The global artificial intelligence in pharmaceuticals market was valued at USD 4.31 Billion in 2025, driven by the rising R&D automation and increasing drug discovery demand across the globe. The market is anticipated to grow at a CAGR of 29.90% during the forecast period of 2026-2035, with the values likely to reach USD 58.96 Billion by 2035. The market is driven by increasing demand for faster drug development and improved diagnostic accuracy. Advancements in machine learning, data analytics, and regulatory support are expected to fuel market growth.
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Over 7 million Americans are living with Alzheimer’s, projected to rise to nearly 13 million by 2050. This growing disease burden is accelerating the adoption of AI in pharmaceuticals to enhance early diagnosis and drug development.
In June 2023, Sanofi scaled up its AI-powered app plai to enhance decision-making, accelerate R&D, and optimize manufacturing. Such AI integration is significantly driving growth in the global pharmaceutical market through efficiency and innovation
A key market driver is the use of AI-generated synthetic data to accelerate drug discovery. For example, in June 2025, Nvidia-backed SandboxAQ released 5.2 million AI-generated molecules to enhance protein-binding predictions, boosting market growth.
Compound Annual Growth Rate
29.9%
Value in USD Billion
2026-2035
*this image is indicative*
Artificial Intelligence in pharmaceuticals is revolutionizing drug discovery, development, and patient care by enabling data-driven decision-making, predictive modeling, and automation of complex processes. It enhances research efficiency, reduces time-to-market, and supports personalized medicine through advanced analytics and machine learning algorithms. The market is experiencing significant growth due to rising R&D investments, increasing adoption of AI-driven technologies, and expanding healthcare data. It is poised to grow at a CAGR of 29.90% during the forecast period of 2026–2035. Pharmaceutical companies are leveraging AI to streamline operations, improve drug efficacy, and optimize clinical trials.
Strategic Regulatory Alignment to Drive Market Growth
The strategic emphasis on regulatory clarity and international alignment for artificial intelligence integration across the medicinal product lifecycle is a significant growth driver in the market. For instance, in October 2024, the European Federation of Pharmaceutical Industries and Associations (EFPIA) underscored the importance of tailored, risk-based, and globally harmonized regulatory frameworks to facilitate AI adoption in drug research, development, and manufacturing. This initiative is expected to accelerate AI implementation, stimulate innovation, and drive sustained growth in the global market.
Some of the trends in the market include AI-driven collaborations and the growing adoption of artificial intelligence in clinical research.
AI-Powered Collaborations Enhancing Growth in Pharmaceutical Diagnostics
The growing integration of AI-powered digital pathology solutions is a key trend shaping the market. In September 2024, Roche expanded its digital pathology open environment by incorporating over 20 advanced AI algorithms from eight strategic collaborators. These tools support cancer detection, biomarker analysis, and risk profiling, enhancing precision medicine and targeted treatment. By advancing diagnostic accuracy and workflow efficiency, this development underscores AI’s transformative role in healthcare and is likely to significantly accelerate market growth in the coming years.
Rising AI Adoption in Clinical Research to Boost Artificial Intelligence in Pharmaceuticals Market Demand
The market is witnessing an increasing use of AI and big data in clinical research. As of December 2024, ICON reported that 49% of pharmaceutical and biotech companies now employ these technologies, marking a 10% rise since 2019. The report also found that 82% of respondents believe AI can improve R&D returns, while 88% expect increased investment in digital tools. This steady adoption, despite regulatory challenges, is poised to drive innovation and enhance the overall market growth in the coming years.
Drug Discovery Segment to Witness Substantial Growth Based on Application
Applications of AI span across drug discovery, research and development, clinical trials, treatment planning and personalization, and others, each reshaping traditional processes with speed and precision. Among these, drug discovery is set to dominate the market, driven by its transformative ability to identify viable compounds in record time and with exceptional accuracy. In February 2025, Google unveiled AI co-scientist, built on Gemini 2.0. This intelligent system collaborates with researchers to generate hypotheses, propose research plans, and evolve ideas, all foundational pillars of drug discovery. By mimicking the scientific method and using specialized agents, this innovation is significantly shortening the path from molecule to medicine. As AI continues to power breakthroughs, drug discovery stands at the forefront of this technological revolution.
The market is divided into regions such as North America, Europe, Asia‑Pacific, Latin America, and the Middle East & Africa. Among these, North America is poised to lead, driven by advanced healthcare systems, robust AI regulation, and strategic technological breakthroughs. For example, in June 2025, the U.S. Food and Drug Administration launched “Elsa”. This generative AI tool, deployed ahead of schedule and under budget, is already accelerating clinical protocol reviews, summarizing adverse events, and flagging inspection priorities, enhancing drug‑review efficiency. Such initiatives are expected to accelerate global adoption and redefine pharmaceutical research and regulatory practices.
The artificial intelligence in pharmaceuticals market research report by Expert Market Research provides an in-depth analysis of the competitive landscape, offering key insights into patent filings, grant analysis, funding trends, investments, and strategic initiatives by major players. It tracks recent investments, mergers, acquisitions, and partnerships that showcase the market's growth trajectory. Additionally, the report details strategic activities by leading companies, including regional expansions, adoption of new technologies, and efforts to enhance capacity, helping stakeholders better understand the market dynamics and positions of key industry players. Some of the leading players are as follows:
IBM Corporation is a key player in the market, offering advanced AI-driven solutions that enhance drug discovery, clinical trial efficiency, and personalized treatment. Through its AI technology, including the renowned IBM Watson Health, IBM supports real-time medical imaging analysis, predictive models for disease detection, and automated data processing, contributing significantly to accelerating pharmaceutical research and improving patient outcomes.
Deep Genomics is a biotechnology company pioneering the use of artificial intelligence in pharmaceutical research, particularly RNA therapeutics. Its proprietary AI platform, BigRNA, the world’s first RNA foundation model, leverages advanced machine learning to identify novel biological mechanisms and design RNA-based drug candidates. Deep Genomics actively contributes to the global artificial intelligence in pharmaceuticals market by integrating cutting-edge AI with genomics to accelerate therapeutic discovery.
Cloud Pharmaceuticals, Inc. is a prominent player in the market, specializing in AI-driven drug discovery and development. Leveraging Generative AI, the company accelerates target evaluation, molecule design, and clinical study planning. Cloud Pharmaceuticals collaborates with pharmaceutical and biotech firms to optimize the efficiency, speed, and success of developing novel therapeutics.
Microsoft Corporation plays a pivotal role in advancing the global artificial intelligence in pharmaceuticals market through its AI-powered solutions that enhance drug discovery and development. Leveraging machine learning and data analytics, Microsoft supports pharmaceutical companies in identifying disease targets, predicting compound properties, and accelerating research timelines. Its technologies help reduce costs, streamline processes, and foster precision medicine, reflecting Microsoft's strategic commitment to transforming life sciences with AI.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market include Exscientia, NVIDIA Corporation, Insilico Medicine, Atomwise, Inc., Biosymetrics, and Euretos.
The market report offers a detailed analysis of the market based on the following segments:
Market Breakup by Technology
Market Breakup by Drug Type
Market Breakup by Application
Market Breakup by End User
Market Breakup by Region
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Technology |
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| Breakup by Drug Type |
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| Breakup by Application |
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| Breakup by End User |
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| Breakup by Region |
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| Market Dynamics |
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