TLDR: A new report by Define Ventures reveals that artificial intelligence (AI) adoption is an ‘immediate priority’ for most major pharmaceutical companies, including 85% of the top 20 firms. Despite budget constraints, 85% of executives are increasing AI investments, focusing on enhancing productivity, accelerating drug discovery, and streamlining operations like medical writing. The industry is also shifting towards a hybrid model of internal development and external partnerships to leverage AI’s full potential.
Artificial intelligence (AI) is rapidly approaching a ‘tipping point’ in the pharmaceutical industry, with a new report from health-tech-focused venture capital firm Define Ventures indicating that AI adoption is now an ‘immediate priority’ for the majority of major pharmaceutical companies. This urgency is driven by rising costs, evolving regulatory landscapes, and a growing competitive imperative within the sector.
The report, which is the culmination of six months of in-depth interviews and surveys with over 40 C-suite executives, including representatives from 16 of the top 20 global pharmaceutical companies, highlights a decisive acceleration towards enterprise-scale AI deployment. A significant 70% of all pharma leaders surveyed view AI as an immediate priority, a figure that jumps to an even more striking 85% among the top-ranking Big Pharma companies.
Despite broader budget contractions across the industry, investment in AI is on the rise. An overwhelming 85% of executives reported increasing their AI investments, with 40% doing so significantly and 45% somewhat. These investments are strategically directed towards improving productivity, accelerating the lengthy and expensive drug development process (which currently averages 10-15 years and $2.6 billion per new therapeutic), and protecting profit margins.
Key areas of focus for AI implementation include reducing administrative burdens and improving workforce efficiency, cited by 100% of respondents as AI success metrics. R&D efficiency (80%) and revenue acceleration (75%) also rank high. Specifically, medical writing emerged as a top AI priority for 94% of respondents for the coming year, reflecting a strong appetite for automation in high-volume, lower-risk areas. Furthermore, 80% of leaders are concentrating on leveraging AI to reduce the cost of therapeutic discovery, streamlining tasks such as literature reviews, hypothesis generation, and lab automation, and building infrastructure for complex multimodal data. Target identification is also a priority for 77% of executives.
The industry is also witnessing a significant shift in its approach to AI development. Historically, pharma companies favored building AI solutions in-house. However, the Define Ventures report indicates a move towards a hybrid model, balancing proprietary control with the speed and expertise offered by external partners. This is evidenced by collaborations such as Sanofi partnering with OpenAI to build pharma-specific foundation models, Pfizer leveraging platforms like XtalPi for molecular screening, and AstraZeneca working with BenevolentAI to uncover novel targets.
Recognizing the ethical and data security implications of AI, approximately 80% of pharma leaders reported that their companies have already established dedicated AI governance structures, with another 20% in the process of setting them up. For 80% of these structures, ethics and safety are the primary focus.
Also Read:
- FDA Unveils ‘Elsa’ AI Tool, Promising Accelerated Regulatory Approvals
- Stanford’s 2025 AI Index Report Highlights Unprecedented Investment and Rapid Advancements in Artificial Intelligence
Lynne Chou O’Keefe, founder and managing partner of Define Ventures, emphasized the critical juncture the industry faces: “Pharma’s AI future will be defined in the next 12 to 24 months. What we’re seeing is a decisive acceleration to enterprise execution—with leaders embedding AI into core workflows to drive speed, efficacy, and real ROI. But internal teams can’t do it alone. This moment is a generational opportunity for startups that are ready to scale, integrate seamlessly, and speak pharma’s language.” This underscores that while Big Pharma is strategically integrating AI, the broader disruption is also being driven by agile startups and Big Tech, reshaping drug delivery and patient access.
