IBM Institute for Business Value | Research Brief

Industries
in the AI era
How 10 industries are harnessing AI
to supercharge business opportunities
How IBM can help
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Industries in the AI era 2

Key takeaways

On the AI journey,
efficiency is an important
milestone, but growth
and innovation are
the destinations.

Productivity is not As AI becomes more Channeling AI disruption into

the AI endgame. transformational, it also industry leadership requires an
becomes more industry AI-powered operating model.
and enterprise specific.
Organizations focusing only Enterprises winning with AI 79% of executives expect gen AI to have
on efficiency will miss out on are reimagining businesses, a major impact on core elements of their
greater opportunities from AI transforming operating models, operating model.3
for innovation. 85% of executives and charting new industry paths.
say AI will enable business model 62% of CEOs say they have to rewrite
innovation and 89% say it will drive organizational playbooks.2
product and service innovation.1

Industries in the AI era 3

Executive summary

Rise to the AI moment

Moving past operational improvements
for competitive advantage

Successfully harnessing AI will determine the That’s why enterprise spend on AI has grown dramatically in the past few years.
Organizations are racing full speed ahead to take the AI high ground, with enterprise
rise—or fall—of businesses across virtually all
spend on AI surging 78% between December 2022 and March 2024.5
industries. Most CEOs acknowledge that enterprises
But investing in AI is not the same thing as realizing business value from AI. Many AI
with the most advanced generative AI capabilities
use cases initially focus on improving productivity and operational efficiency by
will capture greater competitive advantage.4 incorporating AI tools into existing processes and work methods. That’s logical:
automating or improving repetitive tasks can yield quick wins.

Now we’re at the cusp of a new AI moment as the technology evolves from AI assistants
to agentic AI, where AI can autonomously perform tasks for a user or another system
by designing workflows and unlocking opportunities. Capturing this potential requires
thinking beyond individual tasks and reimagining processes and workflows through an
AI lens—a redesign that fully leverages AI advantages to realize dramatic productivity
gains. But this is not the endgame: those who focus only on efficiency will fall behind
and miss out on greater opportunities.

Industries in the AI era 4

Executive summary (continued)

Companies that linger in the AI productivity phase will fail to benefit from the ultimate Figure 1
Figure 1
potential of AI for innovation—its ability to generate new ideas, disrupt markets, inspire
Transformational impact
Transformational impact of AI onof AI on industries
industries
new products, and create new services and revenue streams. Innovation beyond
productivity is the differentiator in today’s competitive landscape and the lever for
uncovering the full value potential of AI.
Operating
cost Revenue
Innovation-focused AI requires a shift from a tactical POV—how work is done—to a
larger, more strategic perspective on what an enterprise could be doing. And as these
efforts become more transformational, they also become more industry and enterprise Productivity focused Innovation focused AI
AI reduces cost increases revenue
specific (see Figure 1).

Executives winning with AI are reinventing businesses, transforming operating models,

and charting new industry paths. Among CEOs globally, product and service innovation
now rank as the top priority, with business model innovation the leading challenge.6

When people, platforms, processes, and partners operate in a mutually supporting

feedback loop, it creates a flywheel effect that spins off innovation and value creation.
Efficiency gains, augmentation, workflow transformation, and new revenue streams
propel a continuous cycle of innovation, change, and value creation. As this dynamic
builds momentum, AI will increasingly shift to a self-funding model, enabling further
investments into new projects with greater potential for breakthroughs. In fact, 95%
of executives say gen AI will be at least partially self-funded by 2026.7 Organizations
that start and keep spinning an AI innovation flywheel will gain more value beyond
step change improvements to existing ways of working.

What does success look like in each industry setting? This report provides targeted
insights across 10 different industries, along with a real-world case study for each
industry and an industry-specific action guide. To begin, we provide a summary of each
industry, followed by an outline of four key areas that impact all industries, and an
overarching cross-industry action guide. Then we dig deep into each industry.
AI capabilities

Industries in the AI era 5

Industry summary

Banking and finance: Delivering more and better services Retail and consumer products: Pivoting to AI-led brands
AI gives banks new opportunities to reimagine how they create value More than 80% of retail and consumer products organizations report
for customers. 67% of banking CEOs say they must accept significant risk AI deployment in demand forecasting, IT support, HR help desks, trade
to harness automation advantages and enhance competitiveness while promotions, and inventory management. The challenge is to extend
64% say they must rewrite their organizational playbook to win in the these early advances into more sophisticated, value-creating activities—
future. With AI, banks learn more from each client interaction, refine actions to improve and take the bold steps needed to become AI-led brands. Industry executives project
the customer experience, higher-value services, such as embedded finance and that AI’s contribution to revenue growth will increase by 133% from 2023 to 2027, with
wealth management. Banks are also tapping AI to reimagine core operations for significant impacts on customer experience, product design, and new business models.
greater efficiency, better risk management, and modernized technology. For example, AI can enable hyper-personalization and tailor omnichannel engagement.

Telecommunications: AI reshapes the digital world Automotive: Driving mobility to new destinations
More than 80% of telecom executives say gen AI will change the role The automotive industry has been at the forefront of AI deployment,
of their organization within their industry during the next three years. from autonomous driving technology to electric vehicles. Cars have
AI is moving beyond basic automation to decision-making, network become increasingly software intensive and 74% of industry executives
optimization, sustainability, and proactive customer care. As people predict cars will be software defined and AI powered in the next decade.
and business connectors, communications service providers (CSPs) have a unique The auto industry business model is shifting from selling vehicles and aftermarket parts
opportunity to position themselves as catalysts for AI-driven innovation across to generating more recurring digital revenue. A software-enabled customer experience
industries. More than three out of four telecom CEOs (79%) say gen AI will create can be a key automotive brand differentiator as digital- and software-related revenue
opportunities for their organization outside the telecom industry. is expected to be 51% of total industry revenue by 2035.

Public service: Future-ready governments lean into AI Oil and gas: Enabling a more profitable low-carbon future
AI offers governments an unprecedented opportunity to reinvent AI is emerging as a catalyst for every aspect of the oil and gas value
how they deliver services, with the potential to set the global standard chain—from exploration to production to distribution—unlocking new
for innovation and resilience. 60% of government CEOs prioritize levels of operational efficiency, safety, and sustainability. Whether
accelerating transformation, and 69% recognize the need to rewrite it’s discovering untapped reserves, enhancing predictive maintenance
organizational playbooks to be future-ready. In an era defined by volatility, AI enables to help prevent failures before they happen, or driving more efficient production
governments to scale capabilities, empower public servants, reduce administrative processes, AI is the engine that can propel the industry forward. It can also help
burdens, and respond with agility to crises and shock events such as geopolitical the industry pivot to sustainable energy solutions by optimizing renewable energy
conflicts, climate-related disasters, pandemics, and economic upheavals. generation and streamlining grid integration.
Industries in the AI era 6
Industry summary (continued)

Utilities: How to supercharge power grid reliability Insurance: Bridging the AI trust gap
Embracing AI enables utilities to navigate the complexities of the ongoing In an industry defined by prudence and risk mitigation, seizing the
energy transition. As the sector grapples with aging infrastructure, rising opportunities created by AI can feel like a balancing act. While 77%
operational costs, and pressure to transition to cleaner energy sources, of industry executives say they need to adopt gen AI quickly to keep
AI can help improve power grid resilience. From smart grids to energy up with rivals, only half say it is more of an opportunity than a risk.
forecasting to integrating renewable energy, AI plays a critical role in transforming the Insurers can differentiate by using AI to support new types of tailored products
utility industry. For example, it can help smooth out fluctuations in renewable energy and bring them to market faster with a more targeted approach. This means delivering
generation and optimize energy storage systems. not just personalization, but actual matches between customers, their risks, and the
insurer’s product portfolio. Trust and quality need to be ironclad, given an insurer’s
investment in a brand and its regulatory constraints.

