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Not Sure Where To Begin With AI? Start With Your 2026 Strategic Business Plan.

Strategies for Life Science & Medical Device & Development Companies


Over the course of 2025 I had the opportunity to meet with dozens of executives at MD&M West (Med Device Design, Development & Contract Manufacturing) and BIO (Life Science Contract Research Organizations & Contract Development/Manufacturing Organizations). Nearly to a person, these executives and business owners knew they had to embrace AI…sooner rather than later, but they weren’t sure where to begin.


Fortunately, we’re still at the threshold of the AI revolution in Med Device and the Life Sciences, but it’s changing fast. Some data points worth considering:


  • AI in Medical Device was estimated to reach $10.8 billion in 2024 and is expected to grow to $34.2 billion by 2029, a CAGR of 28.9%.(1)

  • Precedence Research reported the U.S. IoT medical devices market size was ≈ $20.43 billion in 2024 and is projected to be worth ≈ $254.06 billion by 2034, a CAGR of 28.67%.(2)

  • The specific segment utilizing AI within IoT medical devices is expected to see similar high double-digit annual growth rates, aligned with the broader market.(3)

  • More specifically, the Agentic AI market in healthcare was valued at ≈ $493.9 million in 2024 and expected to grow to $21.1 billion by 2034, representing a breathtaking 46.1% CAGR.(4)

  • The U.S. medical device outsourcing market is projected to nearly double, rising from approximately $31 billion in 2024 to over $63 billion by 2030, at a CAGR of 13%.(5)

  • Outsourcing firms that offer expertise in automation, AI, precision engineering, advanced materials, and compliance are best positioned for growth, enabling OEMs to innovate and compete in the rapidly evolving U.S. medical device market through 2030.(6)

With this coming wave, now is the ideal time to evaluate how you’re going to adopt, integrate and leverage AI technologies to drive strategic differentiation, competitive positioning and profitable growth over the next fives years. When wondering where to begin, I suggest starting with your formal Strategic Business Plan for 2026. (Of note, enterprises that have adopted AI technologies report productivity and process efficiency gains of 25–40% post-deployment, with manufacturing firms targeting up to 50% productivity boosts using agentic robotics and scheduling agents.)(7)


The Self-Assessment

Having led Strategic Business Planning processes for the past three decades, engaging in this highly disciplined approach to planning can help sort out and prioritize where to start on your AI journey. The initial step in this process is the Self-Assessment, where we identify the organization’s Strengths, Weaknesses and Core Competencies. Core Competencies are differentiated strengths that are unique to your company’s value proposition and would be difficult for your competition to emulate.


By taking the first step of identifying these organizational attributes and shortcomings, you can begin to explore how various AI platforms (e.g., Agentic, LLM, etc.) can enhance your Strengths, close process and performance gaps emerging from your Weaknesses, and contribute to your Core Competencies for competitive advantage.


This initial step can help you identify and prioritize opportunities to apply AI technologies, set a baseline for evaluating various AI products, initiate an AI budget, and establish a set of metrics to measure your ROI on any future investments.


The Market Assessment

Perhaps the most straightforward and immediately accessible application of Large Language Models is in secondary market research. Insightful inquiries on a variety of these platforms can shave weeks off from the traditional approach to conducting this level market research. This research can check early assumptions and help guide direct market research, further contributing to the cost efficiency of this critical step.


Opportunities & Threats

This is where drawing upon a human-in-the-loop can deliver insights into new growth opportunities, process improvements, and potential risk factors that are emerging over the horizon. Informed by a combination of AI driven research and old-school Strategic Planning, your AI Strategic Plan will begin to emerge from the fog of uncertainty.


For more information on how Performance Transformation can help you navigate this emerging environment, please give us a call at (828) 808-2955 or email us at terry@performtransform.com. We’d be delighted to have a complementary conversation!


© 2025, Performance Transformation, Inc.


Performance Transformation is an 18 year old Medical Device and Life Science Strategic Consultancy focused on rapidly growing customer valuations and profitable growth. Our work with Big Data, Machine Learning, and Data Mining projects date back to 2009, and we’ve spent the last year immersed in real-world Use Case development and custom Agentic AI applications.


Sources:

(1) AI in Medical Devices, Global Research Report 2025, The Business Research Company, January, 2025.

(2) IoT Medical Devices Market Transforming Healthcare Through Smart, Connected Technologies, Precedence Research, June, 2025.

(3) AI in IoT Market Research Report, Market Research Future, September, 2025.

(4) Agentic AI In Healthcare, Insight Ace Analytic, April, 2025.

(5) U.S. Medical Device Outsourcing Market, Market, Research.

(6) Key Trends Drive the Future of Medical Device Manufacturing, Medical Design Briefs, 2025.

 
 
 

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