A majority of leaders in life sciences—pharmaceutical and medical technology companies—and high-tech industries such as semiconductors, electronic components, and original equipment manufacturing, expect artificial intelligence (AI) to drive revenue management in 2025, according to a report by Model N, a revenue management solutions provider.
The report reveals that while 87% of industry leaders are moving toward automated revenue management operations, nearly 60% still rely on multiple solutions. Additionally, 62% are using or planning to implement generative AI (GenAI) for revenue optimization activities, including deal analytics, process automation, and forecasting.
Companies with more than 10,000 employees are 51% more likely than smaller organizations to use a unified revenue management solution. “Life sciences and high-tech manufacturers are using 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 transformation. Regulatory changes, such as healthcare price transparency (45%) and the European Union’s implementation of the Medical Device Regulation (MDR) (40%), top the list of impacts on revenue programs. Nearly two-thirds of MedTech companies are already seeing shifts as AI and automation integrate into healthcare operations. About 38% of leaders are also focusing on adapting to value-based care models, expecting further impacts on revenue optimization functions.
High-tech companies are advancing their use of channel data, with 87% of companies regularly using channel sales data to inform price management and optimization processes. The industry leads in applying new technology to business processes, with 74% of high-tech manufacturers planning to implement GenAI solutions—the highest rate across industries, revealed the report.
Supply chain disruption continues to influence strategy, prompting 53% of companies to diversify suppliers, 51% to deploy new technologies, and half to implement sustainability initiatives. Additionally, 95% of high-tech leaders express concerns about grey market sales, implementing measures such as removing unauthorized sellers and enhancing contract enforcement.
