< Previous52 MARCH 2025 SITE SELECTION and function are being used by Amgen to train ML algorithms to design drug candidates, which are then evaluated by automated, high-throughput platforms in a lab to provide more data to enhance the ML models. is innovation has allowed computer models to identify complex patterns in protein sequences, generate new protein designs and predict how a protein or antibody drug will behave in the body much earlier in the drug development process. To obtain more eff ective ML models, Amgen is looking into federated learning, a data-sharing model that helps protect companies’ proprietary information while pooling global protein research data. Global law fi rm Arnold & Porter conducted a survey of senior executives and department heads from biopharmaceutical, digital health, diagnostics and medical device companies for its “ e Convergence of Life Sciences and Artifi cial Intelligence: Seizing Opportunities While Managing Risk” report. e report notes that AI adoption is reaching new heights in areas such as product discovery and development, while detailing risks with regard to data privacy, cybersecurity and intellectual property. Arnold & Porter’s Global Life Sciences Industry Partner and Chair Dan Kracov shares insight with Site Selection about the report’s key fi ndings. Site Selection: Of the companies surveyed, was it at all surprising to see that the majority are just now beginning to make plans to integrate AI into their operations? Kracov : Not really, I think for two reasons. ere’s so many new AI tools that are being shopped or marketed to them that they really need time to fi gure out “How do we integrate these types of tools into our systems? How do we govern them within the company?” It’s kind of natural that they would start on early-stage discovery as one of the primary areas and early-stage development rather than commercialization. It’s the most regulated part of the process of drug development, so it’s faster to integrate it into the discovery and early preclinical stages. R&D is a top choice for companies looking to explore use of AI applications. With so much “gray area” prevalent, how would you weigh the ethical nature of its use in this regard? Kracov: ere are certainly going to be ethical issues. A lot of them pertain to issues such as privacy and infl uencing clinical decision-making, particularly in the use of digital tools in the marketing of drugs and so forth. Companies in this industry deal with life-or-death and ethical issues all the time. ey operate under good clinical practices in the highly regulated realm, particularly when it comes to clinical development. I think a lot of the controls are in place to engage with AI ethically, but there has to be governance to understand the AI. Patients will likely receive diagnoses through AI imaging and digital tools rather than traditional practices. This is not without risk. From a legal standpoint, what will be the biggest challenge for companies associated with this level of innovation? Kracov : One of the things that’s important for manufacturers is maintaining the learned intermediary between them and the patient. While they want to be able to interact with patients, ultimately it’s important that the health care practitioner [HCP] is in the middle. e line that the industry needs to walk is ensuring they’re not accused of unduly infl uencing the clinical decision because of the AI tools they may be using. Anytime you’re dealing with HPCs and trying to give them information or help them make clinical decisions you need to be extremely careful and make sure the physician understands the technology and not taking the learned intermediary out of the loop. Because from a liability perspective that could be very problematic for the industry. The report reveals a lack of consensus from surveyed companies on ensuring compliance with diverse regulatory and compliance requirements. Is it important for the industry to fi nd a one-size-fi ts- all strategy in developing and monitoring new AI policies? Kracov: It tends to evolve. Over time, companies adopt diff erent approaches and then as there AI agents, AI instruments and AI robots will help address the $3 trillion of operations dedicated to supporting industry growth and create an AI factory opportunity in the hundreds of billions of dollars.” — NVIDIA , announcing new life sciences and health care partnerships to accelerate drug discovery, enhance genomic research and pioneer advanced health care services, January 13, 2025 AI agents, AI instruments and SITE SELECTION MARCH 2025 53 is enforcement and a better understanding of technology, the types of polices and companies tend to converge kind of naturally. ere are lessons learned for the industry from what the government says, the enforcement activity or their experience with the technology. It will take time to develop a good governance framework and adapting the compliance program at companies to ensure that the special risks of AI are considered. On a global scale, what do you see as being the greatest advantage, and on the other hand greatest risk, to implementing AI within life sciences in comparison to other industries Arnold & Porter examines? Kracov: I think the greatest potential advantage is speeding up the development of life-saving therapies. AI holds a lot of promise to be able to discover, develop and bring new treatments to patients faster. Even though AI is expensive, a central focus for all of these companies is how they can bring costs down while getting through the development process much quicker. e risks are really around controlling the AI, so that you understand what it is doing and that it doesn’t aff ect the development of the product in a way that could create legal liability as well as ethical problems. When it comes to digital tools, companies and the FDA are focused on understanding the limits