Towards Healthcare
AI in Pharmaceuticals Market to Grow at 27.01% till 2035

AI in Pharmaceuticals Market Unlocking Precision Drug Design with Future Therapies

Projections indicate that, AI in pharmaceuticals industry is projected to rise from USD 1.97 billion in 2025 to USD 21.51 billion by 2035, reflecting a CAGR of 27.01% over the next decade. The AI in the pharmaceutical market is growing as demand for pharmaceuticals rises amid chronic conditions & rare diseases. North America’s dominance can be attributed to the rise in clinical trials.

Category: Pharmaceuticals Insight Code: 6440 Format: PDF / PPT / Excel

AI in Pharmaceuticals Market Size, Shares and Segment Insights with Key Players

The global AI in pharmaceuticals market size is calculated at US$ 1.97 billion in 2025, grew to US$ 2.5 billion in 2026, and is projected to reach around US$ 21.51 billion by 2035. The market is expanding at a CAGR of 27.01% between 2026 and 2035.

AI in Pharmaceuticals Market Trends and Growth (2026)

Because AI seamlessly integrates data, computational power, and algorithms, it is transforming conventional drug discovery and development models. This synergy speeds up development timelines, lowers costs, and improves drug research's efficiency, accuracy, and success rates. AI has shown notable advancements in a number of fields, including small-molecule drug design, target discovery and validation, drug characterization, and clinical trial acceleration, when combined with machine learning (ML) and deep learning (DL).

Key Takeaways

  • AI in pharmaceuticals market to crossed USD 1.97 billion by 2025.
  • Market projected at USD 21.51 billion by 2035.
  • CAGR of 27.01% expected in between 2026 to 2035.
  • North America dominated the AI in pharmaceuticals market in 2024, with a revenue of approximately 46%.
  • Asia Pacific is expected to grow at the fastest CAGR during the forecast period.
  • By application, the drug discovery segment dominated the market in 2024, with a revenue of approximately 41%.
  • By application, the clinical trial design & optimization segment is expected to grow at the fastest CAGR during the forecast period.
  • By technology, the machine learning (ML) segment dominated the market in 2024, with a revenue of approximately 44%.
  • By technology, the reinforcement learning (RL) segment is expected to grow at the fastest CAGR during the forecast period.
  • By drug type, the small molecules segment dominated the market in 2024, with a revenue of approximately 56%.
  • By drug type, the biologics segment is expected to grow at the fastest CAGR during the forecast period.
  • By deployment mode, the cloud-based segment dominated the market in 2024, with a revenue of approximately 72%.and is expected to grow at the fastest CAGR during the forecast period.
  • By end-user, the pharmaceutical & biotechnology companies segment dominated the AI in pharmaceuticals market in 2024, with a revenue of approximately 49%.
  • By end-user, the contract research organizations (CROs) segment is expected to grow at the fastest CAGR during the forecast period.

Executive Summary Table

Key Elements Scope
Market Size in 2025 USD 1.97 Billion
Projected Market Size in 2035 USD 21.51 Billion
CAGR (2026 - 2035) 27.01%
Leading Region North America by 46%
Market Segmentation By Application, By Technology, By Drug Type, By Deployment Mode, By End User, By Region
Top Key Players Exscientia, Insilico Medicine, BenevolentAI, Atomwise, BioAge Labs, XtalPi, Recursion Pharmaceuticals, Valo Health, Deep Genomics, Absci Corporation, IBM Watson Health, NVIDIA Corporation, Microsoft Azure AI, Google DeepMind, Schrödinger, Inc., Cloud Pharmaceuticals, Cyclica (Recursion), Ardigen S.A., Owkin Inc., Turbine.ai

What is the Role of AI in Pharmaceuticals?

The AI in pharmaceuticals market refers to the application of artificial intelligence (AI), machine learning (ML), and deep learning (DL) across various stages of the pharmaceutical value chain, from drug discovery and clinical trials to manufacturing, supply chain management, and commercialization. AI helps accelerate target identification, reduce R&D costs, improve clinical trial design, optimize drug formulation, and enhance patient outcomes. The growing availability of biomedical data, regulatory support for AI-enabled innovation, and partnerships between pharma and AI startups are key factors driving market growth.

