The convergence of myriad market forces in 2026 will have significant consequences for medtech businesses, forcing many to reimagine how work gets done. Under pressure to develop and commercialize products more quickly, OEMs are in a race to close the skills gap during an age of AI-fueled growth, adapt to greater regulatory shifts, and strengthen workforce agility to mitigate global market disruptions.

Unquestionably, talent will be key to overcoming the many challenges the industry faces. As the AI proliferation accelerates, companies are redefining work. Optimizing automation and workflow will improve productivity and fill resourcing gaps. Such an approach will become a core strategic pillar pivotal to accelerating device development, optimizing clinical trials, and enhancing operational efficiency across the sector. Harnessing the power of big data and training large language models have become priorities, and those who can master such mandates will undoubtedly gain a competitive business advantage.

This is happening even as more products are developed with AI in mind. Within the medical device sector, OEMs are ratcheting up the number of these items brought to market. As of July 2025, the FDA’s database lists over 1,250 AI-enabled medical devices authorized for marketing in the United States, up from 950 devices approved as of August 2024.¹ Radiology accounts for the lion’s share of the market, followed by cardiology. Within the pharmaceutical industry, AI is advancing product development, personalizing therapies, and enhancing patient access to drugs.

Surging Demand for Specialized Skills

As the life sciences sector continues to heavily incorporate AI into products, development, and all other aspects of its operations, the need for specialized talent will remain robust and unabated, especially for workers with expertise and experience in applying technology to lifesaving and life-enhancing products. This requires employers to proactively restructure their workforce, navigate intense competition for specialized talent, and invest in reskilling employees toward innovation, data science, and next-generation therapies.

Digital and analytics initiatives can lead to significant cost savings in life sciences operations.² Regulatory affairs are among the corporate functions leading in automation adoption, while sales and marketing lead in analytics. This indicates growing demand for AI/data specialists in compliance and medical affairs, but major hurdles exist in digital adoption, caused in part by a shortage of AI and domain-specific skills. Among roles experiencing the fastest growth are those in data science and engineering, patient engagement, customer data platforms (CDP), CRMs, and content management.

Beyond the influence of AI, companies are reassessing their talent strategy at a time when the medtech business is rapidly evolving—accelerated by cost cutting, digital transformation, realignment of employment hubs, and talent challenges that could hamper growth and development. 

Experienced Talent Remains Scarce

For instance, the Asia Pacific region is now the fastest-growing area for biotech and life sciences employment. This is backed by government support and private investments, as well as a booming labor pool. However, in markets such as India, where its bioeconomy is expected to have reached $150 billion in 2025,³ competition for talent is driving up wages as much as 15%. Moreover, the availability of highly experienced talent is limited, as Randstad Enterprise’s 2025 Global In-demand Skills research has found.⁴ In India, the job vacancy rate (JVR) for roles requiring senior talent is 12.6%, 230% higher than the rate for all roles needing the same skills. What this reveals is that employers are having a much harder time finding candidates with enough work experience to fill critical roles, whether these are in product development, regulatory affairs, or sales and marketing.

Further, it’s not just India facing a scarcity of experienced talent. A dozen markets we tracked are seeing double-digit JVRs for these roles. One factor exacerbating this challenge is aging demographics. With the oldest population in the world, Japan’s unemployment rate remains well under 3%.⁵ As more workers reach retirement age, this will place pressure on Japanese life sciences companies to reconsider their talent strategies. Similarly, markets such as Germany, France, Portugal, and others also face an aging demographic and will need to develop new pipelines for experienced talent. 

Beyond accessing the skills they need, life sciences companies must also look for efficiencies in labor costs. According to PwC, medical costs are rising rapidly,⁶ which in turn is putting price pressures on manufacturers to reduce their cost structures. A number of employers in the sector during the past several years have announced significant downsizing at the same time they are trying to accelerate product development. As a result, talent leaders are reassessing how work gets done in their organization and are increasingly leveraging redeployment, contingent resources, automation, and other alternatives to minimize cost while delivering on mandates.

Three Levers for Maximum Workforce Agility

So how can life sciences companies mitigate the challenges that lie ahead in 2026? Clearly, success will depend on the effectiveness of their workforce, which is key to accelerating innovation and development, but also efficiency. Optimizing all resources must be the priority for both talent and business leaders. The year ahead requires life sciences companies to navigate a disruptive period with foresight, agility, and coordination among all stakeholders.

1. Redefine Work

This requires segregating tasks into human-centric and machine-suited activities. The potential of AI is yet to be fulfilled, but there are clear domains where people skills are more effective, including empathy, creativity, and problem solving. Clinical studies, for instance, are ideally carried out by people who interface with patients. Data collection and analysis, on the other hand, can be exponentially expedited as AI and other technologies are incorporated in the process. Automation will enhance people’s abilities in many ways, provided it is deployed in a safe and verified way that is impactful and sustainable.

2. Embrace a Skills-Based Approach

Talent scarcity continues to hinder many life sciences companies, especially those in need of highly specialized knowledge, whether in pharma, diagnostics, bioinformatics, or other fields. Such skills can be exceptionally difficult to recruit for since hiring managers typically insist on credentialed pedigrees and extensive experience. This is why life sciences employers need to consider a comprehensive skills-based approach—one that prioritizes capabilities over degrees, integrates learning and development with hiring, and promotes internal mobility to mitigate scarcity. These steps can dramatically improve access to talent and skills.

3. Consider Alternative Arrangements

An ongoing trend among many life sciences companies is optimizing the work arrangements within their organization. More employers now regard non-permanent talent to be as important as employees when it comes to strategic resourcing. Whether it’s Statement of Work, temporary staff, gig workers, or contractors, these alternatives reduce labor costs, enable faster access to skills, and provide greater operational agility. In fact, some businesses are moving closer toward an integrated model in which all arrangements are considered for any type of work.

Conclusion

The year ahead will be a crossroad for device manufacturers. Impacted by geopolitical forces, market shifts, and the irrepressible influence of technology on all aspects of their operations, there has never been a more urgent time for employers to elevate workforce performance. By ensuring they have access to the skills and talent needed to accelerate product development and commercialization, medtech manufacturers can overcome the market challenges forecasted.

References
¹ tinyurl.com/mpo260171
² tinyurl.com/mpo260172
³ tinyurl.com/mpo260173
⁴ tinyurl.com/mpo260174
⁵ tinyurl.com/mpo260175
⁶ tinyurl.com/mpo260176

MORE FROM THIS AUTHOR: Effect of a Softening Labor Market on the Scarcity of In-Demand Medtech Skills

Ruby van den Hoff is the managing director of EMEA-based global accounts and life sciences for Randstad Enterprise. She works with Fortune 500 companies to develop and deliver solutions that improve and drive strategic access to talent. van den Hoff has more than 15 years of experience in recruitment and workforce consulting with major global clients and has worked for more than 10 years delivering contingent and permanent solutions for major life sciences companies. The emphasis has always been on improving the quality of her clients’ talent acquisition strategies.