1 Department of Pharmaceutical Regulatory Affairs, JKKMRF College of Pharmacy, Nammakkal
2 Vidya Siri College of Pharmacy, Bengaluru
Artificial intelligence (AI) is transforming traditional drug development by enabling faster, cost-effective, and more accurate discovery processes. AI-based technologies such as machine learning, deep learning, and predictive modelling help identify drug targets, screen compounds, and optimize lead molecules with greater precision. By analysing large datasets and uncovering patterns often missed by conventional methods, AI minimizes research timelines, reduces development failures, and improves decision-making across preclinical and clinical stages. This review summarizes the major applications, benefits, and future potential of AI in modern drug discovery and development.
Artificial intelligence has emerged as a powerful tool across scientific and healthcare fields, offering new solutions to long-standing challenges in pharmaceutical research. Drug development is traditionally expensive, slow, and resource-intensive, but AI helps overcome these limitations by processing vast biological and chemical datasets with speed and accuracy. Techniques such as machine learning and deep learning support target identification, compound screening, and predictive modelling. By integrating AI into the drug discovery pipeline, the pharmaceutical industry can reduce costs, shorten timelines, and improve success rates.
1. Drug Discovery
The first step in drug discovery is identifying the biological target—usually a protein, enzyme, receptor, or nucleic acid—that plays a vital role in disease development. An ideal target should be druggable, meaning it can bind selectively with a therapeutic molecule, and disease-modifying, meaning its modulation leads to a clinically beneficial effect [1]. Target identification strategies include:
Genome-wide association studies (GWAS) and proteomic profiling to identify disease-linked biomolecules [2].
Validated targets reduce the risk of late-stage drug development failure and guide the design of screening assays.
Once a target is validated, researchers focus on identifying “hits”—compounds with measurable activity against the target. Hit Identification Methods include:
Hit-to-Lead (H2L) Optimization refines hits to improve potency, selectivity, pharmacokinetics (ADME), and safety. Structure–Activity Relationship (SAR) studies guide chemical modifications. Lead Optimization further enhances drug-like properties, such as oral bioavailability, metabolic stability, and target specificity, while reducing toxicity [7].
1.3 Use of Machine Learning (ML) and Deep Learning in Compound Screening
The integration of AI technologies into drug discovery has revolutionized compound screening by improving hit identification accuracy, reducing experimental workload, and accelerating timelines.
1.4 Applications in Compound Screening:
By combining experimental screening with AI-driven predictions, pharmaceutical companies can drastically reduce attrition rates and resource expenditure in the early stages of drug discovery.
2. Preclinical Studies: Toxicity Prediction and ADMET Evaluation
Preclinical studies bridge the gap between laboratory drug discovery and clinical trials. They aim to establish a compound’s safety profile, biological activity, and pharmacological characteristics before administration to humans [12]. These studies are conducted in vitro (cell lines, biochemical assays) and in vivo (animal models) under Good Laboratory Practice (GLP) guidelines. The objectives of preclinical studies include:
2.1 Toxicity Prediction
Toxicity prediction is critical for reducing late-stage failures and minimizing risks to trial participants. Traditionally, toxicity is evaluated using animal models, but recent advances integrate computational toxicology and in silico modelling for early hazard identification. Approaches to Toxicity Prediction:
2.2 ADMET Evaluation
ADMET stands for Absorption, Distribution, Metabolism, Excretion, and Toxicity — critical parameters for determining a drug’s suitability for clinical use [15]
2.3 Regulatory Relevance
Regulatory agencies require a comprehensive preclinical dossier in the Investigational New Drug (IND) submission, detailing all toxicity and ADMET findings. Early integration of predictive toxicology reduces attrition rates, shortens timelines, and improves safety in first-in-human trials.
3. Clinical Trials: AI-Driven Innovation
Clinical trials represent one of the most critical and resource-intensive stages of drug development, often accounting for nearly 60–70% of the total research and development (R&D) cost. Despite their importance, trials face persistent challenges such as delayed patient recruitment, poor retention, high costs, and unanticipated adverse events. The integration of artificial intelligence (AI) into clinical research is transforming the way trials are designed, executed, and monitored, ultimately leading to faster, safer, and more efficient pathways from laboratory to patient care.
