AI in Life Science Market

The AI in life science market is projected to reach USD 69.34 billion by 2031, up from USD 21.58 billion in 2026, at a high CAGR of 26.3% during the forecast period. The primary driver of this growth is the increased penetration of AI into applications such as drug discovery, clinical trials, precision medicine, and real-world evidence generation. AI technology helps accelerate traditional drug discovery processes, including generating hypotheses, identifying targets, and analyzing data, thereby reducing the cost and time required, which traditionally takes more than a decade to complete. AI technology is increasingly being adopted by pharmaceutical and biotech companies to improve decision-making, patient stratification, and clinical outcomes. In addition, the market is seeing increased investments, partnerships, and the development of custom-made AI models for application in life science operations. For example, in April 2026, OpenAI (US) launched the GPT-Rosalind, a specifically customized AI model designed to facilitate drug discovery and biological research processes. Moreover, NVIDIA Corporation (US) is continuously expanding its AI platform offerings in the healthcare and life sciences sectors.

The major players in the AI in life science market include NVIDIA Corporation (US), Illumina, Inc. (US), Tempus AI, Inc. (US), Recursion Pharmaceuticals, Inc. (US), Dassault Systèmes SE (France), Schrödinger, Inc. (US), Data4Cure, Inc. (US), Microsoft Corporation (US), Insilico Medicine Ltd. (Hong Kong), Eurofins Discovery Services (Eurofins Scientific SE) (Luxembourg), BenevolentAI Limited (UK), Owkin, Inc. (France), PathAI, Inc. (US), Aidoc Medical Ltd. (Israel), Qure.ai Technologies Pvt. Ltd. (India), Deep Genomics Inc. (Canada), SOPHiA GENETICS SA (Switzerland), Unlearn.AI, Inc. (US), and CureAI (Cure.ai) (India).

To know about the assumptions considered for the study download the pdf brochure

NVIDIA Corporation (US)

NVIDIA is a major supplier of accelerated computing and AI infrastructure, playing a vital role in advancing AI applications across life science sectors, especially in drug discovery, genomics, and medical imaging. The firm's hardware and software platforms, such as GPUs and AI software frameworks, are widely used by pharmaceutical companies, biotech firms, and healthcare institutions to process biological datasets at scale. According to its 2025 annual performance report, NVIDIA recorded a record annual revenue of USD 130.5 billion, representing 114% YoY growth. This success is attributed to growing demand for AI infrastructure, with its Data Center segment being the key driver of growth initiatives, contributing tens of billions in revenue per quarter and posting impressive double-digit growth rates. In healthcare and life sciences, NVIDIA reports notable AI adoption, with more than 70% of surveyed organizations applying AI and 69% adopting generative AI and large language models for applications ranging from drug discovery to medical imaging.

Illumina, Inc. (US)

Illumina is a leading company in the life sciences industry, focusing on genomic sequencing and array-based tools that enable AI-powered research in fields such as drug development, personalized medicine, and diagnostics. Illumina's platforms generate vast genomic datasets that are increasingly integrated with AI systems to advance scientific discovery and improve patient care. According to its financial performance report through 2025, Illumina earned revenues of around USD 4.34 billion, reflecting steady demand even amid economic instability. Product revenues totaled around USD 3.71 billion, underscoring Illumina's strong position in sequencing systems and consumables. These products are essential inputs for AI-powered genomics operations. Illumina also made substantial investments in innovation, spending approximately USD 967 million on research and development in 2025, which led to advancements in multiomics and AI-powered discovery platforms. Finally, the firm continues to expand its data-related activities through initiatives such as large-scale genomic datasets and multiomics platforms.

Tempus AI, Inc. (US)

Tempus is a healthcare firm that leverages technology to develop precision medicine by harnessing artificial intelligence along with real-world and genomic data. Specifically, Tempus' platform uses multimodal data sets, including molecular, clinical, and imaging data, to facilitate AI applications in diagnostics, drug development, and patient treatment paths. For the year ending 2025, Tempus recorded revenues totaling approximately USD 1.27 billion, marking an impressive growth of approximately 83%, which indicates growing adoption of AI solutions in the life science industry. Diagnostics continue to make up the largest proportion of the company's revenues, bringing in around USD 955 million each year owing to increased oncology tests and AI genomic analysis. Regarding the data and application segment of Tempus, which is based on AI-generated data and data licensing, Tempus recorded revenues amounting to about USD 316 million, marking a growth of above 30%. Additionally, Tempus' performance is marked by total contract values exceeding USD 1.1 billion and a net revenue retention rate of 126%.

Market Ranking

Leading firms in the AI in life science market include NVIDIA Corporation, Microsoft Corporation, Illumina, Inc., Schrodinger, Inc., and Insilico Medicine Ltd. These firms have invested heavily in innovation, using advanced AI technologies and applications developed for their unique business models. They have prioritized developing and implementing solutions that enable AI-based drug discovery, genome analysis, decision support services for clinical processes, and the integration of real-world data. In addition, up-and-coming firms in the AI in life sciences industry include Recursion Pharmaceuticals, Inc., Tempus AI, Inc., BenevolentAI Limited, Owkin, Inc., and PathAI, Inc. These firms have made remarkable progress toward establishing themselves in data-driven approaches to drug discovery, precision medicine, and AI-based diagnosis.

Related Reports:

AI in Life Science Market by Offering (End-to-End, Niche/Point, AI Tech), Application (Drug Discovery, Clinical Trials, Quality Assurance, Regulatory), Tool (Machine Learning, NLP, Computer Vision), End User (Pharma, Biotech) - Global Forecast to 2031

Contact:
Mr. Rohan Salgarkar
MarketsandMarkets™ INC.
1615 South Congress Ave.
Suite 103, Delray Beach, FL 33445
USA : 1-888-600-6441
[email protected]