AI in Pharmaceuticals Market Outlook

  • Global Expansion: Due to significant investment and R&D efforts, North America currently holds a dominant market share in the rapidly growing global market. The demand for customized treatments and rising healthcare spending, however, are driving the fastest-growing market in Asia-Pacific. With government initiatives and strong regulatory frameworks for AI in healthcare, Europe is also experiencing strong growth.
  • Major Investors: Venture capital firms and large pharmaceutical companies are examples of key investors. AI companies are being actively funded and partnered with by corporate investors such as Pfizer, AstraZeneca, and Novartis. AI startups like Insilico Medicine and Recursion Pharmaceuticals are receiving significant funding for innovation from well-known venture capital firms like Andreessen Horowitz and Sequoia Capital.
  • Startup Ecosystem: In an effort to transform drug development and drastically cut costs and time, traditional pharmaceutical companies are increasingly looking to artificial intelligence startups. All 10 of the world's top pharmaceutical companies have collaborated with AI-driven drug discovery startups since 2023.

Segmental Insights

Application Insights

Why Drug Discovery Dominated the Market in 2024?

The drug discovery segment dominated the AI in pharmaceuticals market in 2024, accounting for approximately 41% of revenue. Drug development is a laborious and intricate process that has historically depended on trial-and-error experimentation and the experience of drug developers. This paradigm is about to change with the introduction of AI technologies, especially generative AI and large language models.

As of November 6, 2025, 425,499 (76%) of the 557,103 studies listed on ClinicalTrials.gov were interventional trials. About 209,475 of these deal with medications or biologics for the creation of new drugs. 43,674 studies were added in 2024, and 36,226 in 2025.

Clinical Trial & Optimization

The clinical trial design & optimization segment is expected to grow at the fastest rate in the AI in pharmaceuticals market CAGR during the forecast period. Clinical trials are changing in almost every way due to AI. AI has a significant and wide-ranging impact on everything from improving patient monitoring and data analysis to creating smarter trials. Because AI can simulate different scenarios and forecast possible outcomes, it is essential for optimizing trial protocols. Furthermore, a number of AI-based tools use predictive analytics to design safer and more intelligent clinical trials

Precision Medicine

The precision medicine segment is growing significantly in the AI in pharmaceuticals market during 2025-2034. AI is revolutionizing the integration and analysis of genetic, immunological, and medical records data, making it a disruptive force in precision medicine. Integrating AI with various data sets gives doctors a comprehensive picture of their patients. In the medical field, machine learning and deep learning models improve disease prediction, risk assessment, and treatment optimization.

Technology Insights

Why Machine Learning (ML) Became Dominant in the Market in 2024?

The machine learning (ML) segment dominated the AI in pharmaceuticals market in 2024, accounting for approximately 44% of revenue. The pharmaceutical industry is changing as a result of machine learning, which is enabling previously unattainable breakthroughs. It now supports choices in drug development and delivery, from forecasting novel compounds' interactions with the body to expediting clinical trials and customizing patient care.

Reinforcement Learning (RL)

The reinforcement learning (RL) segment is expected to grow at the fastest CAGR during the forecast period. RL is a machine learning paradigm that optimizes sequential treatment strategies and addresses uncertainties to improve clinical decision-making for medical professionals. In order to improve results and resource efficiency, RL uses patient data to develop individualized treatment plans.

Deep Learning (DL)

The deep learning (DL) segment is growing significantly in the AI in pharmaceuticals market during 2025-2034. By locating drug targets, forecasting protein binding, and facilitating personalized medicine via genomic data analysis, DL speeds up drug discovery. It improves patient stratification and biomarker discovery in clinical trials and aids in the development of safer medications by looking for adverse events in real-world data.

Drug Type Insights

What made Small Molecules Dominant in the Market in 2024?

The small molecules segment dominated the AI in pharmaceuticals market in 2024, accounting for approximately 56% of revenue because globally, 81 FIC medications received approval in 2023 and 2024. Small-molecule drugs account for a larger share (51.9%), demonstrating the discovery of novel chemical entities. 42 FIC small-molecule drugs and 173 novel small-molecule drugs were approved in 2023 and 2024. Synthetic small-molecule medications, which are created and synthesized artificially, make up the majority of novel small-molecule medications and FIC medications (76.4%). Endogenous materials (8.6%) and natural products (6.3%) are also important sources for FIC drug research and development.

Biologics

The biologics segment is expected to grow at the fastest CAGR in the AI in pharmaceuticals market during the forecast period, as the post-COVID era has seen an unprecedented surge in demand for biologics, including vaccines. To meet this increasing demand, nations such as the U.S., Sweden, China, India, Japan, and the United Kingdom have begun building sophisticated biomanufacturing facilities. By building these facilities or acquiring existing locations through mergers and acquisitions, large pharmaceutical companies are entering the biologics market.

Vaccines

The vaccines segment is growing significantly in the AI in pharmaceuticals market during 2025-2034 because immunization is essential for primary healthcare, an unassailable human right, and for preventing and controlling infectious disease outbreaks. Currently, vaccinations prevent between 3.5 and 5 million deaths annually from diseases like measles, influenza, tetanus, pertussis (whooping cough), and diphtheria.

Deployment Mode Insights

How the Cloud-Based Segment Became Dominant & Fastest in the Market?

The cloud-based segment dominated the AI in pharmaceuticals market in 2024, accounting for approximately 72% of revenue, and is expected to grow at the fastest CAGR during the forecast period. Pharmaceutical firms can revolutionize patient care by using cloud-based AI to optimize processes, boost productivity, and customize therapies. To handle massive volumes of medical data, cloud platforms offer the scalability, security, and real-time data access needed. With the help of these cloud-based infrastructures, AI can improve decision-making in areas such as supply chain management, clinical trials, drug discovery, and patient engagement. It can also automate complicated tasks and extract actionable insights.

On-Premises

The on-premises segment is growing significantly in the AI in pharmaceuticals market during 2025-2034. An effective substitute is on-premise LLM deployment, which puts AI capabilities inside the firewall to protect private information, intellectual property, and legal obligations.

End-User Insights

Which End-User Dominated the Market in 2024?

The pharmaceutical & biotechnology companies segment dominated the AI in pharmaceuticals market in 2024, accounting for approximately 49% of revenue. Pharmaceutical & biotechnology companies have now integrated AI in every step from the supply chain to drug supply. AI has become part of drug discovery, data analysis, process optimization, decision-making, patient support, and more.

Contract Research Organizations (CROs)

The contract research organizations (CROs) segment is expected to grow at the fastest CAGR during the forecast period. Pharma and biotech companies face very high product demand driven by the rise in chronic conditions and an aging population. As a result, these companies reach out to CROs to manage various functions. CROS utilizes AI to smoothly handle tasks, ultimately leading to enhanced efficiency, accuracy, time & cost management.

Academic & Research Institutes

The academic & research institutes segment is growing significantly in the AI in pharmaceuticals market during 2025-2034. Academic & research institutes are involved in drug discovery, precision medicine, and other pharma-related tasks. Therefore, these institutions use AI across various processes to enhance overall operations.

Regional Insights

AI in Pharmaceuticals Market Share, By Region, 2025 (%)

North America: The Biggest Host of the Pharmaceutical Industry

North America dominated the AI in pharmaceuticals market with a share of approximately 46% in 2024 because of things like the high cost of healthcare in the area per person, the increased investment in medical technology, including artificial intelligence, the growing need for patient-centered methods, the emphasis on cutting down on the time and expense of drug development, and research on rare diseases. Growth is further fueled by the increasing emphasis on quality control and regulatory compliance, the development of healthcare and drug-discovery infrastructure, and the rising demand for digital technologies in North America.

Government Support: A Key Driver in the U.S. Market Growth

One of the main forces behind the AI in pharmaceuticals market’s growth has been government action. The following are some significant programs in the U.S. and other countries that specifically encourage the development of pharmaceutical plants.

FDA PreCheck (2025): It was introduced on August 7, 2025, with the goal of removing years of bureaucratic red tape in the building of plants. The FDA Commissioner described it as a component of lessening reliance on foreign drug suppliers.

May 2025 Executive Order: An order signed by President Trump instructs the FDA to expedite the approval process for U.S. pharmaceutical plants.

India & China: Major Drug Developers in the Asia Pacific

Asia Pacific is estimated to host the fastest-growing AI in pharmaceuticals market during the forecast period. The market is expanding rapidly in the region, driven by countries such as China and India. Asia Pacific businesses are developing AI technologies to accelerate drug development and discovery, improving the effectiveness of clinical trials and addressing unmet medical needs.

DeepSeek Moment in China’s Innovative Drug Industry

China's innovative drug industry has reached its "DeepSeek Moment" as the global pharmaceutical landscape undergoes significant restructuring. Due to innovation and globalization, Chinese biopharmaceutical companies, once largely viewed as copycats, are now becoming important players on the international scene. With 94 deals totaling US$51.9 billion in 2024, a 26% year-over-year increase, China's innovative drug license-out transactions reached record highs in both volume and value.

Rising Investment in Pharmaceuticals is Driving Europe

Europe is expected to grow at a significant CAGR in the AI in pharmaceuticals market during the forecast period, driven by strong government backing, the growing use of AI in drug development, and collaboration between tech and pharmaceutical companies. As nations like Germany, the United Kingdom, and France take the lead in AI research and development, significant investments are being made.

UK Researchers: Key Players in Market’s Growth

The UK's thriving global biopharmaceutical sector is bolstered by a top-tier talent pool and a long-term vision, as well as a partnership with the government. Researchers from the UK have been instrumental in international scientific initiatives and discoveries. In addition, the UK has spearheaded numerous innovative, first-of-its-kind research initiatives, including the establishment of the 100,000 Genomes Project, the National Institute for Health Research, and the UK Biobank.

South America’s AI-Powered Pharma Revolution

South America is expected to grow significantly in the AI in pharmaceuticals market during the forecast period. South America is witnessing rapid AI integration in drug research, diagnostics, and clinical trial analytics. Over 60 regional initiatives are focusing on predictive modeling, patient stratification, and data harmonization, transforming healthcare efficiency and drug development capabilities across key Latin markets.

Brazil’s Digital Pill for Healthcare Growth

Brazil’s pharmaceutical AI growth is accelerating through 80-plus tech partnerships optimizing genomic analysis, hospital workflows, and patient outcomes. Government-backed innovation programs and smart data infrastructure are nurturing domestic AI startups advancing drug design and digital therapeutics nationwide.

MEA’s Smart Transformation in Pharma R&D

The Middle East and Africa are expected to grow at a lucrative CAGR in the AI in pharmaceuticals market during the forecast period. Across the Middle East and Africa, AI is reshaping pharma with over 100 health-tech deployments in supply chain, pharmacovigilance, and clinical intelligence. Regional innovation hubs are improving accessibility, data governance, and AI-driven decision-making in medicine development and healthcare delivery.

UAE’s Visionary Leap in Pharma Intelligence

The UAE leads with national AI strategies driving pharma automation, precision medicine, and drug discovery. Through collaborations with Nvidia, G42, and global biotech firms, over 45 AI pilot projects now enhance regulatory speed, manufacturing, and patient-centered innovation.

Company Landscape

Novartis

Company Overview: Global pharmaceutical company focused on innovative medicines, generic and biosimilar pharmaceuticals (Sandoz spin-off completed in 2023), and eye care. AI plays a central role in its "unbossed" strategy, aiming to transform drug discovery, clinical development, manufacturing, and commercialization.

Corporate Information

  • Headquarters: Basel, Switzerland
  • Year Founded: 1996 (formed through the merger of Ciba-Geigy and Sandoz)
  • Ownership Type: Public (SIX: NOVN, NYSE: NVS)

History and Background

History and Background: Novartis traces its roots back to the 18th century. The 1996 merger created a global life science leader. It has been an early and aggressive adopter of digital technologies, particularly AI and Machine Learning, to revitalize its R&D productivity and operational efficiency.

Key Milestones/Timeline:

  • 1996: Formation of Novartis.
  • 2017: Announced a strategic partnership with Amazon Web Services (AWS) for AI in drug discovery.
  • 2019: Established a five-year strategic alliance with Microsoft to transform R&D with AI and data science.
  • 2023: Completed the spin-off of its Generics and Biosimilars division, Sandoz, to focus purely on innovative medicines and advanced therapies, heavily leveraging AI.
  • 2024/2025: Continued use of AI for clinical trial optimization and biomarker discovery.

Business Overview

  • Business Segments/Divisions:
    • Innovative Medicines: Comprises Pharmaceuticals (incl. Oncology) and Cell & Gene Therapies. AI is integrated across all functions.
    • Sandoz: Spun off in 2023, now a separate entity.
    • Geographic Presence: Global operations with a strong presence in North America (largest market), Europe, and Asia.
    • Key Offerings: Innovative drugs and advanced therapies in areas like Oncology, Cardiovascular, Immunology, and Neuroscience. AI-driven platforms support all drug offerings.
    • End-Use Industries Served: Healthcare Providers, Patients, Pharmaceutical Manufacturing, and Research Institutions.

Key Developments and Strategic Initiatives

Mergers & Acquisitions: Focus is generally on smaller, targeted AI/tech partnerships rather than large AI company acquisitions, preferring to build in-house capabilities and strategic alliances.

Partnerships & Collaborations:

  • Microsoft: Multi-year collaboration to apply AI across R&D.
  • Amazon Web Services (AWS): Partnership for cloud-based AI solutions in drug discovery.
  • Molecular Partners: Partnership leveraging AI for multi-target drug design.
  • Product Launches/Innovations: AI-assisted launch of new therapeutic candidates in clinical trials across multiple therapeutic areas.
  • Capacity Expansions/Investments: Significant investment in its internal NIBR (Novartis Institutes for BioMedical Research) and IT infrastructure to support AI/ML initiatives.
  • Regulatory Approvals: AI-informed clinical trial design for drugs across its portfolio, leading to faster regulatory submissions.
  • Distribution channel strategy: Utilizing digital and AI tools to optimize supply chain and logistics, and leveraging digital engagement for commercial activities.

Technological Capabilities/R&D Focus

  • Core Technologies/Patents: Proprietary AI platforms for predictive modeling, target identification, clinical trial site selection, and biomarker discovery. Holds numerous AI and data-related patents.
  • Research & Development Infrastructure: Global network of NIBR sites fully integrated with a centralized data and AI platform.
  • Innovation Focus Areas: Generative AI for drug design, optimization of clinical trial protocol/recruitment, predictive maintenance in manufacturing, and precision medicine.

Competitive Positioning

  • Strengths & Differentiators:
    • Early Mover in AI Integration: One of the first major pharma companies to commit to a widespread, strategic AI transformation.
    • Massive Data Scale: Access to vast proprietary clinical and R&D data for training algorithms.
    • Strong Partnerships: Deep alliances with tech giants like Microsoft and AWS.
    • Market presence & ecosystem role: A dominant global pharma player (top 10 by market cap) driving AI adoption and setting benchmarks for R&D efficiency in the industry.
  • SWOT Analysis:
    • Strengths: Deep therapeutic expertise, global scale, strong AI partnerships, large data sets.
    • Weaknesses: Integration complexity of legacy IT systems, high cost of AI talent/infrastructure.
    • Opportunities: Accelerate pipeline development, drive precision medicine, improve operational efficiency.
    • Threats: Competition from pure-play AI biotech, data privacy regulations, speed of technological change.

Recent News and Updates

  • Press Releases:
    • Q4 2024: Announced continued success in using AI to halve the time needed for clinical trial feasibility assessments.
    • 2025: Reports highlighting the advanced use of AI to accelerate the discovery of new drug candidates in oncology.
    • Industry Recognitions/Awards: Consistently recognized as a leader in digital transformation and AI integration within the life sciences sector by multiple industry reports.

Roche (F. Hoffmann-La Roche Ltd.)

Company Overview: Global pioneer in pharmaceuticals and diagnostics. Roche is highly committed to personalized healthcare, using data and AI to integrate therapeutic and diagnostic offerings. Its AI strategy is critical for pathology, diagnostics, and targeted oncology drug discovery.

Corporate Information

  • Headquarters: Basel, Switzerland
  • Year Founded: 1896
  • Ownership Type: Public (SIX: ROG, OTCQX: RHHBY)

History and Background

History and Background: Over 125 years of history, with major contributions in vitamins and pharmaceuticals. The acquisition of Genentech in 2009 solidified its leadership in biotechnology. The unique integration of the Pharmaceuticals and Diagnostics divisions positions it to leverage vast amounts of real-world patient and diagnostic data, which is key for its AI strategy in personalized healthcare.

Key Milestones/Timeline:

  • 2018: Partnership with GE Healthcare to develop AI-powered digital pathology solutions.
  • 2020: Strategic partnership with Novartis to accelerate the discovery and development of oncology therapeutics using AI. (This is a simplified mention; the actual collaboration focuses on specific targets/technologies.)
  • 2024: Expanded partnership with PathAI for AI-powered companion diagnostics.
  • 2025: Continuous integration of AI into the VENTANA portfolio for digital pathology and diagnostics.

Business Overview

  • Business Segments/Divisions:
    • Pharmaceuticals: Focuses on Oncology, Immunology, Infectious Diseases, Ophthalmology, and Neuroscience. (Genentech is a fully-owned subsidiary).
    • Diagnostics: Offers a comprehensive portfolio of diagnostic tests and systems, including digital pathology, leveraging AI heavily.
    • Geographic Presence: Operates globally, with a strong presence in North America (via Genentech) and Europe.
    • Key Offerings: Innovative oncology medicines, advanced diagnostic systems, personalized healthcare solutions. AI-driven tools underpin its digital pathology and diagnostic offerings.
    • End-Use Industries Served: Hospitals, Laboratories (Clinical and Research), Healthcare Providers, and Patients.

Key Developments and Strategic Initiatives

  • Mergers & Acquisitions:
    • Acquisition of Foundation Medicine: Gained access to genomic profiling data, crucial for AI-driven precision oncology.
    • Acquisition of Flatiron Health: Gained access to high-quality electronic health record (EHR) data, vital for AI/RWD initiatives.
  • Partnerships & Collaborations:
    • PathAI: Expanded exclusive partnership (early 2024) to develop AI-powered digital pathology algorithms for companion diagnostics.
    • Bristol Myers Squibb, GE Healthcare: Partnerships for AI applications in clinical development and digital solutions.
  • Product Launches/Innovations:
    • Launched AI-enabled applications within its Navify Digital Pathology platform.
    • Continued development of AI-powered diagnostic assays.
    • Capacity Expansions/Investments: Major investments in its DiCo (Digital Collaborative) data platform and cloud infrastructure to integrate Pharma and Diagnostics data.
    • Regulatory Approvals: Received FDA approvals/clearances for multiple AI-powered diagnostic and pathology devices and algorithms (e.g., in its VENTANA product line, including the VENTANA TROP2 (EPR20043) RxDx Assay, which received FDA Breakthrough Device Designation in 2024).
    • Distribution channel strategy: Leverages its Diagnostics division's global network to deploy AI-enabled lab and pathology solutions directly into hospitals and clinical labs.
  • Technological Capabilities/R&D Focus
    • Core Technologies/Patents: Leader in digital pathology and deep learning algorithms for image analysis. Focuses on AI for Real-World Data (RWD) analysis, biomarker discovery, and clinical decision support. Holds numerous patents in AI for diagnostics.
    • Research & Development Infrastructure: Integration of Genentech's advanced R&D with the Diagnostics division's data capabilities; centralized data platforms (DiCo).
    • Innovation Focus Areas: Personalized Healthcare (PHC) driven by AI, digital pathology, predictive models for disease progression, and early-stage drug target validation using multi-omics data.

Competitive Positioning

  • Strengths & Differentiators:
    • Integrated Model: Unique combination of Pharmaceuticals and Diagnostics, providing end-to-end patient data (from diagnosis to treatment).
    • Data Assets: Massive repository of proprietary clinical, diagnostic, and RWD from Flatiron and Foundation Medicine.
    • Oncology Leadership: Deep expertise and market leadership in oncology, a primary focus area for AI in pharma.
    • Market presence & ecosystem role: A top-tier global pharmaceutical and diagnostics company (top 5 by market cap) actively leveraging its unique data ecosystem to lead in personalized healthcare.

SWOT Analysis:

    • Strengths: PHC leadership, integrated Pharma/Diagnostics data, strong position in oncology/diagnostics, strategic acquisitions (Flatiron, Foundation Medicine).
    • Weaknesses: Regulatory hurdles for integrated AI-driven drug/diagnostic products, complexity of merging the two large divisions' data.
    • Opportunities: Dominate the AI-powered companion diagnostics market, accelerate drug repurposing, create fully personalized treatment pathways.
  • Threats: Competition from tech giants entering diagnostics, cybersecurity risks, and high integration costs.

Recent News and Updates

  • Press Releases:
    • Early 2024: Announced the expansion of the PathAI partnership for exclusive AI-powered companion diagnostics development.
    • 2024: Completed the acquisition of Carmot Therapeutics to expand its portfolio in obesity and diabetes, a deal that will leverage AI for clinical development.
    • 2025: Entered a major agreement with Zealand Pharma for co-development of obesity treatments, integrating AI for portfolio and trial management.
    • Industry Recognitions/Awards: Frequently recognized for excellence in diagnostics innovation and leadership in personalized healthcare, driven by data science and AI.

Top Vendors in the AI in Pharmaceuticals Market & Their Offerings

Company Key Contributions Core Offerings Focus Areas Strategic Highlights
Exscientia Pioneers AI-driven drug design, integrating deep learning with precision chemistry for faster candidate discovery. Centaur Chemist platform, predictive modeling, discovery partnerships. Oncology, immunology, metabolic disorders. Combined with Recursion in 2024 to enhance end-to-end AI drug development.
Insilico Medicine Uses generative AI and biology models to discover and develop novel therapeutics. Pharma.AI suite, Chemistry42, target discovery tools. Fibrosis, oncology, and rare diseases. Launched AI-designed drug INS018_055, entering clinical trials in 2025.
BenevolentAI Integrates knowledge graphs and ML for target identification and validation. Benevolent Platform, data integration tools. Inflammatory diseases, neurology. Expanded AstraZeneca partnership in 2025 for novel target discovery.
Atomwise Applies structure-based deep learning for small-molecule drug discovery acceleration. AtomNet technology, screening as a service. Oncology, infectious diseases, CNS. Partnered with Bayer and Eli Lilly for AI-driven molecule discovery.
BioAge Labs Uses AI and omics data to identify longevity-related drug targets. Age-related biomarker analysis platform. Aging, metabolic, and cardiovascular diseases. Advanced multiple AI-identified candidates into early clinical stages..