3.1 Patient Recruitment Optimization
Recruitment is widely regarded as the primary bottleneck in clinical trials. Studies suggest that up to 80% of clinical trials fail to meet their enrolment timelines, often delaying regulatory submissions and market entry. AI systems utilize electronic health records (EHRs), genomic databases, and even social media to identify eligible participants more effectively. Natural language processing (NLP) tools are particularly valuable, as they can analyse unstructured clinical notes and automatically match patients to eligibility criteria. Predictive analytics can also forecast potential dropouts, enabling investigators to intervene early with patient engagement strategies. This not only accelerates trial initiation but also enhances diversity in enrolment, ensuring that underrepresented populations are not excluded from pivotal studies [17,18].
3.2 Trial Design and Simulation
Traditional trial design relies heavily on historical data and expert assumptions, which can be limited and prone to bias. AI introduces data-driven trial design by simulating thousands of potential trial scenarios before real-world implementation. Machine learning algorithms analyse past trial outcomes to optimize inclusion/exclusion criteria, determine appropriate sample sizes, and identify the most relevant clinical endpoints. Emerging technologies such as digital twins—virtual patient models that mimic human physiology—allow researchers to simulate drug responses in silico, significantly reducing reliance on physical trial participants in early stages. These innovations can reduce trial failures, save costs, and accelerate regulatory decision-making [19,20].
3.3 Monitoring Adverse Effects
Ensuring patient safety during clinical trials is paramount. AI-enabled monitoring systems leverage data streams from wearable devices, smartphone applications, and digital biomarkers to provide real-time health tracking. These tools continuously evaluate patient vital signs, drug responses, and lifestyle factors. Advanced anomaly detection models can identify subtle physiological changes that may signal the onset of an adverse drug reaction well before traditional clinical assessments would detect them. Furthermore, AI-driven pharmacovigilance tools automate the reporting and analysis of adverse events, facilitating timely interventions and improving overall safety management during clinical studies [21,22].
In sum, AI-driven recruitment, trial simulation, and safety monitoring are revolutionizing clinical research. By reducing inefficiencies and improving patient outcomes, AI is paving the way for a new era of smarter, faster, and safer clinical trials.
4. Post-Marketing Surveillance (Pharmacovigilance)
Post-marketing surveillance (PMS), or pharmacovigilance, is an indispensable component of the drug development life cycle. While clinical trials are carefully designed, they often include only a few thousand participants under controlled conditions. This limits the detection of rare adverse drug reactions (ADRs), long-term side effects, and interactions in special populations such as children, pregnant women, or elderly patients. Once a drug is approved, it enters real-world environments where millions of patients may be exposed—making continuous safety monitoring essential.
The global scale of pharmacovigilance generates an enormous volume of heterogeneous data from diverse sources, including spontaneous reporting systems, electronic health records (EHRs), insurance claims, clinical notes, scientific literature, wearable devices, and even patient-generated content from social media. AI offers the ability to integrate, clean, and analyse these complex datasets to generate timely, reliable safety insights.
4.1 Signal Detection
Signal detection refers to the identification of new, unexpected, or rare associations between drugs and adverse effects. Traditional methods—such as disproportionality analysis in spontaneous reporting systems—are valuable but limited by under-reporting (only 5–10% of ADRs are typically reported), delays in reporting, and difficulty distinguishing true signals from noise.
AI-driven models overcome these limitations by:
By combining traditional statistical methods with AI-driven insights, pharmacovigilance is evolving into a proactive system rather than a reactive one.
4.2 Real-World Data Analytics
Real-world data (RWD) provides a more complete picture of drug safety and effectiveness across diverse populations. Unlike clinical trials, which may exclude patients with comorbidities or polypharmacy, RWD reflects actual usage in broader and more complex healthcare settings.
AI enhances the utility of RWD in several ways:
Such analytics not only protect patient safety but also provide evidence for regulatory actions such as label modifications, usage restrictions, or—when necessary—drug withdrawal.
4.3 Regulatory Integration
Regulatory bodies such as the U.S. FDA and the European Medicines Agency (EMA) are increasingly adopting AI-driven tools to enhance post-marketing safety surveillance. For example, the FDA Sentinel Initiative integrates data from over 100 million patients to identify and evaluate safety signals in near real time [24]. AI applications allow regulators to move from passive surveillance systems to active monitoring frameworks that continuously analyse patient safety.
