Navigating the Future of Incentive Compensation in Life Sciences
Explore the latest thinking from more than 20 commercial and incentive compensation (IC) leaders across pharma and biotech, as they address changes in field force motivation, artificial intelligence (AI) integration, and the application of behavioral science in IC design.
At a Glance: Key Insights
- AI’s Transformative Potential: 86% of IC experts agree AI will become increasingly integrated into IC programs over the next three years. Yet only 5% foresee full integration soon. Most expect incremental adoption, with near-term wins in automating operations and analytics.
- Barriers to Adoption: Data quality, regulatory complexity, and field trust are the biggest hurdles. Without transparency, field representatives are unlikely to trust or be motivated by AI-informed incentives.
- Evolving Field Models: Only 4% of organizations have fully integrated ecosystem field models. Most are anchored in traditional or hybrid roles, but more than 20% are actively evaluating a shift. Compliance and measurement challenges persist as roles evolve.
- Multi-Indication Product Complexity: 72% of participants aim to incentivize indication-specific performance, but accurate measurement remains elusive. Organizations are experimenting with alternative data sources, predictive algorithms, and targeted sales performance incentive funds (SPIFs) to bridge the gap.
- Behavioral Science: Underutilized, High Potential: 62% of leaders want to leverage all available behavioral science techniques, such as immediacy, recognition, and frequency, to boost motivation. Non-monetary recognition, frequent feedback, and transparent goal-setting are emerging as best practices.
What You’ll Find in the Report
- Actionable strategies for integrating AI and data-driven insights into IC.
- Real-world examples of field model innovation and compliance navigation.
- Behavioral science tactics to drive field engagement and performance.
- Exclusive stats and poll results from industry leaders.
Ready to Lead the Future of Incentive Compensation?
Download the full report now to unlock exclusive insights, practical frameworks, and proven strategies that will help you build high-performing teams and let your organization stay ahead of complex changes in life sciences commercial operations.
FAQs
AI is automating routine IC tasks such as reporting and data validation, enabling faster, more accurate operations. It’s also starting to support analytics and plan design, though adoption is gradual due to data and regulatory challenges.
Generative AI is driving value by streamlining commercial functions such as reporting, analytics, and decision support. Companies with a clear AI strategy see greater business impact, but industry adoption is still ramping up.
Axtria convenes industry leaders to share best practices and innovations, providing actionable strategies and frameworks to modernize IC programs and align incentives with business goals.
Key challenges include data quality, regulatory complexity, and building field trust, especially as roles evolve and new technologies like AI are introduced. Accurate measurement for multi-indication products and aligning incentives with changing field models are also top concerns.
Incentive compensation is moving toward greater integration of AI and advanced analytics, enabling more personalized and dynamic plans. Expect increased use of behavioral science to drive motivation, more flexible models for evolving field roles, and innovative approaches to measuring performance for multi-indication products. Transparency, data quality, and trust will remain central as organizations balance automation with human oversight.