How AI is Reshaping the Pharmaceutical Industry

 

 

Introduction

With the advent of artificial intelligence (AI), every aspect of humans and business is facing the impact. AI is steadily changing how industries work.  The pharmaceutical sector is no different; AI is bringing new ways to solve old problems. From speeding up drug discovery to making clinical trials more efficient, AI is creating real improvements. But it's not all smooth. There are issues around data safety, regulations, and the role of human workers. In this blog, I will try to explain how AI is affecting pharma today, with insights from experts.

Pharma Is Slow, Expensive, and Risky

One of the biggest issues with the pharma industry, which is also the core also is that developing a new drug is not easy. On average, it takes around 10-15 years and costs more than billions to bring one drug to market. Secondly, most drugs fail during the clinical trial phase. Only about 10% of drugs that enter clinical trials actually get approved.

Other operational issues include:

• Delays in patient recruitment for trials
• Long and manual processes in research and manufacturing
• Difficulty in predicting how patients will respond to treatments
• Rising costs with little room for error

These challenges make the industry slow to innovate and unable to meet urgent health needs quickly. One of the biggest examples we have seen is during the COVID-19 pandemic. Where countries faced shortages of the COVID-19 vaccine.  

The Consequences

When drug development is slow, patients suffer. During the COVID-19 pandemic, traditional methods wouldn't have delivered vaccines in time. Quick turnaround was possible only because companies used AI tools to speed things up.

• Patients with rare diseases often go untreated for years due to limited research.
• Pharmaceutical companies spend millions on failed trials.
• Delays in drug approval can lead to higher mortality and public mistrust.

On top of that, the amount of data in healthcare is growing fast. But making sense of it without AI is nearly impossible. Manual analysis isn't enough when you're dealing with millions of patient records, genetic data, and clinical notes.

 AI Brings Practical Tools to the Table

AI helps make sense of large data sets, find patterns, and make predictions. It doesn't replace scientists or doctors, but it supports them in making better, faster decisions.

Let's explore where AI is already making a difference.

1. Drug Discovery

What AI Does?

• Analyses data from past research to predict which compounds might work
• Simulates how new drugs will behave in the body
• Reduces the need for trial-and-error in labs

Example:

• Benevolent AI helped identify baricitinib, an arthritis drug, as a potential COVID-19 treatment. This was achieved in just a few days using AI algorithms.
• DeepMind's AlphaFold predicted the 3D structure of over 200 million proteins, a task that would take humans years.

Impact: Drug discovery timelines are cut by years, and costs are reduced by up to 70% in some cases.

2. Clinical Trials

What AI Does?

• Matches eligible patients to clinical trials using electronic health records (EHRs)
• Predicts which patients are more likely to respond to a drug
• Flag potential safety issues early

Example:

• Pfizer used IBM Watson to match patients to oncology trials. This reduced the time taken for recruitment significantly.

Data Point: Around 80% of clinical trials are delayed due to problems with recruitment. AI can cut this delay by up to 30%.

3. Personalised Treatment

What AI Does?

• Analyses genetic, lifestyle, and environmental data to recommend treatments
• Helps doctors make more informed decisions

Example:

• Tempus uses AI to provide oncologists with data-driven insights for treating cancer patients based on molecular and clinical data.

Impact: Improves treatment effectiveness and reduces the risk of adverse reactions.

4. Manufacturing and Supply Chain

What AI Does:

• Predicts equipment failures before they happen
• Optimises supply and demand planning

Example:

• Novartis has been using AI to monitor its production lines, reducing waste and improving efficiency.

Data Point: Predictive maintenance using AI can reduce unplanned outages by up to 50%.

The Advantages: Why AI Makes Sense

• Faster time to market: AI tools cut months or years from R&D timelines.
• Better decision-making: AI helps identify patterns that humans might miss.
• Improved accuracy: Reduces human error in data analysis and prediction.
• Cost savings: Automates tasks that would require large teams.
• Scalability: AI systems can handle growing amounts of data without losing speed or accuracy.

It's Not All Smooth Sailing

Despite the progress, using AI in pharma isn’t without its issues.

