Visiongain has published a new report entitled AI-Enabled Drug Discovery and Clinical Trials Market Report 2025-2035: Forecasts by Components (Services, Software Solutions), by Application (Clinical Trials, Drug Design, Data Aggregation and Analysis, Drug Characterisation, Biomarker Research, Others), by Therapeutic Area (Oncology, Cardiovascular Diseases, Infectious Diseases, Neurodegenerative Diseases, Metabolic Diseases, Immunological Disorders, Others), by End-users (Pharmaceutical & Biopharmaceutical Companies, Contract Research Organisations (CROs), Academic Institutes and Research Centre) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global AI-Enabled Drug Discovery and Clinical Trials market is estimated at US$3,228.6 million in 2025 and is projected to grow at a CAGR of 24.1% during the forecast period 2025-2035.

Accelerated Drug Discovery Through AI Integration

The incorporation of artificial intelligence (AI) into drug discovery is streamlining the identification and development of new treatments, cutting down both the time and expenses involved in conventional drug development methods. AI models can rapidly analyze vast datasets, predict drug-target interactions, and identify promising candidates for clinical trials. This accelerated process is particularly valuable for addressing unmet medical needs and rare diseases, where conventional research methods are often time-consuming and resource-intensive. For instance, AI-driven platforms have enabled pharmaceutical companies to identify novel compounds in months instead of years. This innovation enhances productivity, increases the likelihood of successful drug approvals, and provides a competitive edge for companies adopting AI in their research and development pipelines.

For instance:

• On 27^th January 2025, LinkedIn co-founder Reid Hoffman and cancer researcher Siddhartha Mukherjee, Manas AI raised $24.6 million to utilize AI in analyzing vast biological datasets for drug discovery. Initially targeting breast cancer, prostate cancer, and lymphoma, the company aims to expand its focus to other diseases, potentially speeding up the development of new drugs.
• On 10^th December 20024, GSK entered a $300 million partnership with UK biotech firm Relation Therapeutics to develop treatments for osteoarthritis and fibrotic diseases using machine learning. Relation Therapeutics generates data from human tissue to reduce drug discovery costs and failures, enhancing innovative treatments for diseases with limited current options.

What are the Current Market Drivers?

Increasing Partnerships Between Pharmaceutical Firms and AI Startups

The AI-driven drug discovery sector is expanding rapidly, fueled by strategic alliances between pharmaceutical companies and AI technology innovators. These partnerships leverage advanced AI algorithms and machine learning models to identify drug candidates, optimize clinical trials, and reduce time-to-market. 

For instance:

• On 25^th March 2025, Navina, a healthcare startup specializing in AI-driven data analysis, raised $55 million in Series C funding led by Goldman Sachs. Founded in 2018, Navina’s AI technology integrates with electronic health record systems to provide clinical insights, flag potential diagnoses, identify risk factors, and spot medication conflicts. The platform is utilized by 1,300 US-based clinics, aiming to improve care quality and outcomes by efficiently managing and analyzing patient data. ​
• On 21^st March 2025, AstraZeneca announced a $2.5 billion investment over five years to establish a research and manufacturing center in Beijing, which includes the creation of an AI and data science laboratory. This initiative is part of a strategic partnership with Beijing authorities to enhance early-stage research and clinical development, underscoring AstraZeneca’s commitment to integrating AI into its drug discovery processes. ​
• On 8^th January 2025, Advanced Micro Devices Inc. (AMD) invested $20 million in Absci Corp, marking its entry into the AI-backed drug discovery sector. This strategic move aims to accelerate biologics innovation and reduce costs by leveraging AMD’s chips and software.

Rising Demand for Personalized Medicine

AI is playing a critical role in advancing personalized medicine by analyzing patient-specific data to develop targeted therapies. The ability to process vast datasets from genomics, proteomics, and patient health records allows AI models to identify personalized treatment options tailored to individual patient profiles. This growing focus on precision medicine is driving demand for AI-enabled drug discovery solutions, as healthcare providers and pharmaceutical companies aim to deliver more effective, patient-centric treatments. The increasing incidence of chronic diseases and rare conditions further accelerates the adoption of AI-driven personalized medicine approaches.

Where are the Market Opportunities?

Geographic Expansion into Emerging Markets

Developing regions across Asia-Pacific, Latin America, and the Middle East offer substantial expansion prospects for AI-driven drug discovery and clinical trials. Factors such as rising healthcare investments, evolving regulatory policies, and a growing demand for cutting-edge treatments are fueling the adoption of advanced drug development technologies. AI technology can help companies navigate diverse patient populations, improve access to clinical trials, and develop treatments tailored to regional health challenges. This expansion allows AI providers to capture new revenue streams while addressing the growing demand for advanced medical solutions in these rapidly evolving regions.

Advancing Drug Discovery with AI Integration

AI-driven technologies are revolutionizing drug discovery and clinical trials by accelerating target identification, optimizing molecule screening, and enhancing patient recruitment. These innovations significantly reduce development costs and timelines while improving trial efficiency. The growing adoption of AI in pharmaceutical research, coupled with increasing R&D investments and regulatory support, is driving market expansion. Additionally, AI-powered drug repurposing and personalized medicine solutions are opening new avenues for therapeutic advancements, positioning AI as a transformative force in the industry.

Competitive Landscape

The major players operating in the AI-Enabled Drug Discovery and Clinical Trials market are AiCure, Aitia, Atomwise Inc., BenevolentAI, Insilico Medicine, PathAI, Inc., Recursion, Saama Technologies, Schrödinger, Inc., Tempus, and Unlearn.ai, Inc. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.

Recent Developments

• On 27^th February 2025, at a conference in India, executives from leading pharmaceutical firms, including Amgen and Parexel, highlighted their advancements in AI-driven drug development. Parexel, for example, is testing an AI model aimed at accelerating the generation of drug safety reports. However, discussions also centred around uncertainties stemming from potential U.S. tariffs on pharmaceutical imports, leading Indian drug manufacturers to take a more cautious stance.
• On 20^th February 2025, Insilico Medicine announced a collaboration with Harbour BioMed to fast-track the discovery and development of novel therapeutic antibodies. This partnership leverages Harbour BioMed’s expertise in antibody research alongside Insilico’s AI-driven capabilities to enhance drug innovation.

Notes for Editors

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