Artificial Intelligence (AI) is set to reshape revenue management in 2025, with leaders in life sciences, pharmaceuticals, medical technology, and high-tech industries anticipating its growing impact, according to a report released on Wednesday.
The report by Model N, a revenue management solutions provider, reveals that while 87 percent of industry leaders are shifting towards automated revenue management operations, nearly 60 percent still rely on multiple solutions.
Additionally, 62 percent are either using or planning to implement generative artificial intelligence (GenAI) for revenue optimization activities, including deal analytics, process automation, and forecasting.
The report found that companies with more than 10,000 employees are 51 percent more likely than smaller organizations to adopt a unified revenue management solution.
“Life sciences and high-tech manufacturers are leveraging 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, organizations can unlock greater revenue optimization opportunities, boost efficiency, and drive growth,” Kannan added.
The MedTech sector is also undergoing a similar transformation, the report noted. Regulatory changes, such as healthcare price transparency (45 percent) and the European Union’s implementation of the Medical Device Regulation (MDR) (40 percent), are among the top factors impacting revenue programs.
Nearly two-thirds of MedTech companies are already experiencing shifts as AI and automation become integrated into healthcare operations. Additionally, 38 percent of industry leaders are focusing on adapting to value-based care models, expecting further impacts on revenue optimization functions.
Several high-tech firms are advancing their use of channel data—87 percent of companies regularly utilize channel sales data to inform price management and optimization processes. This sector leads in the application of new technology to business processes, with 74 percent of high-tech manufacturers planning to implement GenAI solutions—the highest rate across industries, according to the report.
Supply chain disruptions continue to influence strategic decisions, prompting 53 percent of companies to diversify suppliers, 51 percent to deploy new technologies, and 50 percent to implement sustainability initiatives.
With 95 percent of high-tech leaders worried about grey market sales, many are adopting measures such as removing unauthorized sellers and strengthening contract enforcement.
IANS