1. Data Privacy and Security

Patient data is sensitive. AI needs large datasets to work well, but this increases the risk of breaches.

Concerns:

• Compliance with HIPAA, GDPR, and other data protection laws
• Need for anonymisation and encryption
• Who owns the data? Patients or companies?

2. Regulatory Hurdles

AI tools must be approved by regulators before use. But current frameworks were built for traditional methods, not algorithms.

Challenges:

• Lack of clear guidelines
• Need for "explainable AI" that regulators can understand

3. Trust and Human Expertise

Doctors and researchers may hesitate to rely on AI, especially when they don’t understand how it works.

Issues:

• Black-box models offer predictions but not explanations
• Need for training to help staff use AI tools properly

4. Bias in AI Systems

If the data used to train AI is biased, the results will be too. This can lead to wrong or harmful outcomes.

Fix: Regular audits and diverse data sets are necessary to avoid these issues.

Expert Insights: What the Leaders Say

Eric Topol, MD, says, "AI won't replace doctors, but doctors who use AI will replace those who don't."

Vas Narasimhan, CEO of Novartis, calls AI "essential for the future of medicine."

FDA Commissioner Robert Califf has spoken about the need to modernize regulation to keep up with AI's growth in healthcare.

What's Next for AI in Pharma?

1. Smarter, Explainable AI

Future AI tools will be designed to explain how they work, building trust among users and regulators.

2. Wider Use in Developing Countries

AI could help bring modern medicine to areas with fewer resources by speeding up diagnosis and treatment.

3. Closer Collaboration with Regulators

Regulatory bodies are starting to work more closely with companies to create safe and effective AI tools.

4. AI-First Biotech Startups

New companies are being built around AI from day one, giving them an edge in speed and innovation.

Conclusion

AI is not going to solve all the problems that industry is facing; However, it's a strong tool that can help fix some of the biggest problems in pharma. By accelerating drug discovery, enhancing trials, and delivering personalised care, AI yields tangible, measurable benefits. However, it also brings new responsibilities, including protecting data and ensuring fair use. Companies that embrace AI thoughtfully and responsibly will be the ones that lead the way.

The future of pharma isn't just digital. It's smarter, faster, and more connected. And AI is at the center of that change.

 

Health tech sector funding a brief view

 

Technological innovations have opened up all new possibilities in every aspect of human life and healthcare is no different rapid changes are happening and the healthcare industry is adopting the technology which has given a significant boost to healthcare start-ups. The US start-up ecosystem is going through an unfathomable shift. Healthcare startups are innovating and leveraging new technologies to make a difference in human life. These start-ups not only help patients track and monitor their health status, but they are making it easier for the Drs. to keep the record. These start-ups define the future. We will briefly study the changes in the funding since 2022 and upcoming trends.

US Health Tech Startups Funding

The health tech sector has been on the rise with technological innovations (mobile technology) and it has gained an exponential rise in post covid. The pandemic has divided the timeline into two parts pre-covid era and post covid, as COVID-19 impacted human life 360 degrees. Post-COVID health tech has seen significant demand and a sharp rise for a better alternative solution, better technology to interpret patient data and predict the health status, and better monitoring of the patient not only in the hospital but remotely as well. This has given rise to health tech startups and significant opportunities for venture capitalists. According to research published by Rock Health, health tech startups in the U.S. raised over $29 billion in funding in 2021 which was an upsurge in VC funding.

Post-2022 there is a change in funding and it has moved downwards the investment of USD 16 billion and USD 10.3 approx for the year 2023 and USD 10 billion for 2024. The downward trend in funding is due to changes in VC investment trends. As per the report the VCs are investing in early-stage start funding, another reason the size of the deals for later-stage funding startups in 2024 has come down to USD 50 million approx. These numbers have impacted overall investment numbers. There is a technological shift in the market, AI is on the front seat and has become a major driving force in the technology industry. AI-based Health Tech started attracting the VC to invest in AI-driven projects. The 30% investment in the health tech sector has gone into AI-driven start-ups. With advancements in AI technology, the health tech sector is going to grow and will going to be a lucrative segment for VC investors.

