Emerging Business Models in the Life Sciences in the Age of AI
Companies leading the AI revolution in Biotech
11/11/20253 min read
Artificial Intelligence (AI) is fundamentally transforming modern work as we know it. It’s happening right before our eyes at an incredible and unprecedented speed. Each of our Microsoft software suite products already has an embedded Copilot assistant enabling us to edit our writing in real time, replacing internal editors and third-party tools like Grammarly. Microsoft is using its market dominance and expansive presence to embed Copilot into virtually every desktop that uses its software. According to Forbes, Microsoft is set to completely transform itself into an AI company, with Azure becoming the operating system, providing the runtime and platform services, and the apps turning into Copilot AI assistants.
We have witnessed how AI has disrupted the service industry, especially in Software as a Service (SaaS), consulting and agentic AI. Industry sectors like marketing, customer support, HR and legal services which rely heavily on effective, sophisticated and nuanced communication are at the frontline to benefit most from this transformation.
While AI is disrupting in the service industry, how is the Life Science industry adapting to this new era of digital transformation? Which companies are at the frontlines pioneering the digital evolution? What are some of the innovative business models emerging in artificial intelligence designed to leverage its scalability and automatization capabilities?
Let’s dive into some examples of new business models used by Life Science companies that are reshaping our industry:
AI Product-as-a-Service (PaaS): Products enhanced with AI offer continuous services, such as home assistant devices that adapt to user behavior. The product is an IIOT connected device with AI software that learns user behavior and adjusts temperature based on user behavior. Owkin is an example of an AI PaaS company.
Owkin
Owkin offers AI-powered tools for biomarker discovery and predictive modeling in clinical trials. Owkin has developed continuous learning models that are embedded into pharmaceutical workflows such as predicting the treatment response based on histology and geonomics. Customers can subscribe to a product, and the AI tools evolve as more data is collected.
AI-Driven Monetization: Companies gather and analyze data to deliver insights or predictive analytics. Tempus is perfect example of this business model.
Tempus
Tempus collects clinical and molecular data to power precision medicine via predictive analytics. Its monetization model is selling insights and analytics from its vast dataset to pharma companies for R&D, biomarker discovery, and patient recruitment.
AI-Powered Platforms: Digital platforms utilize AI to match products or services to customer needs, evident in ride-sharing apps that optimize routes and pricing in real time.
BenevolentAI
BenevolentAi is an end-to-end drug discovery platform. It predicts disease targets and matches them with compounds. It provides drug discovery as a service for partners like AstraZeneca.
Product-Focused Approach: Success depends on product performance and deep integration within user workflows.
Benchling
Benching offers a cloud platform for Biotech R&D. It embeds AI to assist with data entry, experimental design and analysis. It enables deep integration with researcher workflows.
Cloud-based platform for biotech R&D | Benchling
Product Plus Embedded Engineering – Co-Creation: Rather than offering generic tools, these firms embed engineers with clients to co-develop solutions tailored to real-world requirements. For instance, Harvey collaborates with law firms to build bespoke legal AI copilots, attuned to regulatory nuances and risk profiles.
Valo Health
Valo Health uses its Opal Computational Platform to co-develop drugs with pharma. It works closely with partners like Charles River Labs to tailor predictive AI models to specific therapeutic areas.
Full-Stack AI Services: These businesses assume joint ownership of outcomes, combining AI with human expertise to ensure high-quality results.
ConcertAI
ConcertAI is a full-stack RWD + AI company supporting oncology drug development. It provides end-to-end support from data curation, AI analysis, and regulatory support. Owns results and often works in long-term partnerships.
Accura Bio Solutions: AI Evaluation & Integration
Accura Bio Solutions delivers business evaluation services and supports the integration of AI into existing processes, helping organizations adopt new technologies effectively.
References:
Forbes, The Four AI Business Models Reshaping The Future Of Enterprise
Forbes, Microsoft’s AI Transformation: From Software Giant To AI Powerhouse
Harvard Business School Online, AI-Driven Business Models: 4 Characteristics | HBS Online
ConcertAI | Leaders in Generative & Agentic AI Solutions Tailored for Life Sciences & Healthcare