By: Kristin Ciriello Pothier, KPMG Americas Life Science Leader

Life sciences CEOs are making decisive moves to secure long-term growth, and the message is clear: standing still is not an option. Findings from the KPMG 2025 CEO Outlook survey show leaders are strategically investing in AI, talent, and operational agility – choosing to accelerate rather than retreat.

From Priority to Business Imperative: The AI Investment Surge

Life sciences leaders are no longer just talking about artificial intelligence (AI) – they’re putting their plans into action. 75% of life sciences CEOs now count AI as a top investment priority, a sharp increase from 60% just last year. This confidence is backed by significant capital, with 73% of leaders planning to direct 10-20% of their budgets to AI in the coming year.

This investment is targeting specific, high-impact areas. Many leaders are prioritizing agentic AI technologies (80% report high or moderate investment levels) and AI-enhanced products and manufacturing (79%). To enhance their ability to innovate, adapt, and scale with these technologies, many organizations are pursuing M&A – 41% of CEOs report a high appetite for acquisitions that will significantly transform their organizations. This represents a strategic shift from acquiring assets to acquiring capabilities.

Workforce Readiness and Ethical Responsibility

This technological leap is not without its challenges. As investment in AI grows, so do ethical considerations. The percentage of life sciences CEOs citing ethical challenges as a barrier to AI implementation has risen to 66% – up from 58% in 2024. This growing awareness signals industry maturation as leaders shift from asking if they can implement AI to how they can do so responsibly.

A critical part of that equation is the workforce. 85% of CEOs identified workforce readiness for AI as a key factor for their organization’s prosperity. In step with this, 77% are focusing their long-term strategy on retaining and retraining their high-potential talent. This is a clear acknowledgment that technology’s true potential is only unlocked when paired with human insight and oversight.

Building Resilience Against Operational Risk

Beyond the strategic push into AI, life sciences CEOs are fortifying their organizations against operational risks, with supply chain and regulatory pressures among their top concerns. When asked about trends that will impact their organization’s prosperity over the next three years, 74% said regulatory demands, highlighting them as a top-of-mind, long-term factor. In the short term, supply chain resilience (25%) and regulatory pressures (20%) stand out as primary drivers of immediate business decisions.

To mitigate these risks, organizations are increasing investment in supply chain resilience (40%) and boosting spending on regulatory compliance (34%), underscoring a commitment to building a more agile and durable enterprise.

The Leaders Who Will Win

The defining question is no longer if transformation is coming, but who will lead it. The life sciences CEOs who act decisively – integrating technological innovation with deep investment in their people – will be the ones who win the future of health. Success will belong to those who build resilient, ethically grounded organizations capable of thriving amid complexity and who execute with speed and precision to set the pace, not just keep it.

Kristin Ciriello Pothier is the KPMG Americas Life Sciences Sector Leader, as well as the Global and National Healthcare and Life Sciences (HCLS) Deal Advisory & Strategy Leader. With almost 30 years in strategy consulting and scientific and clinical research in the healthcare and life sciences industries; her areas of focus are commercial strategy, growth strategy, and M&A for pharmaceutical; diagnostics, device, and consumer health companies; investors; and medical institutions worldwide. She is a leader in precision medicine and in clinical diagnostics laboratory innovation, developing product and service strategies and operations with on-the-ground experience in the Americas, Europe, Asia, India, and the Middle East. Her book, Personalizing Precision Medicine, has garnered attention worldwide for its all-inclusive and comprehensive look at global precision medicine.Kristin also works with health systems and affiliated organizations on their innovative services strategies, diligences, and operations, including clinical trial program development, clinical laboratory builds, health IT, hospital services, and clinical outreach strategy. Earlier in her career, Kristin was a partner and the global head of Life Sciences Strategy at EY-Parthenon and a partner at Health Advances, where she built those businesses from single deals–focused offices to global organizations. She started her career as a geneticist and clinical diagnostics developer at Genome Therapeutics and Genzyme/Sanofi. Kristin holds an MS in Clinical Epidemiology, Health Management, and Maternal and Child Health from the Harvard School of Public Health and a BA in Biochemistry from Smith College.