Healthcare: Delivering measurable improvements with AI—now Life sciences: From drug discovery to agentic AI
AI has already demonstrated the potential to revolutionize healthcare AI-enabled drug discovery and development is a hot topic in the
without disrupting patient care when applied to back-office operations life sciences industry. A variety of biomedical foundation models
and nonfrontline clinical decisions. For example, AI-driven automation are available to support drug design, including open-source models
has reduced processing time of discharge letters from 10 minutes to only four seconds that use AI to generate molecular designs. As AI progresses from individual task-based
per patient. Looking ahead, AI is poised to make an impact in digital scribing by enabling tools to AI agents, the possibilities get even richer. Life sciences organizations can
automated notetaking and summarization. With AI-supported treatment advances on the optimize and automate complex, multistep workflows from genomic analysis to
horizon, AI can already deliver measurable improvements in patient flow by reducing hypothesis synthesis to visual data interpretation.
missed appointments, unnecessary follow-ups, and delayed discharges.

Industries in the AI era 7

Essential capabilities of
AI-centric operating models
AI is disrupting
industries Elevating your people. In traditional Continuously improving processes. Getting more from data and AI through
organizations, people—no matter their AI can sweep away functional silos and flexible IT architectures and platforms.
Channeling that disruption into market role—spend a lot of time manually sifting fundamentally transform work methods, As AI technology evolves, working with
leadership requires an AI-powered through paperwork, collecting data, removing redundancy, improving a single large model for all purposes
operating model centered on people, and monitoring systems. AI assistants insights, and fueling enterprise agility. is not necessarily the right way forward.
supported by processes, enabled by tech and agents can handle these tasks Agentic AI enables iterative and Different capabilities are offered by
and data platforms, and reinforced by effortlessly, liberating professionals collaborative workflows and ongoing different models, with some models
energized partners (see Figure 2). from tedious duties, freeing time for process improvements. It can identify, tailored to the needs of a specific
deeper dives into higher value activities, source, and incorporate data from industry. Organizations with an AI
and enabling more creative problem- across systems and tools to generate platform for multiple models and assets—
solving. People across industries will outcomes in new ways, and embed and underpinned by flexible technology
have to make this game changing shift, codify enhancements at unprecedented architectures—will be able to leverage
with 64% of CEOs saying that success scale and speed. In fact, 92% of C-suite the right model for each use case.
with AI depends more on people’s executives expect to digitize their
That means avoiding technology lock-in,
adoption than the technology itself.8 organization’s workflows and leverage
embracing hybrid by design, and enabling
Organizations making this transition AI-powered automation by 2026.9
interoperability and scalability across
will be poised to address skills shortages,
different environments and systems.
manage resources with greater
This will enable data to flow across the
flexibility, and harness collective
enterprise to where it can generate the
workforce intelligence.
most value and turn AI into a competitive
advantage by tapping your enterprise
and industry specific data. For many
organizations, this will require a tech
reset, with 74% of organizations
struggling with technical debt and only
25% of executives strongly agreeing that
their organization’s IT infrastructure can
support scaling AI across the enterprise.10
Industries in the AI era 8
 Figure 2
Transformational impact of AI on industries

Figure 2

The continuum of AI transformation for industries

Turning AI into a team sport with the right partners. The ability
to integrate ecosystem partner capabilities will be essential to build
and maintain a competitive edge with AI. IBM Institute for Business
Incremental Greater efficiency Transformation
Value (IBM IBV) research has found that organizations investing improvements and productivity propelled by innovation
in ecosystems enjoy a revenue growth premium of 40%;11 such
efforts can become even more lucrative in the age of AI. But
to succeed, organizations must get better at selecting the right – Ad hoc use of AI – People trained to use – People collaborating
– Prompt-based AI AI for executing tasks with AI to innovate
partners for the right purpose—and not hang on to partnerships
assistants – AI assistants and what is done
that no longer fit. In fact, 55% of business leaders say that changing – Task improvement productivity tools – Networks of AI
strategic priorities mean reconfiguring core partnerships.12 – Ad hoc use of partner – Task and process assistants and agents
assets and capabilities automation – Value-driven
– Partner assets and orchestration of
capabilities used for end-to-end workflows
specific initiatives – Partner assets and
resources seamlessly
integrated

Ecosystem partnerships need to evolve,

matching the right AI expertise and resources
to the changing business needs of each industry.

Industries in the AI era 9

Action guide
for all industries

Here are four to-dos for all industry leaders to build momentum
and seize AI opportunities for innovation and growth:

1 2 3 4
Don’t just augment jobs Revamp operations Make your technology Add partnerships that bolster
with AI, reinvent them. to be AI-first. estate AI-ready. your mission—and trim those
that don’t.

Integrate AI tools across the enterprise Prioritize processes and workflows Take a purposeful approach to cloud, Make hard decisions about where
and train employees to use the right for AI-led redesign and embed AI infrastructure, data, and security. to double down and where to reconfigure
AI model, assistant, or agent. Elevate so it becomes second nature. Seek Codify and enforce consistent your current ecosystem. Clarify where
current roles, invent new ones, meaningful change in core workflows architectural principles and tap AI your organization is unique, what needs
encourage and reward innovation, that cut across traditional functional assistants to continuously improve to be proprietary, and how partners will
and make change management core and process silos to reduce complexity architectural decisions. complement what you already do.
to AI transformation. and hand-offs. Don’t be limited to
tweaks at the edges.

Industries in the AI era 10

Ten industries
reimagined in the
era of AI

Impacts and implications

of AI on industry growth,
innovation, ecosystems,
and competitiveness

Industries in the AI era 11

Banking and finance
Delivering more and better services

AI gives banks new opportunities to reimagine how they Technology and innovation have driven dramatic changes to banking over the last
few decades. From internet banking to chatbots, customers now enjoy rapid access
create value for customers. 67% of banking CEOs say to services. Customers benefit, but so do bank employees, who can spend more time
they must accept significant risk to harness automation on higher value activities, such as counseling clients on wealth management and
advantages and enhance competitiveness13, while 64% developing new business.

say they must rewrite their organizational playbook.14 Today, AI takes everything a step further (see Figure 3). Banks learn more from
each client interaction and can refine actions to improve the customer experience.
Customer service chatbots become more sophisticated as gen AI handles digital
conversations that facilitate value-added relationships, improving first point
of contact resolutions (FPOC) and reducing the cost to serve. By combining insights
from mobile apps, online experiences, and client details gathered by branch
managers, AI surfaces insights into client preferences and uncovers ways
to improve banking services.

As customers become more comfortable with branchless, fully digital banks as their
primary banking relationship, competition is shifting from mass market digital
offerings to higher-value services, including embedded finance and advisory services.
For example, leading banks are enhancing wealth management with AI to empower
AI-powered service customization and product
traders and investors with deep insights and identification of trends from large data
differentiation will help banks and other financial sets to adapt strategies, enhance profitability, and reduce risk.
institutions develop new sources of revenue and
compete more effectively with fintechs
and neobanks.