4.4 Broader Impact
AI in pharmacovigilance represents a paradigm shift:
Ultimately, AI-driven pharmacovigilance reduces patient risk, enhances regulatory confidence, and contributes to safer healthcare ecosystems worldwide.
5. Applications of AI Tools & Technologies
The practical applications of artificial intelligence (AI) in drug development are diverse and span the entire pipeline, from early discovery to post-market surveillance. Multiple AI approaches—including machine learning (ML), deep learning (DL), natural language processing (NLP), and neural networks—have been successfully deployed to accelerate timelines, reduce costs, and improve decision-making in pharmaceutical research. The adoption of specialized AI platforms such as IBM Watson, AlphaFold, and Benevolent AI further illustrates how these tools are transforming traditional research models into data-driven, intelligent systems.
5.1 Machine Learning (ML)
Machine learning algorithms form the backbone of AI in drug discovery and development. By training on large-scale biomedical datasets, ML models can:
ML-based quantitative structure–activity relationship (QSAR) models have been widely applied in toxicity prediction and ADMET assessment, demonstrating significant improvements over traditional statistical methods [1].
5.2 Deep Learning (DL)
Deep learning, a subset of ML, leverages neural network architectures with multiple layers to capture complex, non-linear patterns in data. DL has shown particular success in:
Notably, DL-powered platforms have already generated drug candidates that progressed into clinical trials, highlighting its translational value.
5.3 Natural Language Processing (NLP)
The biomedical literature grows exponentially, making it difficult for researchers to keep pace. NLP tools extract meaningful information from unstructured text sources, including:
AI-driven NLP systems are particularly valuable in pharmacovigilance, where rapid information extraction from text-based reports reduces manual workload.
5.4 Neural Networks
Neural networks (NNs) mimic the architecture of the human brain and are particularly suited for modelling complex, multi-dimensional biomedical data. Beyond deep learning, NNs are applied in:
Bayesian neural networks also support uncertainty quantification in predictions, which is crucial in high-stakes applications such as toxicity forecasting [5].
5.5 Real-World Examples of AI Platforms
6. Case Studies and Success Stories in AI-Driven Drug Discovery
6.1 AI Success in Drug Repurposing: The COVID-19 Example
The COVID-19 pandemic accelerated the application of artificial intelligence (AI) in identifying repurposable drugs with potential antiviral activity. AI algorithms analysed large-scale biomedical datasets—such as gene expression profiles, molecular docking simulations, and chemical structure libraries—to pinpoint compounds capable of inhibiting SARS-CoV-2 replication.
A notable example is Baricitinib, originally approved for rheumatoid arthritis, which was repurposed for COVID-19 using machine learning–based network pharmacology. Researchers at Benevolent AI applied graph-based reasoning and literature mining to predict that Baricitinib could block viral entry by inhibiting AAK1 and GAK kinases, crucial for viral endocytosis. This computational prediction was experimentally validated and led to rapid inclusion in global clinical trials and subsequent FDA Emergency Use Authorization (EUA) for hospitalized COVID-19 patients [25].
Similarly, Remdesivir and Favipiravir were identified through AI-assisted in silico screening platforms integrating molecular docking, QSAR modelling, and high-throughput simulations, reducing discovery time dramatically compared to traditional methods [26].
AI repurposing tools such as DeepChem, Pharm AI, and COVID-19 Knowledge Graphs demonstrated how deep learning can uncover novel target–compound relationships hidden within existing pharmacological datasets. These efforts not only shortened the drug discovery cycle from years to weeks but also offered a blueprint for future pandemic response strategies.
6.2 AI-Assisted Drugs That Reached Clinical Trials or Approval
AI has progressed from repurposing to de novo design. This led to innovative molecules for drugs that proceeded to trials.
(1) DSP-1181 (Ex Scientia & Sumitomo D
This was the first molecule designed with the aid of AI, making its entry into human clinical trials in the year 2020 as a 5-HT1A receptor antagonist for the treatment of obsessive-compulsive disorder (OCD). Ex Scientia’s deep learning techniques enabled the company to achieve potency, selectivity, and pharmacokinetic profiles for DSP-1181 in 12 months, which would take 4-5 years conventionally.
