Research firm selloff overestimates AI disruption risk
Contract research stocks fell on fears that AI could replace services. Experts say global networks and human oversight remain essential for clinical trials.
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Shares of major contract research organizations (CROs) have experienced a significant downturn as investors weigh the potential for artificial intelligence to disrupt the industry. Major players including IQVIA Holdings Inc., Medpace Holdings, Inc., and Charles River Laboratories International, Inc. have seen their valuations slide following the release of advanced AI agents that some believe could allow pharmaceutical companies to internalize clinical trial work.
"Could AI eat CROs? Yeah, I think that could be a possibility," said Thomas Laur, CEO of DNAnexus.