Industries in the AI era 12

 Figure 3

Evolving banking with exponential technology

Figure 3
Evolving with exponential technology

Banks are also tapping AI to reimagine AI-powered assets digitize, or codify,

core operations for greater efficiency, aspects of knowledge, skills and task
better risk management and technology execution that have traditionally been
modernization. For example, AI can performed by individuals. This allows
transform lending operations with for greater consistency at scale as
automated underwriting and credit human expertise gets embedded into
Strategy Digitalization Personalization Communication
decisioning. It can also improve the AI-powered tools. By shifting focus
accuracy and effectiveness of fraud, from individual use cases to
Customer More digital habits Less friction Less passive
KYC (know your customer) and AML enterprise-wide transformation, experience Fewer branch visits More relevance More conversational
(anti-money laundering) detection banks can use AI to target labor and
models. These tools use suspicious cost-intensive operations, processes
Investment Hybrid cloud AI /machine learning/ Generative AI
pattern recognition to detect patterns involving frequent document handling, focus deep learning
in transactions and reduce the number and workflows susceptible to delays
of false positives seen by analysts for due to outdated methods or complex
validation and escalation. interdependencies.

Banks are already using AI to analyze

transaction data in near real time, and LLMs
can make data processing even faster.

Industries in the AI era 13

Case study

NatWest delivers the personal

touch, enabled by AI 15
NatWest is one of the first UK banks NatWest worked with IBM to create uses retrieval-augmented generation
an upgraded version of Cora in 2024, (RAG) technology to handle natural
to leverage generative AI, creating incorporating gen AI to deliver more language questions and deliver answers
nuanced answers and better anticipate via chat.
a competitive advantage by offering customer needs. Cora+ is a multichannel
The bank has seen up to 150%
more personalized and responsive interaction platform across website,
improvement in customer satisfaction
mobile app and social media, delivering
support to customers. human-like interactions. While original and now 94% of NatWest customers
use digital banking.
Cora would direct users to existing sites
Headquartered in Edinburgh, Scotland, NatWest offers banking
or content to answer questions, Cora+
services to more than 19 million people, families, and businesses
in the UK and Ireland. Since the launch of its Cora digital assistant
in 2017, AI has been a cornerstone of NatWest’s customer
engagement, addressing nearly 11 million inquiries annually. “It’s really important for our customers to feel understood when
they’re talking about something as sensitive and personal as
money. Whether we do that as human being to human being,
or whether we do it as digital being to human being, we have
the same considerations—that the customer has to feel cared
for and understood.”
Wendy Redshaw, Chief Digital Information Officer, NatWest retail division

Industries in the AI era 14

Action guide
for banking executives

1 2 3
Tap AI for embedded finance, Make every banker Focus AI on high-impact
allowing customers to bank an AI risk manager. workloads in core banking
anywhere, anytime. operations to enhance
offerings and profitability.

Enhance advisory propositions with Enterprise-wide AI will redefine a bank’s Embrace AI to reimagine processes
AI to capture new service fees for operational risk profile and demands end-to-end and drive efficiency and
consumers and businesses. Reconsider a renewed risk management culture. innovation. For example, investing in
payment initiatives as the backbone Consider the potential value of AI AI-enabled personalization supports
for new data to fortify AI-powered risk implementations as you assess risk customer growth, improves activation
management across ecosystems. and complexity. Successfully managing rates for cards and services, and helps
risks is critical to maintaining customer lower costs to acquire new customers.
trust, regulatory adherence, and
responsible use of AI.

Industries in the AI era 15

Telecommunications
AI reshapes the digital world

For years, the telecom industry has benefited from traditional More than 80% of telecom executives say gen AI will change the role of their
organization within their industry during the next three years.16
analytics and AI technology and is now exploring the
transformational opportunities offered by gen AI and agentic AI. AI assistants are already making employees more productive, with proprietary
AI models automating everyday tasks for leading adopters. AI can move beyond
basic automation to decision-making, network optimization, sustainability, and data
analytics. Digital twin capabilities combined with AI models, assistants, and agents
are enabling communications service providers (CSPs) to simulate physical and
digital infrastructure and execute scenario analysis to anticipate challenges, plan
network expansions, and optimize bandwidth in real time—predicting potential
bottlenecks, as well as anticipating and responding in real time to network anomalies.

Looking ahead, agentic AI systems can not only track and monitor usage trends,
but interface with partner carriers to negotiate bandwidth and dynamically provision
resources. Agentic AI can also enable more targeted marketing campaigns,
personalized bundling of services, and proactive customer care.

These opportunities will require tapping capabilities beyond industry and enterprise
boundaries—61% of telecom CEOs say they need to reconfigure core business
To benefit from capabilities beyond telecom industry partnerships.17 Cross-industry collaboration can also open new revenue streams,
from smart city partnerships to interactive media platforms. As people and business
boundaries, 61% of telecom CEOs say they need to
connectors, CSPs have a unique opportunity to position themselves as the catalysts
reconfigure core business partnerships. for AI-driven innovation across industries. More than three out of four telecom
CEOs (79%) say gen AI will create opportunities for their organization outside their
own industry.18

Industries in the AI era 16

Case study

Bharti Airtel calls everyone

to the AI table 19
Bharti Airtel uses AI across its operations The company has also launched an AI Furthermore, Airtel has identified and
powered radio access network (RAN) started to deploy AI to key strategic areas
and products to further enhance its digital energy management solution, focused with several AI led use cases already in
on reducing energy consumption production, spanning across customer
capabilities and customer experience. throughout Airtel’s network experience, human resources, and
The company has launched innovative AI solutions to solidify its infrastructure. This vendor-agnostic marketing. Airtel is now actively working
position as India’s largest integrated communications solutions solution works across 4G and 5G on implementing agentic AI solutions
provider, serving over 550 million customers in 17 countries. technology. Based on initial trials, Airtel to drive innovation and growth.
is expected to save approximately $12
Airtel’s industry-first anti-SPAM network has brought relief million (100Cr) annually and reduce its
to millions of customers. Since its launch, the solution has flagged carbon footprint.
over eight billion spam calls and one billion spam SMS messages,
identifying nearly one million spammers daily. The AI-powered
network leverages advanced algorithms to provide
“At Airtel, we believe in the transformative power of AI and gen
real-time spam protection at no cost to customers.
AI. Like with any new technology, there is a cycle of awareness,
evangelizing, and training that must be followed.”
Pradipt Kapoor, Chief Information Officer, Bharti Airtel

Industries in the AI era 17

Action guide
for telecommunications executives

1 2 3
Invest in tailored Transform the Focus on cross-industry
telecommunications telecommunications partnerships.
AI portfolios. value chain from networks
to customers.

Standard LLMs are seldom trained Embed AI-driven insights from design Engage with partners in adjacent sectors
on highly specialized technical data of to customer engagement and embrace to leverage AI-driven synergies and
telecom networks. Tailor existing models open standards and interfaces for co-develop solutions supporting
to niche industry context, tackling data flexibility and interoperability. areas such as smart energy, mobility,
specificity and system integration Autonomous self-healing networks, and healthcare. Provide developer
challenges. Meanwhile, domains such as powered by agentic AI, can adjust environments, network testing
the network (RAN, core) can benefit from to real-time traffic patterns, manage sandboxes, and partnership
the use of small language models, helping bandwidth across platforms, and opportunities to foster AI innovation.
ensure higher accuracy and optimization. recommend new monetization
For more complex tasks, use RAG to opportunities through better customer
improve the quality of responses by experience and product enhancements.
supplementing models with external
industry-specific knowledge.

Industries in the AI era 18

Public service
Future-ready governments lean into AI

AI offers governments an unprecedented opportunity By automating routine tasks, governments can reallocate human resources
toward high-impact, people-centered activities such as policymaking, community
to reinvent how they deliver services, with the potential engagement, and crisis management. Gen AI can improve productivity and
to set the global standard for innovation and resilience. enhance citizen services through personalized experiences.

