Gen AI in Life Sciences - Build or Buy?
As Life Sciences companies navigate the complex landscape of GenAI adoption, a critical question arises: build or buy? In this article, we explore the pros and cons of each approach, drawing on real-world examples and expert insights. Whether you're a seasoned executive or an innovation leader, this post will provide valuable perspectives to consider as you weigh your options for leveraging GenAI in your organization.
Unlocking the Power of GenAI in Pharma: To Build or to Buy?
As a leader in the pharmaceutical industry, you stand at a crossroads. One path leads to innovation through in-house development, while the other leads to strategic partnerships. Which path will you choose? This is a question all the co-founders at Peer have been asked repeatedly throughout their careers, even today as we speak to customers about GenAI-powered medical writing.
The Pitfalls of In-House Development
Building your own AI solutions can be tempting, promising control, customization, and a competitive edge. However, beware the hidden perils. Consider Merck's SAP implementation, which spiraled from a $400 million project to a $1 billion behemoth over eight years [1]. This financial quagmire is all too common in pharma IT projects.
The Strategic Advantage of Buying
Opting for a vendor solution isn't just safer; it's smarter. Pfizer's rapid COVID-19 vaccine development, enabled by strategic partnerships with AI companies, is a prime example [2]. By leveraging external expertise, Pfizer focused on what they do best - creating life-saving drugs.
Speed to Market
Purchasing a GenAI solution offers rapid deployment, enabling companies to benefit from advanced AI capabilities without lengthy development. In an industry where time is of the essence, speed to market provides a substantial competitive edge. Consider the following:
Reduced Time-to-Value: With a purchased solution, companies can start realizing the benefits of GenAI within months, not years.
Faster Regulatory Approvals: By leveraging pre-built solutions, companies can accelerate regulatory approvals, getting products to market sooner.
Competitive Advantage: Rapid deployment enables companies to respond quickly to market changes, staying ahead of competitors.
Cost Efficiency
Building a GenAI system from scratch requires significant investment. Conversely, purchasing a solution involves predictable licensing fees, which are often more cost-effective. Consider the following:
Lower Upfront Costs: Purchasing a solution eliminates the need for significant upfront investments in infrastructure and personnel.
Predictable Ongoing Costs: Licensing fees provide transparency and predictability, making it easier to budget and plan.
Reduced Maintenance Burden: Vendors handle maintenance and updates, freeing internal resources for core activities.
Access to Expertise and Support
Buying a GenAI solution provides access to specialized vendors' expertise and support. Consider the following:
Deep Domain Knowledge: Vendors possess extensive knowledge of GenAI and its applications in pharma, ensuring effective implementation.
Ongoing Support and Updates: Regular updates and comprehensive support ensure companies stay current with the latest advancements.
Scalability and Flexibility: Vendors can adapt solutions to meet evolving business needs, ensuring long-term value.
Reduced Risk and Maintenance Burden
Developing a GenAI solution in-house comes with inherent risks, including technical debt and resource drain. Without ongoing support and updates, in-house solutions can become outdated, leading to increased maintenance costs and diverting internal resources away from core activities.
Purchased solutions mitigate these risks by providing ongoing support, regular updates, and new features, reducing the burden on internal teams and ensuring the solution stays current and effective. With a commercial solution, you can leverage dedicated support teams, scalability, and adaptability to changing business needs, freeing up internal resources to focus on driving business value.
Customization and Scalability
Modern GenAI solutions are flexible and scalable, catering to life sciences companies' diverse needs. Many vendors offer customization options, ensuring the solution aligns with specific requirements.
Focus on Core Competencies
By choosing to buy, life sciences companies can focus on their core competencies — advancing science and improving lives. Leveraging a commercial solution allows companies to harness AI power without diverting attention from primary goals.
Conclusion
For life sciences companies, buying a GenAI solution offers numerous advantages. At Peer AI, we understand the unique challenges and opportunities in this sector. Our solutions provide the perfect balance of innovation, customization, efficiency, and support.
References:
[1] Computerworld, "Merck's massive SAP implementation"
[2] MIT Technology Review, "How AI helped Pfizer develop its coronavirus vaccine"