(2) ISM001-055
ISM001-055 was developed by the use of deep generative learning based on molecular docking and reinforcement learning and is focused on being an anti-fibrotic drug undergoing Phase I clinical trials by 2021. Using Insilico's AI system, target identification and nomination of a drug to clinical trials took under 18 months [28]. This marked the first fully AI-discovered drug to enter human clinical trials
(3) BEN-2293 (Benevolent AI)
BEN-2293 was developed for atopic dermatitis. In 2023, it began Phase II trials. Benevolent AI's knowledge graphs and deep learning models combined data from genomics, proteomics, and literature to identify potential targets for inflammatory pathways to improve compound design by optimizing leads [29].
These case studies emphasize collectively that AI has a significant ability to cut down development time, expenditure, and attrition. It not only marks a transition in the application area of AI but also indicates that AI is being used not just for computation but for innovation.
7. Benefits of AI in Drug Development
Artificial intelligence (AI) is transforming traditional pharmaceutical research and development (R&D) by accelerating discovery timelines, reducing costs, and enhancing precision and efficiency across the entire drug development pipeline. By integrating computational intelligence with biological data, AI enables scientists to make data-driven decisions faster and more accurately than ever before.
7.1 Faster Timelines
AI dramatically shortens the time required for identifying drug targets, screening potential compounds, and optimizing leads. Traditional drug discovery can take 10–15 years, but AI-assisted processes can reduce early-stage discovery to under 2 years [26]
Machine learning (ML) algorithms can rapidly analyse complex datasets—such as genomics, proteomics, and cheminformatics—to predict drug–target interactions, thereby minimizing experimental trial-and-error.
For example, Ex Scientia’s DSP-1181, the first AI-designed drug to enter clinical trials, was identified and optimized in 12 months, compared to the typical 4–5 years using conventional methods (Mak & Pichika, 2019). Similarly, Insilico Medicine’s ISM001-055 progressed from target discovery to preclinical candidate nomination in just 18 months [28]. These examples highlight AI’s ability to compress discovery and preclinical stages, enabling faster transitions to clinical testing and improving the overall success rate of pharmaceutical innovation.
7.2 Cost Reduction
Drug development traditionally incurs billions of dollars in R&D expenses due to high attrition rates, prolonged testing, and redundant experimental workflows. AI mitigates these challenges by prioritizing the most promising candidates early, thereby reducing the number of failed compounds entering costly clinical phases [27]
Advanced predictive models can forecast compound toxicity, bioavailability, and ADMET (absorption, distribution, metabolism, excretion, and toxicity) profiles, eliminating unsuitable molecules before lab synthesis [30]
According to industry analyses, AI-driven approaches can potentially reduce discovery costs by up to 40–60%, primarily through automation, in silico screening, and virtual modelling [26]. AI also supports process automation in clinical trial design, patient recruitment, and pharmacovigilance, further minimizing operational costs while maintaining data accuracy and regulatory compliance [31]
7.3 Precision and Efficiency
AI brings higher precision by allowing integrations of data across various biological layers-from genomic to transcriptomic to clinical data-to offer comprehensive biological insights.
These deep learning models can identify subtle molecular patterns perhaps missed by traditional algorithms or human intuition, enabling more accurate target identification and mechanistic understanding.
In AI-powered clinical development, it enhances trial efficiency with predictive analytics for patient stratification, real-time monitoring of adverse events, and adaptive trial simulations [33]. These tools optimize study designs and ensure trials enroll the right patients at the right time under the right conditions for increased success rates and reduced dropouts.
In all, AI acts like an integrative engine: it makes the process not only faster and cheaper but also scientifically precise, hence driving the pharmaceutical industry toward a new era of evidence-based intelligent drug design.
8. Challenges and Limitations of AI in Drug Development
Although AI has great potential in the area of drug discovery, there are several significant challenges facing the integration of AI in pharmacological innovation. These challenges have to be met if one aims to ensure the use of AI in drug development meets the required standards.
8.1 Data Quality and Availability
Overreliance on artificial intelligence models is directly related to the quality of their training data. Working in drug development, the data used in models might be generated or collected from diverse sources such as preclinical models, chemical repositories, and patient data, leading to biased and incomplete data sources.
Incomplete annotation, non-standardization of formats of biological data, and errors in experimental results may result in erroneous model training and predictions [35].
Further, the data silos in pharmaceutical companies hinder access to large-scale data for the credible development of AI models since open-access, high-quality data is not available for validation and cross-validation of AI models, thus affecting scientific advancements and collaboration.
