Tech Transformation in Healthcare and Life Sciences

Healthcare and Life Sciences (HCLS) is an industry that touches every one of us. Whether it’s the nurse at urgent care, the medicine that helped a loved one recover, or the clinical breakthrough that extended someone’s life, this vital sector is deeply personal and growing rapidly.

But with rapid growth comes complexity. Today, the HCLS industry is navigating a rapidly evolving landscape shaped by talent shortages, regulatory pressures and technological transformation. At the center of this evolution is artificial intelligence (AI), a force that is reshaping everything from drug discovery to workforce strategy.

AI: The Cornerstone of Future Health Systems

AI adoption in HCLS is accelerating. Hospitals are using it for early diagnosis, remote monitoring, and real-time data-driven analysis that helps provide an optimized and more personalized patient experience. Pharmaceutical companies are leveraging AI to speed up R&D and reduce time-to-market for critical treatments. Yet, despite its promise, only 19% of HCLS employers say they are fully leveraging AI in their hiring processes.

This gap between potential and impact is striking. While 96% of C-suite leaders believe AI will boost productivity, 77% of workers feel it has decreased theirs. Nearly half say they don’t understand how AI will help them at all.

This disconnect highlights a critical challenge: technology alone isn’t enough. Organizations must invest in workforce education, upskilling and change management to unlock AI’s full potential.

The Patent Cliff and R&D Acceleration

Between 2025 and 2030, the pharmaceutical industry faces a $236 billion “patent cliff,” with nearly 70 blockbuster drugs losing exclusivity. This creates urgency for innovation and reinvestment in R&D. More than half of biopharma executives say they need to rethink their development strategies.

AI is central to this transformation. Digital twins, predictive analytics, and AI-driven discovery are helping companies accelerate drug development. But talent remains a bottleneck. A quarter of industry leaders say they struggle to fill complex technical roles.

The Skills That Matter Most

As AI and machine learning become integral to HCLS operations, demand is rising for professionals who can blend clinical expertise with data fluency and data-driven decision-making. Roles that combine technical skills — such as data science, software engineering or machine learning — with deep life sciences or clinical knowledge will fuel innovation and enhance patient care, helping an industry that is always striving for efficiency.

But while employers seek those with advanced technological understanding, interpersonal skills remain irreplaceable. Ethical judgment, patient service, and communication are among the most difficult to automate, which creates a dual imperative for businesses: upskill for AI while also investing in human-centric capabilities that can provide more personalized care and improve the patient experience.

Twin Factories and the Global Talent Equation

One of the most intriguing trends we’re seeing is the rise of “twin factories” — parallel manufacturing hubs created in another region to counter supply-chain challenges. These facilities help pharmaceutical and manufacturing companies mitigate geopolitical risks, localize supply chains and reduce costs. But they also reshape the labor market.

When you create a new manufacturing site, think about all the roles that go into that type of factory: equipment technicians, project managers, scientists, engineers, security, custodial services, and more. New sites generate demand for a whole range of skills that attract an entire workforce and their families to a region.

Cross-border solutions are also on the rise. Remote-capable roles in R&D and data science can be filled globally, contrary to the on-site manufacturing jobs that require localized talent. In either case, workforce strategists have begun heavily investing in upskilling and reskilling to combat the talent shortage the HCLS industry continues to face.

Cost Pressures and Strategic Workforce Planning

Economic uncertainty and rising supply chain costs are forcing HCLS organizations to rethink hiring. In Q4 2025, 46% of employers planned to keep headcount flat, while 16% anticipated reductions. Hiring is increasingly selective, focused on high-skill and frontline roles.

Strategic workforce planning is more important than ever. Merger and acquisition (M&A) activity is expected to rebound in 2026, especially in high-growth areas like oncology and AI therapeutics. But nearly one-third of M&A failures stem from cultural clashes and talent loss. HR leaders must proactively manage transitions, optimize contingent workforce strategies, design retention strategies for critical talent, and strategically reallocate expertise — all while supporting impacted employees through career transition programs.

A Human-Centered Tech Future

As technology reshapes the Healthcare and Life Sciences industry, one truth remains constant: people are at the heart of it. AI, digital tools and twin factories offer unprecedented potential, but their success hinges on how well organizations prepare their workforce to embrace and lead this transformation.

At ManpowerGroup, we don’t just observe change; we enable it. Our global Healthcare & Life Sciences vertical is designed to help organizations adapt, grow, and thrive in a tech-enabled future. We partner with clients to solve their most pressing workforce challenges across four key dimensions:

• Talent Shortages & Skill Gaps: Skills-based hiring, upskilling, reskilling and cross-border solutions.
• Technological Advancements: Change management, digital transformation and AI enablement.
• Regulatory & Compliance Challenges: Cost savings, system monitoring and proactive planning.
• Workforce Considerations: Career transition, total talent management and strategic consulting.

The future of HCLS will be defined by how well we combine innovation with empathy, automation with human insight, and strategy with action. At ManpowerGroup, we bring deep industry expertise, scalable talent solutions and an unwavering commitment to human potential.

To learn more, download your complimentary copy of our 2026 Healthcare and Life Sciences World of Work Outlook.