For example, generative AI is enabling public agencies to reduce administrative

60% of government CEOs prioritize accelerating transformation, and 69% recognize
burdens, automate case processing, and streamline document-intensive
the need to rewrite organizational playbooks to be future-ready.20
workflows—freeing employees to address more complex citizen needs. In some
AI is a force multiplier for human potential and governance at scale. In an era defined countries, chatbots and virtual assistants powered by generative AI already provide
by volatility, AI enables governments to scale capabilities, empower public servants, citizens with personalized information and services and assist with benefits, permits,
and respond with agility to crises and shock events such as geopolitical conflicts, and licenses.
climate-related disasters, pandemics, and economic upheavals.

In a public service context, AI is a force

multiplier for human potential and
governance at scale.

Industries in the AI era 19

AI can help governments prepare for, respond
to, and recover from shock events more quickly,
while building resilience for the future.

Other potential applications in social services and healthcare petabytes of satellite imagery, mapping flooding events and
can help identify high-risk populations, optimize response other environmental changes in near real-time (See case
protocols, and streamline workflows to improve social and study). These models can help local governments anticipate
health outcomes. disaster impacts, optimize evacuation planning, and safeguard
critical infrastructure. The same AI capabilities can support
AI can also support greater citizen involvement in shaping climate adaptation efforts by evaluating risks to crops,
government services, making them more responsive to buildings, and ecosystems.
changing needs and requirements, such as analyzing citizen
feedback and sentiment and identifying improvement needs Governments play a critical role in helping ensure the safe
of constituents. Going forward, AI can play an instrumental and ethical integration of AI into our societies and the global
role in reimagining the citizen-government relationship, economy. By modeling best practices, governments can
transforming service delivery, and improving communications. spark resilience and innovation around the world. Leading
agencies are establishing AI Centers of Excellence
Leading government agencies are using generative AI to unlock to serve as governance hubs—setting global standards
data-driven insights that strengthen emergency response and for transparency, bias mitigation, and equitable AI
climate resilience. In collaboration with IBM, NASA is implementation. These hubs foster cross-departmental
developing AI geospatial foundation models to analyze collaboration and ensure that public-sector AI adoption
advances the interests of all citizens.

Industries in the AI era 20

Case study

NASA, IBM collaboration maps “We hope that this spirit of open collaboration
can be a model for developing other tools
a safer world with open innovation aimed at unlocking very large datasets.”

and open science. 21

Juan Bernabé-Moreno, Director,
IBM Research Europe (UK and Ireland)

Nearly a quarter of the earth’s population now lives in Together, NASA and IBM are creating AI geospatial foundation models to analyze
petabytes of satellite images to create customized maps of natural disasters and other
a flood zone, where rising seas and more severe storms environmental changes. The goal: provide an easier way for researchers to analyze and
draw insights from large NASA datasets related to natural processes.
put ever more people at risk. Deploying AI to accurately
Potential applications for this first-of-its-kind AI model extend beyond flood mapping to
map flooding events can save lives and property. estimating climate-related risks to crops, buildings, and other infrastructure, evaluating
and monitoring forests for carbon-offset programs, and developing predictive models
that help enterprises mitigate and adapt to climate change.

The family of models was expanded in 2024, developing a foundation model for
weather and climate data. The model was customized for more specific tasks, such as
creating highly localized wind forecasts for renewable energy planning and increasing
the resolution for climate simulations to better understand and plan for the local effects
of climate change.

Industries in the AI era 21

Action guide
for government leaders

1 2 3
Weave AI literacy into the Establish AI governance hubs. Deploy AI to improve
fabric of public service. emergency response.

Upskill public servants in AI tools and Build AI Centers of Excellence (COE) that Simulate disaster scenarios, optimize
workflows and empower them to focus set the global gold standard for ethical emergency logistics, and protect
on solving complex societal challenges. AI use in government, with robust critical infrastructure against climate,
Foster collaboration through AI frameworks for transparency, risk geopolitical, and technological threats.
“sandbox” environments where mitigation, and equitable outcomes. Leverage gen AI for real-time crisis
departments can experiment, innovate, Integrate governance into every stage decision-making and resource
and refine AI-enabled solutions. of AI implementation, and hold leaders optimization. Pair these capabilities
across IT, HR, and policy jointly with hybrid cloud platforms for
responsible for AI outcomes. scalability, data security, and seamless
interagency collaboration.

Industries in the AI era 22

Retail and consumer products
Pivoting to AI-led brands

Retail and consumer products organizations have jumped into

AI usage: more than 80% report AI deployment in demand
forecasting, IT support, HR help desks, trade promotions,
and inventory management.22

The challenge is to extend these early advances into more sophisticated, value- Are retail and consumer organizations prepared to take the bold steps needed
creating activities—from internal departmental use cases to multifaceted ones that to become AI-led brands? Industry executives project that AI’s contribution to
require external collaboration, more complex system integrations, and greater revenue growth will increase by 133% from 2023 to 2027, with significant impacts
human intervention and oversight. on customer experience, product design, and new business models.23 Already,
AI-powered virtual assistants can provide personalized recommendations and
contextual support to customers, while AI-powered tools can create new engaging
digital content and provide more insights into customer personas and preferences.
For example, gen AI can enable hyper-personalization, tailor omnichannel
engagement, and enhance customer support, sentiment analysis and segmentation
for better loyalty programs.

Are retail and consumer organizations

prepared to take the bold steps required
to become AI-led brands?

Industries in the AI era 23

 AI can also optimize operations by streamlining inventory To achieve these larger goals, retailers must tap the value
management and supply chain operations, improving of partnership. Retail and consumer products organizations
demand forecast accuracy, and automating pricing and are increasingly turning to ecosystem platforms to enable
merchandising strategies. Within finance, AI can automate innovation, improve products and services, and ensure
key source-to-pay and compliance processes, while reducing supplier compliance. For example, the product compliance
cost and improving performance. ecosystem can provide accelerated product lifecycle
management with advanced business rules engines
While recognizing the power of AI, industry leaders know and touchless bill-of-materials generation. Integrating
the importance of using it to complement human intuition, end-to-end AI-driven compliance can help ensure that
creativity, and expertise. Ultimately, brands and retailers product lifecycles align with evolving regulatory requirements,
need to identify the sweet spot for AI and human agency consumer safety, and sustainability expectations.
for peak performance.

While recognizing the power of AI, industry

leaders know the importance of using
it to complement human intuition, creativity,
and expertise.

Industries in the AI era 24

Case study

Goodiebox: Delivering beautiful results

through human agency and AI 24
Subscribers to Goodiebox look forward To address immediate challenges and Streamlined planning provides the
support future growth, Goodiebox has Goodiebox team with more time for the
to discovering the latest beauty products, embedded a strategic solution that essential creative process of designing
automates product recommendations, attractive beauty packages for each box,
delivered to the door in a stylish box optimizes current inventory, and tailored to appeal to different audiences.
every month. optimizes parameters to maximize Powerful data analysis enables
customer satisfaction, streamline Goodiebox to understand which
To surprise and delight recipients, the Goodiebox team selects operational efficiency and improve products are popular by country and
a mix of products and brands for inclusion, based on fashion planning. Using stock data and expiration market segment, and which products
and seasonal trends. dates, the system suggests possible lead to subsequent online purchases.
product mixes for the boxes, enabling
With multiple brands and categories competing for inclusion The solution has enabled Goodiebox
Goodiebox to edit selections, assess
in each pack, the team worked from shared spreadsheets to map to cut costs, improve productivity,
impacts on inventory, and reserve
out the best possible combinations. In addition, spreadsheets and—most importantly for commercial
items for current or future boxes. With
were used to manually track stock levels, new product arrival success—enhance the customer
the solution in place, Goodiebox has
times, and expiration dates. But as Goodiebox grew, it became experience.
transformed operational efficiency
clear that working with spreadsheets would not scale, with too
and reported improvements in sourcing
many factors impacting creative decisions.
and designing monthly boxes.

