AI Powered Revolution in Drug Industry: Transforming R&D and Financial Growth

The global artificial intelligence (AI) in drug discovery market, valued at USD 6.3 billion in 2024, is projected to grow at a CAGR of 10.1%, reaching approximately USD 16.5 billion by 2034. The U.S. leads with a 41% market share, driven by strong research funding, government support, and AI adoption in R&D. AI-driven innovations have accelerated drug repurposing, reducing development time by up to 40%. Major pharmaceutical firms, including Johnson & Johnson, are making substantial AI investments, with J&J allocating $5.3 billion (~24% of 2024 sales) to AI-driven drug development. We also note an upsurge in U.S. life sciences venture funding. AI’s impact on improving R&D efficiency, lowering drug development costs, and increasing clinical trial success rates is fueling rapid market expansion. As AI becomes integral to drug discovery, it presents a transformative opportunity to optimize timelines, reduce costs, and enhance clinical success rates.