AI technology Revolutionizing Pharma Sector by Cutting R&D Costs

AI technology is set to greatly reduce research and development expenses in pharmaceuticals by streamlining drug discovery, enhancing clinical trials, and utilizing predictive data analytics, as per GlobalData survey. The leading data and analytics company’s report, “The State of the Biopharmaceutical Industry – 2025,” highlights AI’s potential to boost productivity and cut costs in the coming year.

Urte Jakimaviciute, Senior Director of Market Research and Strategic Intelligence within the healthcare sector at GlobalData, highlighted the significance of enhancing R&D productivity.

“Enhancing productivity in pharmaceutical R&D is fundamental as it accelerates the development of new drugs, enabling companies to innovate more effectively, respond to emerging medical needs, and maintain a competitive edge,” she stated.

The report reveals that industry experts have recognized lead generation and optimization in drug discovery as the fields where AI has been most successfully incorporated to date. Target identification is another vital research and development process that gains advantages from AI.

Jakimaviciute added, “Improving productivity aligns with the broader trend of AI adoption across industries, which is also pushing pharmaceutical companies to integrate advanced technologies to remain competitive and keep up with digitalisation trends.”

Although AI's involvement in drug discovery is still developing, a growing number of AI-discovered medications are anticipated to reach markets in the future.

“This will be driven by the ongoing need to enhance efficiency and speed in the process, cost-effectiveness factors, and continuous advancements in AI itself,” Jakimaviciute concluded.