BD Leverages AI for Financial Growth and Operational Excellence in 2025

Becton, Dickinson and Company (BD) is actively leveraging AI technologies to enhance its financial services and operational efficiency in the latest quarter through a focused and measured approach across innovation and internal processes:

AI Integration in Innovation and Product Development

• BD has launched a new AI-based platform in Advanced Patient Monitoring (APM), which is performing well and expected to contribute to growth.
• An AI platform is planned for launch with the Pyxis Pro system later in the fiscal year within Medication Management Systems (MMS).
• AI is already utilized in Kiestra (microbiology automation) and diversion analytics, with several other AI programs in the pipeline.
• The company has established an AI incubator within its R&D organization, led by a dedicated leader and a nimble team focused on rapid prototyping and piloting AI applications to confirm business value before scaling investments.

AI in Operational Efficiency

• AI is applied to back-office processes such as expense reviews, where managers no longer manually review expenses because AI automates this task, freeing up managerial time.
• Manufacturing operations benefit from AI-driven optimization of scheduling on production lines, aiming to minimize changeover times and maximize Overall Equipment Effectiveness (OEE) and line throughput.
• Inventory management is another area where AI is used to improve efficiency and reduce costs.
• These AI applications are targeted at areas with clear, tangible value, ensuring prudent investment and measurable returns.

Cultural and Organizational Impact

• The adoption of AI and continuous improvement initiatives (BD Excellence) is enhancing the work experience by reducing mundane tasks and allowing employees to focus on higher-value activities such as creativity, strategy, and problem-solving.
• The company is expanding lean and continuous improvement processes, supported by AI, into R&D and commercial operations, which has already led to accelerated clinical trial timelines and improved operational outcomes.

Financial and Strategic Context

• These AI-driven efficiencies contribute to margin expansion and cash flow generation, supporting BD’s ability to invest in growth areas such as R&D and commercial programs.
• The company’s disciplined approach to AI investment aligns with its broader strategy of operational excellence and innovation-led growth, as evidenced by strong adjusted gross margins (54.9% in Q2) and operating margins (24.9% in Q2), partly fueled by BD Excellence initiatives.

In summary, BD is leveraging AI technologies both externally in product innovation and internally in operational processes to drive efficiency, margin expansion, and value creation, while maintaining a cautious and value-confirming investment approach.