 Global Funding Overview

The global VC investment has touched USD 25.1 billion in health tech start as compared to last year however this is a slight increase from last year. The ride in health tech fund was topsy-turvy in the sector due to changes in investment patterns and AI innovations. The VCs are keener on early-stage funding rather than established startups and AI-based tech start-ups have taken more than 20% of total global investment, the startups need to follow the technological changes to be in the game.

Challenges

Despite the sector's huge growth potential and demand for better healthcare technology, healthtech startups are fighting their own battle in terms of regulatory challenges, data security and privacy concerns, with the AI being the driving force the adoption of new technology needs acceptance from the people across the globe which is a challenging process. But with changing social scenarios the adoption of technology is quicker than ever before and in the coming future, this will improve.

 Key Areas of Innovation

US healthcare startups are focusing on a range of services and applications.

1. Telemedicine and Virtual Care == Teladoc Health and Amwell

Telemedicine is one of the fastest-growing technologies that has captured the market and is widely accepted during the pandemic. Telemedicine companies have revolutionized the way patients interact with healthcare providers and enabled patients to have remote consultations. These applications make healthcare approachable for remote areas.

2. Wearable Devices and Remote Monitoring

Wearable technology is the second most widely recognized by patients across the globe. It empowers patients and providers to monitor the physical activities of patients and their health status on real real-time basis.

3.  Artificial Intelligence and Machine Learning

AI-powered health tech is going to be the norm and future, AI technology is changing every aspect of health care be it diagnostics, medicine, pathology or critical care. AI is playing a significant role in predictive health care by recognizing analyzing current health data and predicting future possibilities of diseases as well as suggesting the required medication and care.

4. Digital Therapeutics and Mental Health

Health tech is advancing in providing Digital therapeutics treatments for conditions like addiction, depression, and anxiety. The companies are developing software that is helping in understanding the patient conditions and able to provide better analysis and tracking. Also, they are cost-effective.

5. Healthcare Data Management and Interoperability

Healthcare data management is in significant transformation, health tech companies are developing where data can be easily portable from one platform to another, helping providers in providing better analysis of patient data.

6. Medicine and Genomics

Medicine and Genomics health tech companies are making it easier to understand hereditary issues with patients and helping to make genetic testing easier for patients and providers to understand.

 

Key health tech startups

The health tech landscape is ever-changing and new players are leading the sector. Here is the list of this year's tech start-ups to watch for.

• Medi Builder- Specializes in evaluating medical device concepts for commercial viability, providing comprehensive analyses to determine market potential.
• Doctolib - European platform facilitating online appointment scheduling and teleconsultation services
• Ro- Focuses on telehealth and digital pharmacy services.
• Tempus – AI-based platform to interpret insights from the clinical data in precision medicine.
• Organ Ox – Work in organ donation and preservation of organs for transplant outcomes.
• Ribbon Health – Works with healthcare data to provide predictive analytics.
• Luma Health – Works in the field of electronic health records.
• Linus Health- Develop digital tools for remote patient monitoring,

The above are the few companies from a long list to watch in 2025.

 Conclusion

The global scenario of health tech start-ups looks promising, with startups constantly innovating in finding new ways to provide better care to patients, better interpretation of healthcare data and predictive healthcare the possibilities are immense.  On the other hand, as technologies improve and develop, they will give the edge to healthcare startups and they will play an important role in providing care to society and in developing advanced healthcare systems.

These startups are the key and play a vital role in improvising the healthcare structure globally as they are at the forefront of finding the gaps in existing healthcare systems. As these start-ups focus on innovation and technology they are of paramount importance in the present healthcare systems. The healthtech companies with the help of AI are better equipped in the interpretation of health data and the care to be provided.  

Further, the ecosystems also need to be developed for better operations of these healthcare startups and policymakers and healthcare organizations need to be ready for that. The future lies in the better coordination of policymakers and healthcare organizations to overcome future challenges. Health tech startups are a way of the future with a continued investment this industry will always remain lucrative for investors. The health tech start-ups are solving critical problems in healthcare sectors they will always be a key player in society and will impact the health of citizens.

