| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 2.58 Billion |
| Market Size (2030) | USD 8.18 Billion |
| CAGR (2025 - 2030) | 25.94 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
AI in Drug Discovery Market Analysis
The Artificial Intelligence In Drug Discovery Market size is estimated at USD 2.58 billion in 2025, and is expected to reach USD 8.18 billion by 2030, at a CAGR of 25.94% during the forecast period (2025-2030).
The integration of artificial intelligence (AI) into the drug discovery process has emerged as a transformative approach in the pharmaceutical industry. The increasing demand for innovative therapies to address unmet medical needs has driven pharmaceutical companies to adopt artificial intelligence technologies to advance the drug discovery process. Strategic collaborations between pharmaceutical firms and AI technology providers are fostering innovation, attracting significant investments, and expediting drug discovery through advanced tools like molecular modeling and compound screening. The global prevalence of chronic and infectious diseases, such as cancer, COPD, asthma, diabetes, and cardiovascular diseases, has heightened the need for advanced treatments, which are expected to drive market growth over the forecast period.
Pharmaceutical companies are increasingly partnering with artificial intelligence (AI) firms to leverage their drug discovery processes, fueling significant market growth. For instance, in February 2025, Incyte, a biopharmaceutical firm from the United States, teamed up with Genesis Therapeutics, a company harnessing artificial intelligence for drug discovery. Their collaboration aims to utilize Genesis' GEMS AI platform, focusing on unveiling innovative small molecule therapeutics targeting specific areas chosen by Incyte. Such collaborations emphasize the growing role of artificial intelligence in enhancing efficiency and innovation in drug discovery, driving market growth in the forecast period.
Moreover, in January 2024, Servier, an international pharmaceutical group, extended its five-year collaboration with Google Cloud. Harnessing the power of artificial intelligence (AI) and generative AI to fast-track its research and development efforts, Servier can swiftly analyze vast amounts of medical data, allowing researchers and clinicians to pinpoint therapeutic targets more efficiently. With AI at its helm, Servier is poised to expedite the creation of tailored therapeutic solutions. This collaboration underscores AI's growing role in revolutionizing drug discovery and, therefore, is likely to propel market growth over the forecast period.
The rising cases of chronic diseases, including cancer, diabetes, and heart disease, create a need for rapid and efficient drug discovery. Artificial intelligence accelerates this process through biomedical data analysis, drug candidate identification, and clinical trial optimization. With growing health challenges, pharmaceutical companies leverage artificial intelligence to reduce costs and improve success rates, driving its adoption in the market. For instance, in January 2025, the British Heart Foundation reported that over 7.6 million individuals were living with heart or circulatory diseases in the United Kingdom in 2024, with men accounting for over 4 million cases compared to 3.6 million in women. The high burden of cancer and cardiovascular diseases underscores the urgent need for innovative therapies. Integrating artificial intelligence in drug discovery is crucial for addressing the growing demand for novel drugs to treat these diseases. Consequently, the increasing chronic disease burden is anticipated to drive the adoption of artificial intelligence in drug discovery, advancing the market in the coming years.
Therefore, the above mentioned factors like rising collaboration between pharma and AI companies for drug discovery and rising prevalence of chronic and infectious diseases is expected to boost the market growth in the coming years. However, the budget constraints and the errors associated with data management and standardization is likely to restrain the market growth over the forecast period.
AI in Drug Discovery Market Trends
The Oncology Segment is Expected to Witness Significant Growth Over the Forecast Period
Cancer is a highly complex disease with various subtypes and genetic mutations. The rising prevalence of cancer worldwide demands increased research and development of anti-cancer drugs. AI is an excellent tool for identifying patterns and potential drug targets for complex diseases like cancer. This further contributes to the growth of this segment in the market. AI expedites the drug discovery of anti-cancer drugs with machine learning and deep learning algorithms. Deep learning is highly flexible in designing de novo molecular structures of the drug candidates and predicting their reactions. This helps to discover potential novel anti-cancer drugs and targets. Additionally, the advances of AI in the drug discovery process of cancer are expected to drive the growth of the studied segment.
