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AI and the R&D revolution

How can this fast-changing technology help providers update products more efficiently and successfully at each stage of R&D

In a world of fast-changing consumer preferences and increasing choice, companies that want to stay ahead must work continuously to ensure that their goods and services satisfy the customer. In 2023 McKinsey said that big industries, including automotive, telecoms and consumer products, anticipate that a third of sales, worth $30tn over five years, will come from new products.

Advancement is key and the level of fresh funds flowing into research and development is considerable. According to the latest UK statistics, £71bn was spent on R&D in 2022, of which £50bn came from the business sector. In the US the figure is estimated to be $886bn with business accounting for $690bn. 

The return from using advanced technologies is considerable. Looking at the pharma industry, Accenture estimates that scaled use and redesigned workflows will mean that medicines can be brought to market four years faster, earning an extra $2bn for each successful drug. Costs of $2.6bn to $6.7bn could also be scythed by up to 45 per cent.

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