 

Remote Patient Monitoring(RPM) & AI

 

With the advancement in device connectivity and high internet speed, RPM (Remote Patient Monitoring is gaining momentum and will be the way of the future. It is the service which is fast gaining acceptance and popularity in the US healthcare industry and other countries are catching up with it, the term is “Remote Patient monitoring". RPM has given a significant boost to Post-surgical care and preventive healthcare across the globe and addressed some of the pressing issues in healthcare. Providers and hospitals are using the RPM which is proving to be effective in care and cost. Remote patient monitoring (RPM) has revolutionized healthcare by enabling doctors to track patients' health from a distance. Remote patient monitoring(RPM) collects, analyzes and stores health information through live monitoring via devices such as (sensors, Wearable devices, and Blood pressure monitoring machines) or Mobile applications that transmit information from the home or care facility to a provider that either stored in a local facility or cloud. Further, with the integration of Artificial Intelligence (AI), RPM is becoming more efficient, accurate, and personalized. AI-powered RPM is changing the way healthcare professionals diagnose, treat, and manage chronic conditions, ultimately leading to better patient outcomes and reduced hospital visits.

The data collected by devices is later used by providers to monitor the patient's health condition and track improvement. The data collected can also provide alerts when patient health is not improving and go to Doctors, hospitals, and clinics. RPM was already gaining momentum, and post-pandemic, it's getting attention in the healthcare world. RPM has gradually become a very lucrative option for hospitals and clinics.

Remote patient monitoring is primarily used in critical care such as Patients suffering from Diabetes with critical levels, High/low blood pressure, and post-surgery monitoring (patients underwent major surgeries and required monitoring for some time. Doctors, with the help of devices, collected the patient data at regular intervals and analysed and provided treatments according to the data results.

Patient data received through various devices can also be stored in the cloud and later shared with doctors for early diagnosis. Based on the health data shared by the patient's devices, a health coach or caregiver is assigned to the patient, who guides the patient in medication, exercise, and wellness.

Example: In cardiac care Patients with advanced, AI-enabled pacemakers can share their measuring parameters with their Drs/Nurses without going to the clinic. The continuous flow of the data has improved the patient monitoring and helping Drs. To take the right decisions at patient crucial stages such as heart attacks, and hypertension. Continuous monitoring of patient data also allows Dr. to predict the patient's health and the precautions he/she needs to take.

Market Size

Providers, clinics, and hospitals have significantly increased their implementation of RPM in the US and globally. According to GVR(Grand View Research), the global remote patient monitoring market was estimated at USD 5.2 billion in 2023 and is expected to register a compound annual growth rate (CAGR) of 18.6% from 2024 to 2030. 

Image 1: US (RPM) remote patient monitoring systems market

However, remote patient monitoring with the use of Artificial intelligence (AI) research is happening to make the tools better and to get better insights and reports also with the AI and predictive analysis helping Drs. To predict the health of the patient after getting treatment. Research is happening on devices such as (Sensors, and other electronic devices) to get the precise vital readings of the patient and accurate to increase the effectiveness of the devices and also improve their connectivity by making the RPM more effective and efficient.

North America is a leading player in the remote patient monitoring system industry in 2023, accounting for more than 41.37% of the total market share. The rise of chronic diseases has pushed the demand for wireless and portable systems along with the presence of reimbursement structures aimed at cutting expenditure are the major factors attributed to growth.

Advantages of RPM

Real-time Data Analysis and Predictive Insights

Traditional RPM devices collect vast amounts of patient data, but AI takes it a step further by analyzing this data in real-time. Machine learning algorithms can detect abnormal patterns in vital signs, such as heart rate, blood pressure, or glucose levels, and alert healthcare providers before a condition worsens. Predictive analytics can also forecast potential health risks, allowing doctors to take proactive measures.

