Pharmaceutical Market Europe • September 2025 • 20-21
AI AND DIGITAL
By Ramji Vasudevan and Adam Caplan
Pharmaceutical firms are shedding their technological conservatism. After years of cautious hesitation, the pharma industry now rapidly embraces digital engineering and artificial intelligence solutions. Why the change? Stringent regulations once held innovation back. Not anymore.
Today’s pharma landscape buzzes with AI-driven possibilities that reimagine how medicines move from laboratory concept to patient care. Most pharma companies have been late to the party. In recent years though, they’ve worked diligently to catch up and maximise AI implementation. This newfound enthusiasm springs both from competitive necessity and from witnessing impressive early AI successes in healthcare settings.
Regulatory compliance worries have long shaped pharma’s cautious approach to AI adoption. The highly regulated nature of the industry creates unique challenges when moving to digital and AI integration. Many initial obstacles stemmed from keeping innovations within compliance rails while meeting regulatory needs. Recent breakthroughs in explainable AI, technologies that make artificial intelligence decisions more transparent, now help companies navigate regulatory boundaries with greater confidence. This technological shift arrives alongside a broader mindset evolution. Old legacy systems give way. Outdated beliefs crumble. More open attitudes toward data and AI’s potential take root across the
sector. Yet one stubborn obstacle remains.
Many companies struggle to scale beyond initial proof-of-concept (PoC) projects. It is relatively easy to create stand-alone experiment PoCs, but expanding them into production across multiple areas becomes challenging because data often lacks the organisation necessary for scaling.
AI in pharmaceuticals spans blue-sky possibilities to immediate practical applications delivering value today. AI-powered drug discovery stands as perhaps the most transformative potential application.
‘AI promises to transform patient engagement through customised treatment plans tailored to specific conditions and needs’
This represents the most interesting and impactful area, with all major pharma companies investing in technologies like AlphaFold and other generative AI solutions. Beyond flashy headlines about drug discovery lie less glamorous but highly effective AI applications. Call centres now deploy AI agents alongside human representatives, boosting efficiency without eliminating the human touch. Most pharmaceutical companies wisely implement a ‘human in the loop’ approach, where AI suggestions or actions are reviewed, guided or approved by a person, rather than exposing AI directly to customers. This helps ensure accuracy, safety and accountability in sensitive environments.
Marketing compliance teams have discovered AI’s value too. The traditional process involves marketing teams creating information about specific drugs, then sending materials through a compliance review process that often faces significant backlogs. Generative AI creates an ideal opportunity for compliance bots that can perform initial reviews before human compliance officers get involved.
Has AI improved patient outcomes? The early signs are promising. Gains in operational efficiency are easier to quantify. When it comes to use cases such as boosting employee productivity or saving staff hours, the impact can be measured relatively clearly. For example, call centres and marketing teams can track time saved with precision. Improvements to patient health, however, are harder to measure but arguably more important.
In other areas, AI-driven supply chain optimisation helps ensure that critical medications reach patients within short expiry windows. Faster drug discovery also has the potential to significantly speed up access to treatment. The rapid development of COVID-19 vaccines remains a powerful example of how data sharing and AI can accelerate scientific progress.
The same can be said for patient onboarding, which has already shown promising results. Success comes from streamlining insurance submissions, appointment scheduling, clinical trial preparation and medication access. These improvements collectively enhance patient experiences while reducing administrative barriers to care.
Pharmaceutical manufacturing involves intricate multi-stage processes from raw materials to finished medications. Traditional ‘make, test, release’ cycles typically crawled along through paper-driven, time-intensive procedures. The inefficiency can be shocking. When a deviation appears in test results during batch production, the resolution process takes approximately 30-34 days for some manufacturers. These delays create more than inefficiency, they represent missed opportunities for quality improvement.
Digital tools and AI now compress these decision cycles dramatically. Using database-driven decision-making and AI, companies can analyse where these 34 days go and then shorten the entire cycle. Many manufacturers now target reducing deviation resolution from over a month to just a single day. Such improvements would radically enhance manufacturing agility.
AI promises to transform patient engagement through customised treatment plans tailored to specific conditions and needs. Generative AI can create personalised plans for patients by understanding their conditions and determining optimal solutions.
Regulatory considerations currently limit direct patient applications. Nevertheless, healthcare providers increasingly utilise AI-generated analyses to inform patient interactions. The real breakthrough comes when AI systems connect to proprietary pharmaceutical data rather than relying solely on general information.
Wearable technology opens new frontiers for patient monitoring and decentralised clinical trials. Promising applications emerge from wearable tech and patient engagement, particularly during clinical trials. Future solutions might combine wearable data with AI to create personalised health insights and symptom reporting tools.
Large language models now appear throughout pharmaceutical organisations, from HR and marketing to legal and clinical departments. Yet their true value emerges only when connected to internal company data. Some companies now encourage the use of tools like ChatGPT to employees, but the real value and hard work comes when connecting these systems to actual internal proprietary data. This integration transforms generic AI into specialised tools with deep domain expertise.
‘GenAI creates an ideal opportunity for compliance bots that can perform initial reviews before human compliance officers get involved’
One significant challenge persists: ‘hallucinations’. These AI-generated responses appear plausible but contain factual inaccuracies. In highly regulated pharmaceutical environments, such errors could have serious consequences. While connecting AI to proper data dramatically reduces hallucinations, they haven’t been eliminated entirely. Better data and robust feedback mechanisms offer the path forward.
Two promising areas emerge as focal points for future development, that of conversational AI and analytics. Static dashboards no longer satisfy. Users want insight-driven dialogue with data. Conversational analytics represent an exciting frontier, moving beyond traditional dashboards to provide genuine insights. This trend grows rapidly across industries, particularly within pharma and across various departments.
Single AI systems give way to specialised agents with distinct responsibilities. Different agents handle specific tasks: some summarise data; others verify the work of peer agents; while others can take concrete actions. This approach improves accuracy by having specialist AI tools focus on specific tasks while an orchestrator agent manages their interactions, particularly valuable in regulated environments where mistakes cannot be tolerated.
Pharma’s journey from cautious observer to AI innovator accelerates daily. Evolving regulatory frameworks and expanding technological capabilities drive a transformation that promises benefits throughout the medication life cycle. Challenges persist, particularly around data organisation and regulatory compliance. Yet the direction seems clear. Tomorrow’s pharmaceutical success will depend not just on scientific discovery but on effectively embedding AI and digital technologies within industry workflows and decision processes. This fusion of scientific excellence with digital intelligence represents perhaps the most profound transformation the industry has experienced in decades.
Ramji Vasudevan is Head of Life Sciences and Adam Caplan is President of Digital Business and AI, both at Altimetrik