What will be the key trends in AI innovation in the Pharmaceutical Industry in 2025?

The pharmaceutical industry is undergoing transformation thanks to artificial intelligence (AI) in particular GenAI. From drug discovery and manufacturing to speeding up clinical trials and improving sales force effectiveness, AI is reshaping the sector in numerous ways.

This trend is set to increase, and the impact of AI will be more pronounced in 2025, enhancing efficiency, reducing costs, and improving patient outcomes.

One area where we’re seeing evolution in real-time is the role of medical representatives, where AI models are helping to improve training on product knowledge and communication - leading to much improved overall performance.

Here’s a deeper look into how AI is set to shape pharma in 2025:

Drug discovery and development

For decades, the pharmaceutical sector has relied on computers and mathematical models to design new drugs. However, the rise of generative AI (powered by deep neural networks and large language models) has introduced exciting new possibilities.

Pharmaceutical start-up companies like Recursion are aiming to leverage AI to manage a much larger pipeline of drug discovery programmes and they are not alone in harnessing AI to discover new drug targets, enabling them to make innovative connections and insights. In addition, BenevolentAI recently shared promising safety data from a Phase Ia trial for BEN-8744. [i]

Start-ups like BenevolentAI and Recursion are making a compelling case for the transformative power of AI in drug discovery, and big pharmaceutical companies are starting to take notice. Over the past five years, nearly all major pharma players have dipped their toes into AI, primarily focusing on drug repurposing. However, there's a noticeable shift from repurposing to developing new drugs, a trend expected to continue into 2025.[ii]

With this said, there are a number of complexities including IP concerns, in 2023, the UK Supreme Court ruled that AI cannot be named as an inventor on patent applications. This issue has yet to be litigated specifically within the context of drug discovery, leaving some uncertainty in how AI-generated innovations will be treated legally.[iii]

AI in Clinical Trials

The market for AI-based clinical trial solution providers is projected to reach USD 1.73 billion in 2025, growing at a compound annual growth rate (CAGR) of over 21.6% as companies increasingly adopt AI to enhance the accuracy and productivity of clinical trials at various stages [iv].

Tools such as MedDossier developed by Vivanti is just one example of innovative technology that can streamline the development of CSR documentation and CTD submissions.

Pharmaceutical companies are already seeing AI’s potential in transforming how clinical trials are undertaken. By using AI to optimise trial design, improve patient recruitment, monitor real-time data, and streamline the submission process, pharmaceutical companies can significantly reduce both the cost and duration of clinical trials.

According to research, AI has the potential to reduce trial costs by up to 70% and shorten timelines by as much as 80%[v]. By improving the efficiency of clinical trials, new drugs will come to the market more quickly and at a lower cost, which will benefit patients and healthcare systems worldwide.

AI in Sales Force Effectiveness

A 2024 report by McKinsey suggests that utilising GenAI can lead to a 10% to 15% improvement in the productivity and effectiveness of field teams, which in turn may result in 1% to 2% growth in topline revenue.

AI-driven training tools such as Vivanti’s AVA AI Trainer (Part of the COSMART Suite of commercial excellence solutions) are improving the effectiveness of Medical Representatives by providing dynamic, realistic simulations in effective HCP engagement and interactions. These tools help Medical Representatives build the skills needed to communicate critical product knowledge, address objections, and engage HCPs more effectively.

By 2025, AI-powered training platforms will be essential in medical sales, bridging the gap between marketing and sales ensuring a unified strategic approach with the flexibility to pivot according to market trends and business needs.

AI in Precision Medicine

The use of AI in precision medicine, which customises treatments to individual patients’ needs, based on their genetic makeup, environment, and lifestyle, is also increasing.

AI-powered tools can analyse complex patient data and recommend personalised treatment plans, ensuring patients receive the most effective therapies for their specific needs. In oncology, for example, AI can help optimise drug dosing and identify the most promising treatment combinations based on a patient’s unique genetic profile[vi].

One area set to grow is in cancer diagnostics, where AI applications are projected to expand at a compound annual growth rate (CAGR) of 40.1% from 2021 to 2028[vii].

Manufacturing and the supply chain

Another impact we are seeing is in manufacturing and the supply chain where AI is helping to streamline and optimise operations. One of the main reasons is that AI-powered systems can reduce human errors and detect problems in real time, ensuring products meet regulatory standards and reducing time and waste.

Many predict that by 2025, AI will enable hyper-connected, self-adjusting production lines that reduce labour costs and improve operational efficiency[viii].

Incorporating AI into the supply chain will speed up procSesses, and ultimately lower costs, allowing companies to respond more quickly and nimbly to market demands while maintaining high-quality standards.

A Glimpse into 2025

The integration of AI solutions in the pharmaceutical industry is rapidly gaining traction, with regulatory bodies such as NICE (the National Institute for Health and Care Excellence) and the FDA (U.S. Food and Drug Administration) actively endorsing AI technologies for medical applications. As of August 2024, the FDA has approved 950 AI/ML-enabled medical devices, demonstrating a strong commitment to incorporating AI into healthcare practices. This trend reflects a broader recognition among regulatory agencies of AI's potential to enhance patient outcomes and streamline various processes within the medical field.[ix] [x]

Despite the promising benefits, the integration of AI into the pharmaceutical industry comes with its own set of challenges. Issues such as data transparency, algorithmic biases, and ethical concerns about patient privacy and job displacement need to be carefully addressed. However, these challenges also present opportunities for innovation, as the industry as a whole works to ensure AI systems are transparent, fair, and secure.

One thing is certain, AI’s potential to generate significant economic value for the pharmaceutical sector is significant. It is estimated that AI could create between $350 billion and $410 billion in annual value by 2025[xi], driven by innovations in drug development, clinical trials, precision medicine, and commercial operations. Companies that successfully integrate AI into their strategies will have a competitive advantage in the rapidly changing healthcare landscape.

While there will remain significant challenges to overcome, the potential benefits of AI in the industry are clear.  The advancements we anticipate seeing in 2025 could lead to more efficient, effective, and personalised healthcare that ultimately benefits patients and providers alike. The future is bright for AI in healthcare, and its transformative potential is just beginning to unfold.

Topics: AI & Digital