The Impact of Digital Transformation in 2025: Q&A with Pete Lyons

Pete Lyons
Vice chair
US life sciences sector leader
Deloitte

According to a new report from Deloitte, the life sciences industry will have a transformative year. The industry faces renewed scrutiny over pricing and access, but new technologies are providing new solutions. Pete Lyons, vice and US life sciences sector leader at Deloitte Pete Lyons discusses the report’s findings and other key trends for the coming year.

Pharmaceutical Executive: How significant an issue is pricing and access to drugs and medical devices?
Pete Lyons: Based on research from our Center for Health Solutions, 47% of life science executives feel that pricing and access to drugs, therapies, and medical devices will significantly impact their company in the near term, and another 49% expect moderate effects. Pricing can impact affordability, making access difficult for those facing inequities.

PE: How big of an impact is digital transformation expected to have?
Lyons: Adopting digital technologies can be key to optimizing business operations. We anticipate digital transformation, AI and generative AI (gen AI) will be significant priorities for the industry in the coming year. Our research found 62% of all executives (60% of US respondents) plan to invest in transformative technologies such as gen AI, digital twins, and augmented reality in 2025. Many are moving beyond pilot projects at this point and are beginning to realize substantial value at scale. Previous research points to substantial opportunities stemming from implementation of AI technologies­–around a 10% increase in value relative to revenue over the next five years for biopharma companies, and up to 12% of total revenue in cost savings for some medtech companies.

Our findings also reflect a spectrum of maturity in adoption. While some organizations have made significant progress, many are still in exploratory phases. Our findings show 37% of respondents reported that their organizations are either operating at scale (11%) or building gen AI capabilities (26%). Another 45% are currently experimenting with various use cases.

PE: What trends have been identified in R&D within the Pharma industry?
Lyons: Innovation is the heart of life sciences organizations. To counter competitive pressure, organizations are leaning on their R&D function and M&A. Half of the medtech executives, and 56% of the biopharma executives who we surveyed said their organizations need to rethink their R&D and product-development strategies over the next 12 months.Nearly 40% of all survey respondents emphasized the importance of investing to improve R&D productivity to counter declining returns across the industry. In addition to productivity, companies are revisiting portfolio strategies to balance innovation with market needs and best leverage their current capabilities. 21% of all survey respondents indicated it is “very important” to evaluate their portfolio strategies, while 38% of US respondents shared this view.

PE: How are evolving customer expectations influencing strategy?
Lyons: Health care consumers are increasingly taking charge of their own health, and companies are paying close attention to evolving customer needs. 27% of all survey respondents emphasized this focus. Our research revealed that many companies are actively planning to improve customer experience, engagement, and trust through personalized interactions and improved service delivery – and many are doing so through the adoption of new digital technologies. Investing in CRM and engagement platforms to better understand and engage with customers was a higher priority for US respondents at 40% compared to all at 29%.

Consumers are expecting more from the industry to meet their needs and improve access as well as reduce friction.