The increased prevalence of cancer worldwide is the crucial factor that drives the demand for drug discovery of anti-cancer drugs using AI tools, further driving the market’s segment. For instance, in January 2025, the American Cancer Society projected that the United States would witness 2.04 million new cancer cases in 2025, up from 2.0 million cases in 2024. This projects the need for drugs for cancer treatment. The need for innovative oncology drugs remains high, leading to a consistent demand for drug discovery in this therapeutic area. The acceleration of the drug development process offered through AI further expands the segment’s growth.
Moreover, strategic collaborations between AI-powered biopharma companies and research institutions are significantly contributing to advancements in oncology drug discovery through artificial intelligence. For instance, in October 2024, BPGbio, Inc., an AI-driven biopharmaceutical firm, partnered with the University of Oxford's Centre for Medicines Discovery. This five-year collaboration aims to enhance protein degradation technologies targeting oncology and central nervous system disorders. By combining Oxford’s expertise in translational research with BPGbio’s AI integrated NAi Interrogative Biology Platform, the collaboration seeks to unlock new therapeutic pathways for oncological conditions with limited treatment options. This initiative highlights the role of artificial intelligence in accelerating oncology drug discovery, reinforcing its importance in the market.
Additionally, several articles have commented on the advancements of AI in anti-cancer drug designs. For instance, according to an article published in the Pharmaceuticals (Basel) Journal in February 2023, artificial intelligence has emerged as a powerful and promising technology for faster, cheaper, and more effective anti-cancer drug designs. The utilization of artificial intelligence-based methods in anti-cancer drug designing is expected to add to the segment's growth in the forecast period.
Hence, the increasing prevalence of cancer, strategic collaborations, and the growing adoption of AI technologies in cancer drug discovery are are anticipated to fuel significant segment expansion in the coming years.
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North America is Expected to Dominate the Artificial Intelligence in Drug Discovery Market
North America is expected to dominate the market owing to factors such as the increasing integration and adoption of AI technologies in drug discovery processes, the growing significant R&D investments, and the growing focus on enhanced research efficiency.
The integration of artificial intelligence (AI) in drug discovery is revolutionizing the pharmaceutical industry in the United States, driving innovation and operational efficiency. For instance, in April 2025, Mount Sinai's Icahn School of Medicine launched the AI Small Molecule Drug Discovery Center to transform drug development processes. The center leverages generative AI to design novel drug-like molecules, optimize existing compounds, and predict drug-target interactions. By utilizing AI, researchers can efficiently navigate a vast chemical landscape, identify promising drug candidates, and significantly reduce the time required for experimental research. The center focuses on addressing critical healthcare needs, targeting diseases such as cancer, metabolic disorders, and neurodegenerative conditions. This initiative highlights the increasing adoption of AI in tackling urgent healthcare challenges and accelerating the development of innovative treatments in the United States.
Additionally, the United States is home to major research and innovation hubs. These hubs drive the advancements in AI for drug discovery, contributing to the growth of the market in the region. For instance, according to an article published in the Heliyon Journal in July 2023, the United States is the pioneer and dominant country in AI implementation. It also mentioned that the United States hosts more than half of the world's AI companies for drug discovery businesses. The country's adoption of AI-based solutions for drug discovery is vivid, further contributing to the market’s growth in this region.
Moreover, the rise in funding secured by the key players in the market gives them the opportunity to bring in innovation with respect to the drug discovery processes. Therefore, it is likely to contribute to the growth of the region in the coming years. For instance, in February 2025, Variational AI, a Canada-based software company, successfully raised USD 5.5 million in an oversubscribed seed extension round. The company’s advanced foundation model, Enki, is designed to revolutionize small molecule drug discovery by enabling biopharmaceutical chemistry teams to identify and optimize novel hits and leads efficiently. These investment opportunities are likely to propel North America market growth during the forecast period.
Therefore, owing to the factors mentioned above, such as increasing integration and adoption of AI technologies, the growth of the studied market is anticipated in the North American region.
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AI in Drug Discovery Industry Overview
The artificial intelligence market in drug discovery is fragmented due to the presence of a large number of companies operating globally and regionally. Key players in the market include both international giants and local firms, with notable names such as Microsoft, IBM, Recursion Pharmaceuticals (operating as Exscientia), Aitia, and Alphabet's Isomorphic Labs.
