Plunge of 83%! AI is Not Eliminating Medical Representatives, But Ineffective Visits

Deep News04-09

Will medical representatives be replaced by AI? This topic frequently trends in the industry. Such discussions often coincide with news of leading pharmaceutical companies downsizing their sales forces or a new AI tool going viral. Data indeed confirms this trend. The number of medical representatives in China has continuously declined from 3 million in 2015 to less than 800,000 in 2023, and is projected to shrink further to 500,000 by the end of 2025. In stark contrast, global AI investment by pharmaceutical companies is on a steady rise, ballooning from $200 million in 2015 to a projected $8.5 billion in 2025. This sharp contrast between decline and growth vividly illustrates the structural transformation driven by AI in China's pharmaceutical sales industry.

In reality, there are two common misconceptions. One alarmist view suggests AI will completely replace representatives; the other is complacent, insisting the industry relies on interpersonal relationships where AI is powerless. Data reveals a more complex truth. Salesforce's 2024 "State of Sales" report indicates that 84% of sales representatives failed to meet their annual targets. More notably, data shows that in the current model, for every 1 yuan invested in so-called "relationship maintenance," only 0.7 yuan in incremental sales is generated. This implies that a vast number of hospital visits are devolving into formalistic and ineffective social interactions.

However, it must be clear that the role of the medical representative will not disappear. Rather, much of the work currently performed by many representatives is rapidly becoming obsolete. It is not the positions that are being reduced, but the parts of those positions that rely on "low-level, repetitive labor." The industry is facing a stark selection process: it is not eliminating "people who work with clients," but those who "merely go through the motions without a scientific methodology." AI technology is primarily impacting precisely these low-value or even negative-value "actions."

AI can automate information sorting, generate standard reports, and suggest communication points, freeing representatives from tedious administrative and information retrieval tasks. However, AI cannot replace the core interactions that build deep trust and professional value. Examples include a 20-minute in-depth discussion with a top expert during a surgical break regarding a complex case, or using precise academic insights during a conference tea break to address a Key Opinion Leader's concerns about clinical trial enrollment criteria. These "critical moments," which depend on human empathy, on-the-spot judgment, and long-term relationship building, represent a chasm AI cannot cross.

Therefore, the future divide lies in whether one becomes a "professional consultant" empowered by AI tools, or remains merely an "information messenger" capable only of repetitive tasks that can be automated. Despite the clear trend, many pharmaceutical companies have invested heavily in AI enablement for their sales teams with minimal results. More importantly, if only the tools are upgraded without a corresponding upgrade in management thinking and behavior, even the most advanced systems will quickly become a new, more efficient form of "formalism." The core requirement AI places on sales management is a profound shift from "monitoring processes" to "teaching methodologies."

Looking ahead, the role of pharmaceutical sales will undergo a fundamental reshaping. In 2024, OpenAI's Sam Altman suggested that in the AI era, an individual could potentially found a billion-dollar company. A McKinsey 2025 report goes further: future typical teams might consist of only 2-5 core members, yet be capable of managing 50 to 100 AI agents simultaneously. This trend is knocking on the door of the pharmaceutical industry. This means the future "super medical representative" may not be a lone-wolf expert in making visits, but a "commander" skilled at orchestrating multiple AI assistants.

Facing this transformation, commercial leaders need not be anxious, but they must act. The mission of the medical representative—to communicate the value of innovative therapies to doctors and patients—remains unchanged. However, the methods for fulfilling this mission must evolve with the times. AI will not make medical representatives disappear, but it is accelerating the淘汰 of practitioners who are stuck in their ways, rely solely on experience, and lack scientific methods. For every sales leader, the truly urgent question is: Is your team actively learning to harness new tools and methods, or is it still using old maps to search for new continents? This transition is a long and arduous road, but progress comes with perseverance.

Recently, an industry research institute, in collaboration with experts, has developed a comprehensive guide for the commercial transformation of pharmaceutical companies in the AI era. Based on the core logic that "traditional models are failing, AI is amplifying inefficiencies, departments must be restructured, and compliance is the baseline," this guide covers key areas including marketing systems, marketing departments, medical affairs, sales, omnichannel strategies, and online physician engagement. It aims to provide practical assistance to pharmaceutical companies as they navigate the industry's structural shift from being expense-driven to value-driven, and ultimately to data-driven by 2026.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment