The initial findings from the CPHI Annual Report for 2023, which offers insights from 250 global pharmaceutical companies, indicate that artificial intelligence (AI) is poised to revolutionize every aspect of the pharmaceutical industry, from drug discovery to drug development, within the next two years.
According to the data, it is projected that by 2030, more than 50% of the drugs approved by the US FDA will incorporate AI in their development or manufacturing processes. Notably, the report anticipates that over 40% of drugs discovered through AI technology will receive FDA approval within the next two to five years.
The report highlights that 62% of companies foresee the FDA approving the first fully AI-discovered and developed therapy within the next five years, while 20% believe this milestone could be reached within just two years. Looking ahead to 2030, it is expected that more than half (52%) of newly approved drugs will have been discovered or developed with the assistance of AI.
Furthermore, over 50% of survey respondents anticipate that machine learning will become a routine technology for optimizing pharmaceutical manufacturing processes by 2026.
In a notable shift, the report reveals that “pharmaceutical AI companies” have become the most attractive investment option for venture capital, surpassing “late-stage” and “early-stage” biotech companies, with 26% of respondents favoring them.
The role of AI in the pharmaceutical industry is expected to be pivotal, as executives predict that AI will play a central role in adopting top-ranked technologies that will become commonplace in the industry by 2026. This includes reducing costs through enhanced clinical trial designs, in silico modeling, and manufacturing efficiencies. AI is also poised to improve patient recruitment for clinical trials by analyzing extensive datasets.
AI’s role in optimizing manufacturing processes is expected to be the primary application in the pharmaceutical industry three years from now, according to 52% of respondents. Additionally, nearly 43% believe AI will assist in creating foundational regulatory submissions.
Tara Dougal, Content Director for Pharma at Informa Markets, commented on the transformative impact of AI, stating that it is changing how pharmaceutical companies operate. AI is no longer just a potential tool; it is now being used to enhance target discovery and significantly improve manufacturing, process efficiency, and clinical trials.