Top Companies in the AI in Pharmaceuticals Market

  • Exscientia
  • Insilico Medicine
  • BenevolentAI
  • Atomwise
  • BioAge Labs
  • XtalPi
  • Recursion Pharmaceuticals
  • Valo Health
  • Deep Genomics
  • Absci Corporation
  • IBM Watson Health
  • NVIDIA Corporation
  • Microsoft Azure AI
  • Google DeepMind
  • Schrödinger, Inc.
  • Cloud Pharmaceuticals
  • Cyclica (Recursion)
  • Ardigen S.A.
  • Owkin Inc.
  • Turbine.ai

Read further to see how top players are reshaping the AI in Pharmaceuticals Market: https://www.towardshealthcare.com/companies/ai-in-pharmaceuticals-companies

Recent Developments in the AI in Pharmaceuticals Market

  • In October 2025, in order to expand its AI-driven preclinical drug development platform, which helps researchers predict drug success and expedite the lab-to-clinic journey, Dublin-based biotech Meta-Flux has raised €1.8M ($2M) in seed funding.
  • In September 2025, the pharmaceutical company Eli Lilly announced the launch of a machine learning and artificial intelligence platform that will give biotech firms access to drug discovery models trained on years' worth of its research data.

Segments Covered in the Report

By Application 

  • Drug Discovery
  • Clinical Trial Design & Optimization
  • Drug Manufacturing & Process Optimization
  • Precision Medicine
  • Pharmacovigilance & Post-Market Monitoring
  • Others (Regulatory compliance, Supply chain analytics)

By Technology

  • Machine Learning (ML)
  • Deep Learning (DL)
  • Natural Language Processing (NLP)
  • Reinforcement Learning (RL)
  • Others (Hybrid AI models, Generative AI, Quantum AI)

By Drug Type

  • Small Molecules
  • Biologics
  • Vaccines
  • Others (Gene and RNA therapies)

By Deployment Mode

  • Cloud-Based
  • On-Premises

By End User

  • Pharmaceutical & Biotechnology Companies
  • Contract Research Organizations (CROs)
  • Academic & Research Institutes
  • Healthcare Providers
  • Others (Regulatory agencies, Data analytics firms)

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
    • Rest of North America
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • Western Europe
      • Germany
      • Italy
      • France
      • Netherlands
      • Spain
      • Portugal
      • Belgium
      • Ireland
      • UK
      • Iceland
      • Switzerland
      • Poland
      • Rest of Western Europe
  • Eastern Europe
    • Austria
    • Russia & Belarus
    • Türkiye
    • Albania
    • Rest of Eastern Europe
  • Asia Pacific
    • China
    • Taiwan
    • India
    • Japan
    • Australia and New Zealand
    • ASEAN Countries (Singapore, Malaysia)
    • South Korea
    • Rest of APAC
  • MEA 
    • GCC Countries
    • Saudi Arabia
    • United Arab Emirates (UAE)
    • Qatar
    • Kuwait
    • Oman
    • Bahrain
  • South Africa
  • Egypt
  • Rest of MEA 

Tags

  • Last Updated: 14 November 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Shivani Zoting is a dedicated research analyst specializing in the healthcare industry. With a strong academic foundation, a B.Sc. in Biotechnology and an MBA in Pharmabiotechnology, she brings a unique blend of scientific understanding and strategy.

Learn more about Shivani Zoting

Aditi Shivarkar is a seasoned professional with over 14 years of experience in healthcare market research. As a content reviewer, Aditi plays a critical role in ensuring the quality and accuracy of all market insights and data presented by the research team.

Learn more about Aditi Shivarkar

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FAQ's

The AI in pharmaceuticals market is valued at USD 2.5 billion in 2026 and is on track to reach USD 21.51 billion by 2035, witnessing a steady CAGR of 27.01% during the forecast span.

North America is currently leading the AI in pharmaceuticals market share by 46% due to the presence of the largest pharmaceutical industry in the region.

The AI in pharmaceuticals market includes 6 segments such as application, technology, drug type, deployment mode, end-user, and region.

Key trends include technological advancements across various processes in pharmaceutical development and a high demand for biologics & biopharmaceuticals.

Pharmacists can identify drug interactions, recommend alternative therapies, and highlight possible safety issues by ingesting and analyzing vast amounts of patient data with the aid of AI-powered clinical decision support tools.

Ministry of Health and Family Welfare, Government of India; National Institutes of Health, FDA, WHO, PIB, CDC, ClinicalTrials.gov, NCBI.