New research points to regulatory compliance and operational hurdles as reasons for slower implementation, with 76% of medtech companies not using AI in product processes.
A new survey finds that the medical device industry is falling behind other major sectors in the adoption of artificial intelligence (AI) for product operations, with strict regulatory standards and data privacy concerns contributing to slower implementation.
The research, commissioned by Propel Software, shows that only 24% of medical device companies report using AI in their product processes. This rate is significantly lower than in other surveyed industries, with a 50% lag versus high tech. According to the findings, three-quarters (76%) of medical device respondents do not use AI in product operations.
The report suggests this caution stems from the need to remain compliant with global regulations that protect patient data throughout the product lifecycle. However, this slower pace of adoption corresponds with notable operational challenges. One-third (33%) of medical device respondents cited team coordination as their biggest challenge in product innovation, the highest percentage across all industries surveyed.
Impact on Innovation and Data Management
Additionally, the survey revealed that a quarter (25%) of medical device companies have no formal process for gathering customer or market feedback to inform product decisions, also the highest percentage among the industries. Another 23% reported that getting accurate product data and specifications was their biggest challenge when launching and promoting new products.
For the 24% of medical device companies that are actively using AI, the investments are yielding positive results. These benefits include increased productivity (44%), a greater competitive advantage (35%), and reduced expenses (31%).
“Our customers and prospects cannot ignore business inefficiencies in today’s dynamic markets, and AI is rewriting the rules for product companies,” says Ross Meyercord, CEO of Propel Software, in a release. He notes that solutions can be designed to address compliance concerns “by incorporating AI into our existing validated platform, with workflows and business rules configured by our medical device customers. This allows them to ensure the AI remains compliant, delivering value by streamlining product operations and driving smarter decision making.”
The State of Product Innovation 2025 survey collected responses from 800 staff members across product management, engineering, quality, and other departments in the US, including 200 respondents from the medical device industry.
ID 187466172 © Pop Nukoonrat | Dreamstime.com
