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How AI is transforming research and development
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  • Insight
  • 12 minute read
  • November 26, 2025

Industries are under pressure to innovate faster and do it sustainably. Time to market is critical, products are more complex, and regulations are tightening. Skilled talent is in short supply. Innovation isn’t optional. It’s how you stay ahead.

AI is reshaping how organisations approach research and development (R&D). It’s not just about adopting new tech—it’s about unlocking smarter, faster innovation. With nearly 60% of organisations expecting AI to lift profit margins¹, the opportunity is clear. For manufacturers, it can unlock shorter development cycles, sharper capabilities, and a stronger position in a competitive market environment. 

Let’s take a look at how to get there.

Proven, ready-to-use use cases across the product lifecycle

AI opens up opportunities across every phase of the product lifecycle—from innovation and product development to realisation, order process and phase-out. These solutions are mature, proven, and ready to solve the challenges each phase presents.

By using advanced algorithms and AI technology, you can streamline unnecessary complexity, improve product costs reduce manufacturing costs for individual products, and facilitate optimised operations. Ultimately that can significantly reduce product cost.

Generative AI can instantly extract and consolidate requirements using semantics and Optical Character Recognition (OCR). This approach helps cut down the time it takes to define requirements, reduces documentation effort and rework, and keeps development moving—so you can stay aligned with what your customers actually need.

AI-powered compliance assistants can track global regulatory changes, assess your portfolio, and connect compliance departments with R&D to implement updates. That means you can respond faster, reduce risk, and keep innovation moving.

AI solutions can simplify data extraction, document integration, and validation across product lifecycle management (PLM) transformations and adjacent domains like computer-aided design (CAD) and bill of materials (BOMs). You get tasks done quicker, reduce costs, and protect data more efficiently.

Integrating AI into R&D is a strategic shift, not merely a technology upgrade. It strengthens innovation capabilities and shortens development cycles — so manufacturers can compete effectively.

Prof. Dr. Florian Kauf 

What’s holding organisations back—and how to move forward

PwC and Microsoft’s study, AI in operations: Revolutionising the manufacturing industry, highlighted that issues around data quality, security, and availability are top of mind for R&D professionals.

 

PwC’s business-led framework helps organisations overcome these barriers. Successful AI adoption starts with strategy not tech. Our approach aligns AI with your goals across five dimensions: strategy, products, processes, IT-technology and organisation.

Here’s how we can help

  • Define a clear vision for AI that supports your strategic objectives 
  • Identify high-impact use cases and assess readiness 
  • Prioritise scalable solutions that integrate with your existing IT 
  • Develop pilots and MVPs with secure, seamless toolchains 
  • Build workforce capabilities through training, governance and change management—embedding a culture of continuous R&D and innovation. 

Ready to unlock smarter, faster innovation? Explore how AI can transform your R&D, starting with the use cases that deliver real impact. 

Download Innovate smarter

How AI is transforming research and development

1. PwC, Microsoft: AI in operations: Revolutionising the manufacturing industry https://www.pwc.com/gx/en/services/consulting/digital-operations/ai-in-operations.html

Contact us

Prof. Dr. Florian Kauf
Prof. Dr. Florian Kauf

Partner, PwC Germany

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Andreas Odenkirchen
Andreas Odenkirchen

Director, Data & AI, PwC Germany

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Hannes Ramoser
Hannes Ramoser

Senior Manager, AI in R&D Lead, PwC Germany

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AI in operations: Revolutionising the manufacturing industry

Over 400 operations executives from 30+ countries across Europe, the Middle East, and Africa were recently surveyed to provide insights for this study.

Ready to start your AI transformation journey?

Download our PwC and Microsoft playbook to learn how you can deploy AI at scale and the critical role of cloud and cybersecurity.

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