“The process is now less manual, and it is around five times

faster to plan our boxes every month.”
Juliette Giraud, Senior Partnerships Manager (Global Planning), Goodiebox

Industries in the AI era 25

Action guide
for retail executives

1 2 3
Tailor AI to your Enable AI-ready technology Make friends with AI players.
brand priorities. for greater consumer impact.

To move beyond AI-driven productivity To be an AI-first brand requires tearing Traditional strategic partnerships,
gains, focus on where AI can help down silos between finance, technology, focused on physical distribution of
you distinguish yourself from and business leaders and purposefully supplies and products, are no longer
competitors, whether that’s aligning IT with long-term business goals, enough in the age of AI. Tech companies,
personalized customer experience, not just trendy tech. Put different parts startups, and other nontraditional
optimized in-store experiences, of your organization around the same partners are needed for AI model
or faster product ideation and design. table and build solid business cases for development, platforms, and tools. For
Concentrate on what’s most important— where AI can deliver a long-term example, IBM IBV research found that
not on everything that’s possible. competitive edge. Use technology 65% of retail organizations are already
platforms to enable federation and working with or planning to work with
orchestration of AI across functions and a strategic partner to build LLMs for
facilitate cross-functional learning to generative AI initiatives.25 Prioritize
maximize the brand impact of AI. partners who understand your goals,
share your vision, and have a proven
record for integration.

Industries in the AI era 26

Automotive
Driving mobility to new destinations

In many ways, the automotive industry has been at the Cars have become increasingly software intensive. Recent IBM IBV research found
that 74% of industry executives predict cars will be software defined and AI powered
forefront of AI deployment, from autonomous driving in the next decade.26
technology to electric vehicles.
At the same time, the auto industry business model is shifting from selling vehicles
and aftermarket parts to generating more recurring digital revenue. A software-
enabled customer experience can be the key automotive brand differentiator.
Digital- and software-related revenue is expected to be 51% of total industry revenue
by 2035, up from 15% today.27 74% of auto executives agree that this transition
won’t be easy.28 Yet with a boost from AI, some automakers will move ahead faster
than competitors.

Executives are looking to AI to increase the perceived value of products by 22%

and the value of digital services by 37% over the next three years.29 Auto companies
expect AI to reduce time-to-market for digital services by 21%. 30

Autonomous driving may be the most prominent use case of an AI-enabled driving
experience, with 64% of industry executives saying it will be one of the top customer
expectations by 2035.31 Making autonomous systems safe, reliable, and secure will
By 2035, revenue related to digital and software
require massive testing and simulation workloads—with AI predicted to be a key
products is expected to comprise 51% of total enabler. Overall, generative AI is expected to reduce software-defined-vehicle
auto industry revenue, up from 15% today. workloads by nearly 40% in three years.32

Industries in the AI era 27

Case study

Honda streamlines knowledge transfer

with AI to accelerate innovation 33
Honda, headquartered in Japan, using a large multi-model model (LLM) planning and management. Using gen AI,
to convert graph and diagram content Honda’s technical documentation can
is the world’s eighth largest automaker. into text to improve the re-use of now be modeled as sentences, reducing
valuable knowledge. modeling time from three years to one.
As the auto industry shifts gears towards a future powered
This approach expands document
by electrification and intelligence, Honda is navigating this change With a conventional A-ES approach, an utilization areas, boosts business
by transforming complex data into actionable insights, paving the experienced engineer would take three efficiency, and opens up many more
way to greater efficiency and performance. years to create a handbook and one year opportunities for AI-fueled innovation
to create a model from the handbook. The
A key initiative involved implementing an Advanced Expert System in the future.
time savings achieved through A-ES were
(A-ES) to transfer skilled engineers’ knowledge to younger ones.
30% for development and 50% for
The sheer amount of time to create knowledge models posed
a challenge for wider business development, so Honda used
generative AI to extract database knowledge from technical
documents. An IBM pilot validated the feasibility of this approach

“The platform securely leverages our vast amount

of development information and contributes to our dream
of delivering more value to our customers.”
Shigeto Yasuhara, General Manager, Senior Chief Engineer, BEV Development
Division-I, BEV Automotive Development Unit, Electrification Business Development
Operations, BEV Development Center

Industries in the AI era 28

Action guide
for automotive executives

1 2 3
Use AI to redefine Boost complex software Accelerate automotive
mobility experiences. development in product operating model
development with AI tools. transformation.

Safety, reliability, security, and privacy Managing product lifecycles and Apply AI, automation, and agentic AI
are key competitive advantages technical complexity are top software to improve productivity and support
in the auto industry and can enable development challenges. Infusing AI into an organizational culture of continuous
differentiated experiences. Use AI to model-based systems engineering and learning. Augment skilled auto
enhance foundational capabilities, and other applications can make these tools manufacturing workers with AI
develop personalized, unique brand more efficient and productive. and digital tech for more productive
experiences, such as smart charging plant operations. Look beyond your
capabilities for electric vehicles. traditional ecosystem for tech startups,
educational research programs, and
telecommunications and media and
entertainment companies to create
seamless customer experiences that
connect people’s lives and mobility.

Industries in the AI era 29

Oil and gas
Enabling a more profitable
low-carbon future

As oil and gas companies strive to get the most Whether it’s discovering untapped reserves, enhancing predictive maintenance
to help prevent failures before they happen, or driving more efficient production
from existing operations while also charting
processes, AI is the engine that can propel the industry forward.
a course toward a low-carbon future, AI is
For example, AI can reshape how the industry tackles carbon emissions and the
emerging as a catalyst for every aspect of the
climate crisis. Through smarter carbon capture, utilization, and storage (CCUS)
value chain—from exploration to production to technologies, AI not only improves CO2 capture efficiency but also helps ensure
distribution—unlocking new levels of operational the long-term sequestration of carbon in underground storage, prevent leaks,
and create scalable solutions to mitigate emissions.
efficiency, safety, and sustainability.
Pivoting to more sustainable energy solutions need not be a burden but an
opportunity, as AI can optimize renewable energy generation and streamline grid
integration. It can help oil and gas companies reduce emissions and reimagine
AI is the engine that can propel the oil business models for a decarbonized and more resilient energy ecosystem.
and gas industry forward.

Industries in the AI era 30

Case study

Wintershall Dea thinks big

and small with AI@Scale 34
Wintershall Dea is positioning itself as Two types of AI projects have been So far, more than 80 AI use cases have
prioritized: smaller “fireflies”—quick, been identified, with 20 actively pursued,
an industry leader by leveraging AI for scalable solutions to simple problems and the well integrity project already
such as automating data extraction in production.
operational improvements and innovation. from PDF documents—and large-scale
A leading European oil and gas company, Wintershall Dea has projects, including an AI application
trained more than 100 employees in AI and data science and for well integrity monitoring for better
established a Center of Competence (CoC) through an initiative leak detection.
called AI@Scale.

“You must have a business problem. And you need

to understand the challenges in your area and make
sure you have access to high-quality, relevant data and then
prepare the data so you can actually do something with it.”
Ulrich Lorang, Vice President of Data Science, Data Governance, and Data Hub,
Wintershall Dea

Industries in the AI era 31

Action guide
for oil and gas executives

1 2 3
Broaden your Apply AI across exploration, Turn big numbers into big
tech expertise. drilling, production, and assets with a modern
distribution. technology estate.

Create roles for AI data scientists, Develop AI-powered digital twins Invest in scalable data infrastructure and
machine learning engineers, and digital of infrastructure such as drilling rigs, cloud computing capabilities to handle,
twin specialists, which are crucial for pipelines, and refineries to simulate store, and process vast amounts of data
analyzing complex datasets from drilling, real-world conditions and predict system from sensors, drilling equipment, and
exploration, and production activities. behavior under various scenarios. production sites.

