A new survey has found that medical device companies are lagging behind other sectors in adopting artificial intelligence (AI) to improve product operations.

The State of Product Innovation 2025: AI Adoption and Collaboration Trends report, commissioned by Propel Software and conducted by Talker Research, surveyed 800 professionals across consumer goods, high tech, industrial equipment, and medical devices. It found that just 24% of medical device companies are using AI in product operations — around half the level reported in the high tech sector (51%).

Three quarters (76%) of medical device respondents said they do not use AI, with many citing the need to balance innovation with strict global regulatory requirements protecting patient data across the product lifecycle.

This lack of AI adoption is affecting product development and efficiency. One third (33%) of medical device respondents cited team coordination as their biggest innovation challenge, the highest figure across all industries surveyed. A further 25% said they lacked a formal process for gathering customer or market feedback to inform product decisions, while 23% reported difficulties obtaining accurate product data and specifications during product launches.

Among companies that are adopting AI, 44% reported improved productivity, while others pointed to competitive advantages (35%), reduced expenses (31%), and resource reallocation (25%).

“Our customers and prospects cannot ignore business inefficiencies in today’s dynamic markets, and AI is rewriting the rules for product companies,” said Ross Meyercord, CEO of Propel Software. “Propel One, our AI solution, addresses compliance concerns like those in the medical device industry 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 survey highlighted a contrast between medical devices and other industries, with higher AI uptake reported in high tech, consumer goods, and industrial equipment.