of AI use as it’s currently confi gured, and every time you make changes making sure you have analyzed and controlled it appropriately to incorporate new uses or approaches. AI holds a lot of promise to be able to discover, develop and bring new treatments to patients faster.” — Dan Kracov , Global Life Sciences Industry Partner and Chair, Arnold & Porter really around controlling the AI, so AI holds a lot of promise to isks are really around controlling the AI, so 54 MARCH 2025 SITE SELECTION D on’t take your local airport for granted. Whether it’s a major airline and air cargo hub, a smaller facility with limited service or something in between, it’s part of a global economic engine supporting millions of jobs. Aviation has a total global economic impact of $ . trillion — with a “t” — according to a December report by MARK AREND mark.arend@siteselection.com REPORT DETAILS AVIATION’S Contribution to Global Prosperity AIRPORTS & AIRPORT CITIES Courtesy of ATAG56 MARCH 2025 SITE SELECTION from Geneva, Switzerland–based Air Transport Action Group (ATAG), a non- profit association of manufacturers and suppliers, airline associations, airports, sustainable aviation fuel companies and chambers of commerce, among others. The report, “Aviation: Benefits Beyond Borders 2024,” marks the 80th anniversary of the Chicago Convention, which established the International Civil Aviation Organization and set rules pertaining to security, safety, air space and other factors pertinent to global aviation. “This report pays tribute to the spirit of the Chicago Convention, which has enabled connectivity across the world, supporting livelihoods and driving global growth,” says ATAG Executive Director Haldane Dodd. “Eighty years Africa’s share of global passenger traffic, 2023 Asia-Pacific’s share of global passenger traffic, 2023 Europe’s share of global passenger traffic, 2023 Total jobs and GDP generated by air transport in Africa, 2023. Total jobs and GDP generated by air transport in Asia-Pacific, 2023. Total jobs and GDP generated by air transport in Europe, 2023. JOBSGDP $75 bn8.1 m $42 bn $13 bn $8.3 bn $12 bn 360,000 1.2 m 1.5 m 5 m 2.9 % 34.7 % 25.9 % TOURISM CATALYTIC INDUCED INDIRECT AVIATION DIRECT JOBSGDP $890 bn42 m $250 bn $270 bn $180 bn $190 bn 4.3 m 9.7 m 7.9 m 20 mTOURISM CATALYTIC INDUCED INDIRECT AVIATION DIRECT JOBSGDP $1.2 trn15 m $370 bn $330 bn $230 bn $280 bn 2.9 m 4.2 m 2.9 m 5.3 m TOURISM CATALYTIC INDUCED INDIRECT AVIATION DIRECT REGIONAL AND GROUP ANALYSIS AFRICAASIA-PACIFICEUROPE Air transport supported 8.1 million jobs and contributed $75 billion to GDP in Africa in 2023. Air transport supported 42 million jobs and contributed $890 billion to GDP in the Asia- Pacific region in 2023. Air transport supported 15 million jobs and contributed $1.2 trillion to GDP in Europe in 2023. Infographics courtesy of ATAG58 MARCH 2025 SITE SELECTION later, aviation continues to link people and cultures while fostering international cooperation.” Key findings revealed in an ATAG summary of the report include: • Globally, aviation directly supports 11.6 million jobs and 20.4 million jobs indirectly. A further 17.2 million jobs are induced by the spending of aviation employees in the wider economy and 37.3 million jobs are supported by aviation through tourism. • If aviation were a country, it would rank 20th in size by GDP. • A total of 8.17 trillion revenue passenger kilometers 8.7 % 4.6 % 23.1 % Latin America and the Caribbean’s share of global passenger traffic, 2023 The Middle East’s share of global passenger traffic, 2023 North America’s share of global passenger traffic, 2023 Total jobs and GDP generated by air transport in Latin America and the Caribbean, 2023. Total jobs and GDP generated by air transport in the Middle East, 2023. Total jobs and GDP generated by air transport in North America, 2023. JOBSGDP $240 bn8.3 m $85 bn $52 bn $39 bn $60 bn 790,000 2.0 m 1.7 m 3.8 mTOURISM CATALYTIC INDUCED INDIRECT AVIATION DIRECT JOBSGDP $290 bn4.0 m $110 bn $76 bn $43 bn $64 bn 580,000 790,000 470,000 2.2 mTOURISM CATALYTIC INDUCED INDIRECT AVIATION DIRECT JOBSGDP $1.4 trn8.4 m $110 bn $410 bn $410 bn $460 bn 2.5 m 2.3 m 2.6 m 920,000 TOURISM CATALYTIC INDUCED INDIRECT AVIATION DIRECT LATIN AMERICA MIDDLE EASTNORTH AMERICA Air transport supported 8.3 million jobs and contributed $240 billion to GDP in Latin America and the Caribbean in 2023. Air transport supported 4 million jobs and contributed $290 billion to GDP in the Middle East in 2023. Air transport supported 8.4 million jobs and contributed $1.4 trillion to GDP in North America in 2023. REGIONAL AND GROUP ANALYSIS60 MARCH 2025 SITE SELECTION A irport Authority Hong Kong (AAHK) introduced ambitious plans on January 16 to build a multi-purpose development at Hong Kong International Airport (HKIA) called SKYTOPIA. The US$13 billion project would leverage the land and marine resources adjacent to the airport and feature Fancy? Flight ofnon-air-service amenities aimed at making SKYTOPIA a destination in its own right. Proposed components include an art hub and art storage facility, a marina with more than 500 berths, a water recreation area, a fresh market, an indoor performance venue with 20,000 seats, an indoor and outdoor sports complex and a smart transportation system. “We envisage that HKIA will not be just a place for passengers to board their flights or a portal for entering Hong Kong,” said AAHK Chairman Fred Lam at the event. “Our vision is to develop SKYTOPIA into a landmark of its own and a world-leading destination, attracting visitors from within Hong Kong and the prosperous Greater Bay Area, as well as major markets in Asia and the rest of the world. AAHK’s role is to build the key infrastructure and create a platform for experts and investors to deliver services and products through their specially designed facilities.” SITE SELECTION MARCH 2025 61Next >