Industries in the AI era 32

Utilities
How to supercharge power grid reliability

The utility industry is grappling with aging infrastructure,

rising operational costs, and pressure to transition
to cleaner energy sources.
To help meet these challenges, AI capabilities are coming online to optimize energy The next step is forecasting energy consumption. AI isn’t just reactive, it’s predictive.
storage and improve power grid resilience. Embracing AI enables utilities to navigate By analyzing historical usage data, weather patterns, and other external factors, AI
the complexities of the ongoing energy transition. models can better forecast energy demand, enable utilities to fine-tune energy
generation and distribution, and help prevent outages.
Smart grid management is the first step. Imagine a power grid that “thinks” and
adapts in real time. AI makes this possible by predicting energy demand, balancing The third step is renewable energy integration. Intermittent renewable energy poses
supply and demand instantaneously, and optimizing grid operations. a challenge to grid stability, but AI offers a solution. By analyzing the likely output
of solar, wind, and hydroelectric sources, AI can smooth out fluctuations. The
technology also optimizes energy storage systems, helping ensure that excess
energy generated during peak production periods is available when demand peaks.

For the utility industry, AI isn’t just reactive,

it’s predictive.

Industries in the AI era 33

Case study

GridFM consortium uses AI to

improve power grid operations 35
Today, the electric power grid is strained In response, IBM, along with the Linux These models aim to improve grid
Foundation for Energy, Hydro-Québec, operations, planning, and control by
by extreme weather, aging infrastructure, ETH Zurich, Argonne National Laboratory, leveraging pre-trained data on optimal
SSEN Transmission, and a Swiss power flow problems. GridFMs are
and cybersecurity threats. electricity system operator, are targeted to tasks such as contingency
Further complexity is added to the grid by the rise of electric developing GridFMs—AI foundation analysis, outage prediction, load
vehicles, AI modeling, and cryptocurrency workloads. As renewable models specifically designed for power forecasting, renewable forecasting,
energy sources become more prevalent, the grid must adapt to their grids—to address the challenges of the and dynamic optimal power flow.
variability and fluctuations. low-carbon energy era.
By analyzing vast amounts of data, Grid
FMs promise orders-of-magnitude
increases in simulation fidelity and
support of ‘n-x’ contingency planning.
“Foundation model technologies are a great fit for tackling
the underlying complexity of the power systems. GridFMs can
capture the dependencies across all the data we find in modern
grids in an AI representation and offer new possibilities.”
Ulrich Lorang, Vice President of Data Science, Data Governance, and Data Hub,
Wintershall Dea

Industries in the AI era 34

Action guide
for utilities executives

1 2 3
Energize your workforce. Get the max from the grid. Look to strategic
partnerships.

Identify and hire AI specialists focused Real-time monitoring and predictive Partner with AI solution providers, tech
on optimizing grid operations and data AI analytics can optimize energy startups, or universities specializing in
scientists dedicated to predictive distribution and efficiency. Use AI energy innovation to co-develop
maintenance, plus AI-ready field to redesign maintenance workflows, cutting-edge solutions for smart grid
engineers, operations managers, from power plants to substations management, energy storage, and
and customer service teams. to transmission lines. consumption optimization.

Industries in the AI era 35

Healthcare
Delivering measurable improvements
with AI—now

Healthcare lags other industries in adopting technology due Many AI-based clinical decision-support tools have been developed, but adoption
remains low. To accelerate change, it is essential to develop explainable, transparent,
to regulatory complexity and concerns about patient safety
and accountable AI. Keeping humans in the loop is essential for fostering trust and
and data security. confidence in AI, helping ensure accurate decisions with a focus on patient care.

AI has already demonstrated the potential to revolutionize healthcare without

disrupting patient care when applied to back-office operations and nonfrontline
clinical decisions. The UK National Health Service has used gen AI to automate
clinical coding and processes 500,000 patient episodes in 24 hours. Similarly,
AI-driven automation has reduced processing time of discharge letters from 10
minutes to only four seconds per patient. Human reviewers continue to oversee
the process, helping to ensure accuracy and patient safety.

AI-driven automation has reduced processing AI-powered chatbots are also transforming information retrieval and summarization
time of discharge letters from 10 minutes to only with US health insurers reporting a tenfold increase in claims processing efficiency.
Looking ahead, AI is poised to make an impact in digital scribing, enabling automated
four seconds per patient.
notetaking and summarization. With AI-supported treatment advances on the
horizon, AI can already deliver measurable improvements in patient flow, reduce
missed appointments, unnecessary follow-ups, and delayed discharges.

Industries in the AI era 36

Case study

The UK NHS targets AI innovation to deliver

more efficient, patient-centric care 36
The UK National Health Service (NHS) is facing As process improvements were deployed, In addition, the AI pilot has demonstrated
UHCW NHS Trust began to realize results. greater accuracy and speed than human
unprecedented demand. Despite its best efforts, For example, adjustments to SMS reviewers. The solution was able
reminders reduced no-show rates from to review outpatient clinic letters in just
waiting lists for elective care are growing. 10% to 4% among patients who received 18 hours, compared to the four years
To serve citizens with the world-class healthcare they expect. University Hospitals two SMS reminders. With patients required for a human equivalent. This
Coventry and Warwickshire (UHCW) NHS Trust applies a pioneering mindset and cancelling or rescheduling appointments pilot offers scope for UHCW NHS Trust
innovative approach to patient-centric care. In collaboration with IBM, the trust piloted earlier, the trust can now re-purpose to further improve patient classification
AI and other analytics to identify areas where productivity could be bolstered. these slots to boost clinic activity by up and shorten waiting lists.
to 6%. This efficiency, in turn, helped
UHCW NHS Trust to see around 700
extra patients each week without adding
“You’re talking potentially reducing the waiting lists by 10%. additional staff. Projections estimate that
this could contribute to a 10%–15%
With 7.7 million currently on a waiting list, a large number
patient backlog reduction.
of these will be patients waiting for their first outpatient
appointment—that’s huge. And it is absolutely scalable
because I’ve seen the results from other hospitals where
it’s being further trialed.”
Professor Andy Hardy, Chief Executive Officer, University Hospitals Coventry and
Warwickshire NHS Trust

Industries in the AI era 37

Action guide
for healthcare executives

1 2 3
Start with immediate impact. Safeguard ethical AI and Keep humans in the loop.
patient data privacy.

Don’t be distracted by clinical AI in the As gen AI and agentic AI are integrated Emphasize that AI augments but does
short term. Patient-facing tools may into healthcare, it’s crucial to maintain not replace human capabilities. Have
eventually transform the industry, but transparency and ethical standards as AI systems collaborate with healthcare
quick wins are already available by well as protect patient data. Staff should workers to enhance decision making.
implementing gen AI in back and middle be trained on responsible AI practices. Highlight success stories that
office operations. demonstrate AI’s potential to
upskill employees and improve
overall job satisfaction within
healthcare organizations.

Industries in the AI era 38

Insurance
Bridging the AI trust gap

In an industry defined by prudence and risk mitigation, seizing Insurers can differentiate by using AI to support new types of tailored products and
bring them to market faster with a more targeted approach. This means delivering
the opportunities of AI can feel like a balancing act. not just personalization, but actual matches between customers, their risks, and
While 77% of industry executives say they need to adopt gen AI quickly to keep the insurer’s products. Trust and quality need to be ironclad, given an insurer’s
up with rivals, only half say it is more of an opportunity than a risk. 37 investment in a brand and its regulatory constraints.

The product insurers sell is a promise and executives are well aware that customer AI can also help insurers expand product ranges: executives anticipate faster product
trust is key to long-term success. Everything providers do must serve that trust creation in 2025, accelerating speed to market by 3.6 months and increasing the
imperative—which includes overcoming customer apprehension about AI. In fact, number of added products by 50%.39
only 26% of insurance customers trust the accuracy and reliability of advice from
gen AI, and almost two-thirds want to know and be asked for consent when gen AI
is used.38

Insurers can differentiate offerings by using AI

to support new tailored products and bring them
to market faster with a more targeted approach.

Industries in the AI era 39

Perspective

Life insurance companies

simplify complex claims
At larger life insurance companies, claims adjusters Nevertheless, effective claims handling Several life insurers in North America
is key to customer satisfaction and trust. turned to a range of different gen AI
struggle to handle the sheer volume of information and And large claims can have significant models to address claims challenges;
business impact on any life insurer, classify claims by risk and peril; extract
touches required to manage large life benefits claims. from litigation cost to loss adjustment. key data and other facts; analyze the case
Even small improvements in effective and summarize it for final resolution by
complex claims handling can generate a human claims adjuster. As a result,
outsized returns. insurers cut transaction support time
in half, reduced summarization costs
by up to 90%, and significantly increased
customer claims satisfaction.40

Even small improvements in complex claims

handling can generate outsized returns.

Industries in the AI era 40

Action guide
for insurance executives

1 2 3
Address the trust divide. Match products intelligently Focus on data accessibility.
to customers.

Shift AI thinking from “it should work” Leverage gen AI to connect products Choose AI tools that can leverage
to “should it work?” Don’t force one AI and services to customer needs more near-edge data, such as telematics
model to fit all scenarios; plan for a future accurately. Deploy AI locally to provide summarization at the point of data
of many AI models. Actively govern seamless customer service and advice. collection. Deploy data frameworks
model performance around fairness, that federate meaningful
transparency, and hallucination customer interactions.
mitigation. Ensure all models have
explainable results and understand the
confidence level of decisions. Empower
humans to make better decisions as
opposed to a pure automation approach.

Industries in the AI era 41

Life sciences
From drug discovery to agentic AI

AI-enabled drug discovery and development A variety of biomedical foundation models are available to support drug design,
including open-source models that use AI to generate molecular designs based on
is a hot topic in the life sciences industry. a set of constraints such as target binding, solubility, toxicity, and ease of synthesis.

As AI progresses from individual task-based tools to AI agents, the possibilities

get even richer. Life sciences organizations can optimize and automate complex,
multistep workflows from genomic analysis to hypothesis synthesis to visual data
interpretation. These systems combine human creativity with AI’s ability to navigate
vast data landscapes, execute repetitive tasks, and dynamically refine strategies.

For example, in virtual labs, where human researchers are teamed with LLM agents,
AI is reducing the cost and time to design high-potential molecules.41 In wet lab
experimental workflows, multiagent frameworks can design, build and iterate
With AI, life sciences organizations can optimize molecules, creating a fully automated “lab-in-the-loop” for R&D or manufacturing.
and automate complex, multi-step workflows For clinical content generation, multiagent frameworks can accelerate the writing of
complex clinical trials submissions, pharmacovigilance documentation, and medical
from genomic analysis to hypothesis synthesis
affairs education materials.
to visual data interpretation.
Operationalizing AI requires the responsible use of AI, and this is especially true
in the highly regulated life sciences industry. In a recent survey, 43% of life sciences
respondents stated that they had concerns about privacy and confidentiality of data
and information, with 49% concerned about data accuracy or bias.42 The challenge
is to assure the trustworthiness and quality of AI outputs while scaling impact.

Industries in the AI era 42

Case study

Informed Genomics helps save lives

with AI-driven cancer detection
Colorectal cancer is the fourth most common cancer Building on its recent successful launch With CanSense-CRC, colorectal cancer
of an accurate, non-invasive bladder can be detected using a blood sample
in the UK and is responsible for 700,000 deaths cancer test, Informed Genomics is now taken by a healthcare professional.
turning its attention to improving The CanSense solution then runs spectral
globally each year.43 44 colorectal cancer diagnosis through analysis of the blood sample and sends
Fortunately, 54% of bowel cancer cases are preventable and early intervention is crucial a new partnership with CanSense. Spun this data to a proprietary AI model.
to delivering positive outcomes for patients.45 out from a research project started at Trained extensively with real-world
Swansea University, CanSense has samples and data, the CanSense AI then
While colonoscopies are traditionally the most accurate way of determining if a patient combined the power of spectroscopy detects whether evidence of colorectal
has colorectal cancer, AI holds the potential to make cancer diagnosis faster, cheaper with AI to develop a quick, inexpensive, cancer is present in the blood sample.
and less invasive. UK-based genomics pioneer Informed Genomics is on a mission to and non-invasive blood test for The solution has a 90% sensitivity
harness innovations in science and technology to improve cancer diagnostics. colorectal cancer. to help ensure accurate results.46

“To take CanSense out of the university lab and bring it to

market, we looked for scalable technology that could support
compute-intensive workloads and help us to ensure excellent
governance of the AI powering our solution.”
Adam Bryant, CEO, CanSense

Industries in the AI era 43

Action guide
for life sciences executives

1 2 3
Get your biopharma Accelerate regulatory Prescribe robust oversight
data ready. workflows to enable and governance structures.
long-term opportunities.

The life sciences are data-rich, but silos Gen AI systems can help deliver Strike a balance between leveraging AI’s
impede analyses and duplicate efforts. products to market faster by speeding potential to accelerate R&D and putting
Building a strong data foundation up regulatory submissions and drafting in controls which allow monitoring and
combines data management plans reimbursement dossiers faster. Such support consistency, transparency and
and connects silos across business productivity gains can support more explainability of models to build trust.
units to support effective AI programs. extended AI efforts to transform drug This means creating regulatory
Continuous learning and adaptation design and discovery. frameworks that encourage AI
mechanisms should be incorporated innovation while helping to ensure
into AI models, so they stay current compliance to high data standards.
with evolving scientific knowledge
and technological advancements.

Industries in the AI era 44

Authors IBM Institute for Related reports
Business Value 5 trends for 2025: Ignite innovation with people-powered AI
IBM Institute for Business Value. December 2024.
Neil Dhar For two decades, the IBM Institute for
Global Managing Partner Business Value has served as the thought https://www.ibm.com/thought-leadership/institute-business-
IBM Consulting leadership think tank for IBM. What inspires value/en-us/report/business-trends-2025
www.linkedin.com/in/neildhar/ us is producing research-backed,
neil.dhar@ibm.com technology-informed strategic insights that
Consulting reimagined, powered by AI
help leaders make smarter business
decisions. From our unique position at the IBM Institute for Business Value. October 2024.
Salima Lin
intersection of business, technology, and https://www.ibm.com/thought-leadership/
Global Managing Partner
society, we survey, interview, and engage institute-business-value/en-us/report/consulting-ai
IBM Consulting
with thousands of executives, consumers,
www.linkedin.com/in/
and experts each year, synthesizing their
salima-lin-b17bb71/ The CEO’s guide to generative AI: Tailor-made gen AI delivers
perspectives into credible, inspiring, and
salima.lin@us.ibm.com precision power
actionable insights. To stay connected and
informed, sign up to receive IBV’s email IBM Institute for Business Value. July 2024.
Matthew Candy newsletter at ibm.com/ibv. You can also https://www.ibm.com/thought-leadership/institute-business-
Global Managing Partner find us on LinkedIn at ibm.co/ibv-linkedin. value/en-us/report/ceo-generative-ai
IBM Consulting
www.linkedin.com/in/mattcandy
matthew.candy@uk.ibm.com
The right partner for
Luq Niazi a changing world
Global Managing Partner
IBM Consulting At IBM, we collaborate with our clients,
www.linkedin.com/in/ bringing together business insight,
luq-niazi-58b0a13/ advanced research, and technology to give
luq.niazi@uk.ibm.com them a distinct advantage in today’s rapidly
changing environment.
Jacob Dencik
Research Director
IBM Institute for Business Value
www.linkedin.com/in/
jacob-dencik-126861/
jacob.dencik@be.ibm.com

