Strategic Use of AI in Healthcare and Pharma Drives Market Advantage. Here’s How

The healthcare and pharmaceutical sectors are experiencing radical evolution through artificial intelligence, driving competition, and improving clinical outcomes. IMD’s AI Maturity Index highlights effective approaches from industry frontrunners like Bayer, Medtronic, and AstraZeneca, write Tomoko Yokoi and Michael Wade.

Artificial intelligence has transcended its initial promise to become a fundamental strategic imperative in healthcare and pharmaceuticals. Organizations at the forefront of this transformation are building AI capabilities across multiple areas of operation, establishing market advantages through technological innovation and organizational transformation.

At IMD’s TONOMUS Global Center for Digital and AI Transformation, we’ve developed a comprehensive framework that evaluates organizations’ AI maturity across five key dimensions. Our proprietary AI Maturity Index provides valuable insights into what differentiates industry pioneers from those still catching up in these heavily regulated, complex sectors.

When examining the 2024 AI Maturity Ranking with a focus on healthcare and pharmaceutical organizations like Bayer (#20), Medtronic (#26), and AstraZeneca (#28), clear patterns emerge that offer a roadmap for organizations seeking to enhance their own AI capabilities.

“At the most successful firms, leadership teams are strategically positioning AI as central to corporate strategy through significant investments.”

Leadership drives transformation

The path toward AI maturity in healthcare begins with decisive boardroom action and executive commitment. At the most successful firms, leadership teams are strategically positioning AI as central to corporate strategy through significant investments, targeted appointments, and organizational restructuring.

Bayer exemplifies this approach through substantial financial investment directed from the highest levels of the organization. In 2022, the company announced a $1.4 billion investment in digital transformation, with Board of Management approval for AI and data science as cornerstone technologies. CEO Bill Anderson and the executive team have established a group-wide data strategy focused on quality, integration, analytics, and security – creating the foundation for responsible AI deployment across divisions.

AstraZeneca’s leadership has demonstrated commitment to AI through strategic executive appointments.[…]