witnessing changes as AI and automation become integral to healthcare operations. Approximately 38% of executives are also prioritizing adaptation to value-based care models, anticipating further effects on revenue optimization functions.
Many high-tech firms are advancing their utilization of channel data -- indeed, 87% of companies consistently leverage channel sales data for price management and optimization strategies. This sector is at the forefront of employing new technologies in business processes, with 74% of high-tech manufacturers planning to implement GenAI solutions -- the highest rate across various industries, according to the report.
Challenges like supply chain disruption continue to shape strategic decisions, leading 53% of firms to diversify suppliers, 51% to adopt new technologies, and half to initiate sustainability programs.
Furthermore, 95% of high-tech executives express concerns over grey market sales, prompting actions such as eliminating unauthorized sellers and enhancing contract enforcement.
