March 2025 Life Sciences Update

07

How is the Industry Preparing for AI?

CONTENTS

Global AI-Life Sciences Venture Capital Funding

• While the world discusses whether AI is hype or reality, it’s not surprising that an industry focused on innovation has been implementing AI into its business over the last few years. Main applications include: • Drug Discovery: There have already been notable applications. The 2024 Nobel Prize for chemistry was awarded to a team that used AI to predict protein structures. The industry aims to use AI to identify novel molecules for drug development. • Clinical Trials: AI is streamlining the clinical trials process through digital twins, which simulate patient responses to treatments, potentially accelerating drug development timelines.

Capital Invested

Deal Count (RHS)

$18,000

1000

900

$16,000

800

$14,000

700

$12,000

600

Number of Deals

$10,000

500

Improved Workflows: Some companies are deploying AI agents as digital worker companions, with the goal of automating everyday tasks and freeing up staff to focus on higher competency work.

•

$8,000 VC Funding ($millions)

400

$6,000

300

• Global funding for AI in life sciences increased 31% YOY in 2024. As this sector matures, further investor interest is expected. Recently, the UK government announced an £82.6 million investment (£37.9 million from the government and £44.7 million from co-investors) in AI for cancer care and drug discovery1. 1. https://www.openaccessgovernment.org/uk invests-82-6-million-to-support-ai-in-cancer-care and-drug-discovery/188475/

$4,000

200

$2,000

100

$0

0

2019

2020

2021

2022

2023

2024

Source: PitchBook Data, Inc.; *Data has not been reviewed by PitchBook analysts; YTD as of June 2024; RHS=Right Hand Side

35 35

Cushman & Wakefield