New Report Expects AI to Drive Revenue Management Value in 2025

Model N, a leader in revenue optimization and compliance for life sciences and high-tech companies, published its seventh annual State of Revenue Report. 

The report reveals that while 87% of industry leaders are shifting toward automated revenue management operations, nearly 60% still rely on multiple solutions. Additionally, 62% are using or planning to implement generative artificial intelligence (GenAI) for revenue optimization activities, including deal analytics, process automation, and forecasting. Research found that companies with more than 10,000 employees are 51% more likely than smaller organizations to use a unified revenue management solution.  

“Life sciences and high-tech manufacturers are using advanced technologies to automate and optimize revenue operations with data-driven insights,” said Suresh Kannan, Model N Chief Product Officer. “This year’s State of Revenue Report highlights the value of integrating GenAI for revenue management and transitioning to a unified solution. By harnessing AI and consolidating platforms, organizations can unlock greater revenue optimization opportunities, boost efficiency, and drive growth.”

Medtech industry companies are modernizing their revenue management approach to navigate a complex regulatory landscape. Regulatory changes like healthcare price transparency (45%) and the European Union’s implementation of the Medical Device Regulation (MDR) (40%) top the list of impacts on revenue programs. 

Nearly two-thirds of medtech companies are seeing shifts as AI and automation are integrated into healthcare operations, and leaders are beginning to incorporate these approaches into their own company’s revenue optimization and compliance processes. Looking ahead, 38% of leaders are focusing on adapting to value-based care models, expecting further impacts on revenue optimization functions.

High-tech companies are advancing their use of channel data, as 87% regularly use channel sales data to inform price management and optimization processes. 74% of high-tech manufacturers are planning to implement GenAI solutions.

Supply chain disruption continues to influence strategy, prompting 53% of companies to diversify suppliers, 51% to deploy new technologies, and half to implement sustainability initiatives. Additionally, 95% of high-tech leaders express concerns about grey market sales, implementing measures such as removing unauthorized sellers and enhanced contract enforcement.