AI in Drug Discovery Market Leaders
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Microsoft
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IBM
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Recursion Pharmaceuticals, Inc. (Exscientia)
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Aitia
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Alphabet Inc. (Isomorphic Labs)
- *Disclaimer: Major Players sorted in no particular order
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AI in Drug Discovery Market News
- January 2025: PathAI, Inc. entered a strategic partnership with Discovery Life Sciences, a prominent provider of biospecimens and specialty lab testing services. This collaboration aims to deliver Discovery’s customers enhanced AI-enabled digital and quantitative insights from biospecimens, supporting advancements in drug and diagnostic development. The partnership represents a significant milestone as the first large-scale deployment of AI technologies within a leading commercial biobank. Discovery will integrate PathAI’s AISight Image Management System (IMS), ArtifactDetect, and TumorDetect products globally across its biospecimens business.
- February 2024: 1910 Genetics, a biotechnology company specializing in AI-driven drug discovery, entered a five-year commercial agreement with Microsoft. The collaboration integrated 1910 Genetics' computational and biological data, robotics-driven lab automation, and AI models with Microsoft's Azure Quantum Elements High-Performance Computing (HPC) platform. This partnership aims to address declining pharmaceutical R&D productivity by providing researchers with an advanced cloud platform to accelerate scientific discovery.
AI in Drug Discovery Industry Segmentation
As per the report's scope, artificial intelligence (AI) is used in drug discovery through the analysis of the vast amounts of data collected from drug discovery research and clinical studies. Drug discovery is a process aimed at identifying a compound that is therapeutically useful in treating and curing diseases.
The artificial intelligence in drug discovery market is segmented into component type, application type, therapeutic area, and geography. By component type, the market is segmented into software and services. By application type, the market is segmented into preclinical testing, drug optimization and repurposing, target identification, candidate screening, and others. The other applications include de novo drug designing, prediction of bioactivity, and prediction of toxicity. By therapeutic areas, the market is segmented into oncology, neurodegenerative diseases, cardiovascular diseases, metabolic diseases, rare diseases, infectious diseases, genetic diseases, and others. The other therapeutic areas include immunology and mental health disorders, among others. By geography, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America. For each segment, the market sizing and forecasts have been done on the basis of value (in USD).
| By Component Type | Software | ||
| Services | |||
| By Application Type | Preclinical Testing | ||
| Drug Optimization and Repurposing | |||
| Target Identification | |||
| Candidate Screening | |||
| Others (De novo Drug Designing, Prediction of Bioactivity, and Prediction of Toxicity) | |||
| By Therapeutic Area | Oncology | ||
| Neurodegenerative Diseases | |||
| Cardiovascular Diseases | |||
| Metabolic Diseases | |||
| Rare Diseases | |||
| Infectious Diseases | |||
| Genetic Diseases | |||
| Others (Immunology and Mental Health Disorders, among others) | |||
| Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia Pacific | China | ||
| Japan | |||
| India | |||
| Australia | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | GCC | ||
| South Africa | |||
| Rest of Middle East and Africa | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
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Artificial Intelligence In Drug Discovery Market Research Faqs
How big is the Artificial Intelligence In Drug Discovery Market?
The Artificial Intelligence In Drug Discovery Market size is expected to reach USD 2.58 billion in 2025 and grow at a CAGR of 25.94% to reach USD 8.18 billion by 2030.
What is the current Artificial Intelligence In Drug Discovery Market size?
In 2025, the Artificial Intelligence In Drug Discovery Market size is expected to reach USD 2.58 billion.
Who are the key players in Artificial Intelligence In Drug Discovery Market?
Microsoft, IBM, Recursion Pharmaceuticals, Inc. (Exscientia), Aitia and Alphabet Inc. (Isomorphic Labs) are the major companies operating in the Artificial Intelligence In Drug Discovery Market.
Which is the fastest growing region in Artificial Intelligence In Drug Discovery Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Artificial Intelligence In Drug Discovery Market?
In 2025, the North America accounts for the largest market share in Artificial Intelligence In Drug Discovery Market.
What years does this Artificial Intelligence In Drug Discovery Market cover, and what was the market size in 2024?
In 2024, the Artificial Intelligence In Drug Discovery Market size was estimated at USD 1.91 billion. The report covers the Artificial Intelligence In Drug Discovery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Artificial Intelligence In Drug Discovery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Artificial Intelligence In Drug Discovery Industry Report
Statistics for the 2025 Artificial Intelligence In Drug Discovery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Artificial Intelligence In Drug Discovery analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