Industries in the AI era 45

Notes and sources
1. 5 trends for 2025. IBM Institute for Business Value. December 11. The CEO’s guide to generative AI: Open innovation & ecosystems.
2024. https://www.ibm.com/thought-leadership/institute- IBM Institute for Business Value. 2023. https://www.ibm.com/
business-value/en-us/report/business-trends-2025 thought-leadership/institute-business-value/en-us/report/
ceo-generative-ai/ceo-ai-open-innovation
2. 6 hard truths CEOs must face. IBM Institute for Business Value.
September 2024. https://www.ibm.com/thought-leadership/ 12. 6 hard truths CEOs must face. IBM Institute for Business Value.
institute-business-value/en-us/c-suite-study/ceo September 2024. https://www.ibm.com/thought-leadership/
institute-business-value/en-us/c-suite-study/ceo
3. The CEO’s guide to generative AI: Enterprise Operating Model. IBM
IBV Institute for Business Value. September 2024. https://www. 13. Ramamurthy, Shanker, and Paolo Sironi. 2025 Global
ibm.com/thought-leadership/institute-business-value/en-us/ Outlook for Banking and Financial Markets. IBM Institute
report/ceo-generative-ai/ceo-ai-enterprise-operating-model for Business Value. January 2025. https://www.ibm.
com/thought-leadership/institute-business-value/en-us/
4. Ibid.
report/2025-banking-financial-markets-outlook
5. Goehring, Brian, Manish Goyal, Ritika Gunnar, Anthony Marshall,
14. 6 hard truths CEOs must face-Banking and Financial Markets. IBM
and Aya Soffer. The ingenuity of generative AI: Unlock productivity
Institute for Business Value. September 2024. https://www.ibm.
and innovation at scale. IBM Institute for Business Value. June
com/thought-leadership/institute-business-value/en-us/c-suite-
2024. https://ibm.co/scale-generative-ai
study/ceo
6. 6 hard truths CEOs must face. IBM Institute for Business Value.
15. NatWest launches Cora+, the latest generative AI upgrade to the
September 2024. https://www.ibm.com/thought-leadership/
bank’s digital assistant. NatWest Group. June 10, 2024. Link
institute-business-value/en-us/c-suite-study/ceo
resides outside of ibm.com. https://www.natwestgroup.com/
7. 5 trends for 2025. IBM Institute for Business Value. December news-and-insights/news-room/press-releases/data-and-
2024. https://www.ibm.com/thought-leadership/institute- technology/2024/jun/natwest-launches-cora-plus-the-latest-
business-value/en-us/report/business-trends-2025 generative-ai-upgrade-to-t.html
8. 6 hard truths CEOs must face. IBM Institute for Business Value. 16. 6 hard truths CEOs must face. IBM Institute for Business Value.
September 2024. https://www.ibm.com/thought-leadership/ September 2024. Unpublished data.
institute-business-value/en-us/c-suite-study/ceo
17. Ibid.
9. Butner, Karen. The power of AI & automation: Intelligent workflows.
18. bid.
IBM Institute for Business Value. July 2023. https://www.ibm.
com/thought-leadership/institute-business-value/en-us/report/ 19. Unpublished IBM case study.
automation-intelligent-workflows 20. 6 hard truths CEOs must face-Government. IBM Institute for
10. 5 trends for 2025. IBM Institute for Business Value. December Business Value. September 2024. Unpublished data.
2024. https://www.ibm.com/thought-leadership/institute- 21. “Photos: How IBM and NASA’s new geospatial model is changing
business-value/en-us/report/business-trends-2025 our view of the world.” IBM Research blog. December 6, 2024.
https://research.ibm.com/blog/prithvi2-geospatial

Industries in the AI era 46

22. Wadell, Dee, Joe Dittmar, Karl Haller, Konstantinos Didaskalou, 36. “Patient-centered care from AI-centered efficiencies.” IBM case
and Jane Cheung. Embedding AI in your brand’s DNA. IBM Institute study. March 2024. https://www.ibm.com/case-studies/
for Business Value. January 2025. https://www.ibm.com/thought- uhcw-nhs-trust
leadership/institute-business-value/en-us/report/ai-retail-cpg
37. Goehring, Brian, Manish Goyal, Ritika Gunnar, Anthony Marshall,
23. Ibid. and Aya Soffer. The ingenuity of generative AI: Unlock productivity
and innovation at scale. IBM Institute for Business Value. June
24. “Goodiebox delivers beautiful results.” IBM case study. 2024.
2024. Unpublished data for 124 global insurance leaders.
https://www.ibm.com/case-studies/goodiebox
38. “You can’t win if you don’t play: The future of insurance with
25. Wadell, Dee, Joe Dittmar, Karl Haller, Konstantinos Didaskalou,
generative AI.” IBM blog. November 14, 2024. https://www.ibm.
and Jane Cheung. Embedding AI in your brand’s DNA. IBM Institute
com/thought-leadership/institute-business-value/blog/
for Business Value. January 2025. https://www.ibm.com/thought-
insurance-generative-ai
leadership/institute-business-value/en-us/report/ai-retail-cpg
39. Ibid.
26. Suzuki, Noriko, Daniel Knödler, Hilary M. Cain, and Stefano
Marzani. Automotive 2035. IBM Institute for Business Value. 40. Unpublished client case studies
December 2024. https://www.ibm.com/thought-leadership/
41. Swanson, Kyle, Wesley Wu, Nash L. Bulaong, John E. Pak, and
institute-business-value/en-us/report/automotive-2035
James Zou. “The Virtual Lab: AI Agents Design New SARS-CoV-2
27. Ibid. Nanobodies with Experimental Validation.” bioRXiv.org. November
12, 2024. https://www.biorxiv.org/content/10.1101/2024.11.11.6
28. Ibid.
23004v1.full.pdf
29. Ibid.
42. Goehring, Brian, Manish Goyal, Ritika Gunnar, Anthony Marshall,
30. Ibid. and Aya Soffer. The ingenuity of generative AI: Unlock productivity
31. Ibid. and innovation at scale. IBM Institute for Business Value. June
2024. https://ibm.co/scale-generative-ai
32. Ibid.
43. Bowel cancer. Bowel Cancer UK. Link resides outside of ibm.com.
33. “IBM helps boost Honda’s efficiency with AI-driven knowledge https://www.bowelcanceruk.org.uk/about-bowel-cancer/
extraction, expecting to slash documentation modeling time by bowel-cancer/
67%.” IBM case study. 2024. https://www.ibm.com/case-studies/
honda-watsonx 44. Facing the challenge together. CanSense. Link resides outside of
ibm.com. https://cansenseltd.com
34. Drilling down into data to transform the oil and gas industry.” IBM
case study. March 2023. https://www.ibm.com/case-studies/ 45. Bowel cancer statistics. Cancer Research UK. Link resides outside
wintershall-dea of ibm.com. https://www.cancerresearchuk.org/health-
professional/cancer-statistics/statistics-by-cancer-type/
35. Hess, Peter. “An IBM team is exploring how AI can prepare
bowel-cancer
the electrical grid for the low-carbon era.” IBM Research
blog. December 4, 2024. https://research.ibm.com/blog/ 46. Facing the challenge together. CanSense. Link resides outside of
how-ai-can-prepare-the-electrical-grid-for-the-low-carbon-era ibm.com. https://cansenseltd.com

Industries in the AI era 47

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