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Life sciences had a rough 2025 — the least active IPO market in over a decade — but AI adoption across the sector accelerated anyway. Problem is, the governance infrastructure is still being built around it. Wiggin and Dana partner Katie Rubino examines what that looks like in practice.
2025 began as a year filled with optimism for what was to come. After a rocky patch for the life sciences industry fraught with downturns in IPOs, fundraising hurdles and a new administration, many were hopeful that the life sciences industry would show signs of a recovery.
As the year progressed, the challenges remained. JP Morgan reported that 2025 saw nine life sciences companies exit via initial public offering (IPO), the least active life science IPO market in over a decade.
Despite these challenges, there is continued excitement and notes of an economic shift changing the course for the life sciences industry in 2026. As this year unfolds, the emerging companies market for life sciences companies shows early signs of recovery and a brighter future ahead.
AI and the patent landscape
One of the most noteworthy tools that companies across all industry sectors have started to embrace has been AI. In the life sciences industry, a 2025 report noted that 87% of life science researchers use AI for work-related research tasks, an increase from 75% in 2023. Over 90% of life sciences manufacturers reported that they were using or adopting smart technology. And a 2024 survey by KPMG noted that 64% of life sciences CEOs were prioritizing AI investments, indicating the role of this technology in future scientific research and development.
The United States Patent and Trademark Office (USPTO) itself is embracing AI tools to examine patents with the issuance of Executive Order 14179 in January 2025. The intention behind this executive order was for the USPTO to develop a framework to supply patent examiners with AI tools to help them drive innovation forward. Many are hopeful that this will help speed up patent application review time and increase examiner efficiency.
Most jurisdictions around the world require a human being to be a valid inventor. A key criterion of US patent law is that only natural persons can be deemed inventors on patents. AI cannot be an inventor, regardless of how much AI contributed to an invention. This aligns with other major patent offices around the globe, which also require a human inventor.
Originally published by Corporate Compliance Insights.
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