Enhanced Chronic Disease Management

AI-driven RPM is particularly beneficial for patients with chronic diseases like diabetes, hypertension, and heart disease. Smart wearables and connected devices continuously monitor patient vitals and use AI to offer personalized recommendations. For instance, AI-powered insulin pumps adjust insulin doses automatically based on real-time glucose readings, reducing the risk of complications.

Improved Patient Engagement and Adherence

AI-enabled RPM systems encourage better patient engagement by offering real-time feedback, reminders, and coaching. Chatbots and virtual health assistants powered by AI help patients stay on track with medication schedules, lifestyle changes, and follow-up appointments. By providing educational insights and motivation, these tools enhance adherence to treatment plans.

Remote Diagnostics and Virtual Consultations

Telemedicine combined with AI-powered RPM allows doctors to diagnose and treat patients remotely. AI algorithms analyze patient symptoms, medical history, and current health data to provide diagnostic suggestions. This reduces the need for frequent hospital visits, making healthcare more accessible, especially for patients in rural or remote areas.

Early Detection of Health Issues

AI’s ability to detect early signs of diseases is transforming preventive healthcare. By continuously analyzing physiological data, AI can identify deviations that may indicate the onset of conditions such as atrial fibrillation, sepsis, or respiratory distress. Early detection enables timely interventions, preventing complications and reducing healthcare costs.

Integration with Smart Wearable and IoT

The rise of smart wearable’s and Internet of Things (IoT) devices has enhanced the capabilities of AI-driven RPM. Devices such as smartwatches, biosensors, and connected ECG monitors continuously collect and transmit health data to AI systems. These AI models process the data to provide real-time insights and recommendations for both patients and healthcare providers.

Enhanced Security and Data Privacy

AI also plays a crucial role in securing patient data. With advanced encryption and anomaly detection, AI enhances cyber security in RPM systems, preventing data breaches and ensuring compliance with regulations such as HIPAA and GDPR. AI-driven authentication methods, such as biometric verification, further strengthen patient data protection. The importance of remote patient monitoring (RPM) has been observed during the COVID-19 pandemic. It has helped doctors to monitor their patients without physical contact and this also has minimized the risks of spreading the virus. Remote patient monitoring has changed the healthcare monitoring device industry dynamics the healthcare devices market is continuously growing with a CAGR of 18% by 2030.

Image 2: Healthcare device market size

Healthcare technology is evolving and new research is happening every day and making RPM more effective for patients. As a result of that now sensors are being used with devices and smartphones along with AI to gather the patient's vital data. Sensors have given the freedom to patients from wearing the devices and track their vitals, such as ECG, vitals of pre-mature born babies, heart rate, etc. These sensors also have a range to capture the patient's data so, patients have to be within the range for data to be captured. Apart from sensors, other technologies are also used in combination with sensors are cameras and Smartphones to capture the patient's vitals.

Smartphones

Apart from RPM devices, Smartphone technology has improved significantly Smartphones are now equipped with AI and the sensors in mobile phones have significantly improved, and that has led to rapid growth in the field of telemedicine and patient monitoring applications. Telemedicine applications have emerged to complete telehealth solutions.

Smartphones are equipped with AI tools and can be easily integrated with the SDKs of different devices for smooth data transfer to the doctor. The Patient data can be shared with the Drs. on a real-time basis. Smartphone application also helps in maintaining patient’s vital data both on the device and on the cloud. Smartphones also provide two-way communication that helps Dr. to reach out to the patients; apart from this Smartphones are easy to use by patients and help patients in self-care.

With the increasing use of RPM, there is a rise in Home patient monitoring, which allows healthcare providers to monitor patient's health conditions in the home. With the invention of Sensors, wearable devices, and Smartphones it is easy to track patient vitals without him visiting hospitals/clinics. In this pandemic time, Home patient monitoring keeps a lot of critical and elderly patients safe at home. This also allows a lot of communication between doctors and patients and patients are also becoming an active contributor to their treatments.

Conclusion

Remote patient monitoring is going to have a significant impact and pave the way to new kinds of patient care. The RPM in due course of time is becoming more advanced and will be gaining more acceptance as an integral part of patient treatment and care. The future of remote patient monitoring will be the way of the future.