8.2 Ethical Concerns and Bias
The potential for bias exists in the datasets that the AI systems are trained on. For example, the demographics in healthcare datasets may not adequately represent the populations in question. As a result, the predictions concerning the effectiveness or safeness of a drug could be influenced by this bias [37 ].
Moreover, the “black box” problem associated with deep learning algorithms has raised concerns about transparency, as it is hard for both policymakers and healthcare providers to understand the mechanism used by certain AI algorithms in making predictions [38].
Ethical concerns also encompass issues of privacy and consent in relation to genetic information that could be mishandled. To address such matters, there is a need for the use of explainable artificial intelligence and following privacy regulations such as the General Data Protection Regulation and Health Insurance Portability and Accountability Act or HIPAA [39].
8.3 Regulatory Barriers
The scenario is still unfolding regarding adapting to AI-enabled tools used in drug discovery. This includes the initiation of frameworks offered by various governing bodies, such as the FDA in the United States, EMA, which translate to European Medicines Agency, and so forth, regarding digital health technology. However, AI guidelines regarding validation, transparency, or accountability are still unexplored [40].
The adaptive and learning abilities in the algorithms make it difficult for regulatory approval because they are able to learn and change their behaviour after they have been implemented [41]. Regulatory bodies are faced with the challenge of balancing safety and innovation in designing criteria for assessment of performance and reproducibility of algorithms.
8.4 Lack of Skilled Workforce
There is an immediate need for a multidisciplinary workforce qualified in data science, bioinformatics, pharmacology, and regulatory science for AI in pharmaceutical R&D. Unfortunately, there is an alarming scarcity of professionals who can translate between AI models and biomedically relevant interpretations globally today [42].
Thus, this talent gap is an obstacle in both the adoption and scalability of AI technology in pharma companies and in research institutions. To tackle this issue, it is essential that academic collaborations and pharma companies emphasize education in AI literacy and collaborations across domains to build a next generation of drug developers well-versed in AI.
Conclusion
At the end of the day, despite the unprecedented benefits that AI brings for speeding up the drug development process, it needs to be successfully developed in a manner that overcomes the difficulties that currently exist in the areas of data integrity, ethics, regulation, and human expertise.
9. Future Perspectives
The future of artificial intelligence in pharmacology will bring about a paradigm shift by converging the latest computational models, personalized medicine, and other fields like bioengineering and nanotechnology. This is because the pharmaceutical industry is on the route to embracing the digital transformation and will thus be shaped by the new wave of converging technologies.
9.1 Integration with Quantum Computing
The next frontier in speeding up AI-assisted drug discovery is quantum computing. Conventional computers are struggling to represent quantum mechanical calculations on a large molecular level due to the large space that needs to be processed. Quantum computing processes information using qubits, which enable simultaneous exploration of multiple molecular configurations [43].
When coupled with algorithms of Artificial Intelligence, the process of simulating protein/ligand interactions, optimization of molecular conformation, and binding affinities can be done by Quantum Computing. This has an unparalleled level of accuracy
Early studies have shown the ability of quantum machine learning algorithms in screening compounds and designing novel molecules, rendering a possible solution for the limitations of conventional in-silico simulations in drug design [45].
“As quantum hardware continues to evolve and mature, it is with AI could revolutionize computational pharmacology, enabling near-instantaneous drug candidate evaluation and reducing the discovery timeline to mere months.
9.2 Personalized and Precision Medicine
Artificial Intelligence is core to the development of Precision Medicine, which uses a unique genetic, proteomic, and clinical profile to personalize therapeutics for an individual [46].
Machine learning models are able to integrate multi-omics data, such as genomics, transcriptomics, and metabolomics, to enable the prediction of disease risks, treatment efficacies, and side effects for individual patients [47].
Machine learning models make it easier to find biomarkers, detect interactions between drugs and genes, and optimize drug doses through real-world evidence (RWE) [48]. Such personalization increases the effectiveness of treatments and reduces toxicity.
Cancer treatment, for instance, sees the use of artificial intelligence in the design of precise personalized therapeutic approaches using the analysis of genomics of tumours. With the growth of data ecosystems, the use of artificial intelligence will keep promoting a paradigm shift from development targeting populations to development that is personalized.
9.3 AI in Combination with Synthetic Biology and Nanotechnology
The integration of Artificial Intelligence with Synthetic Biology and Nanotechnology brings new possibilities with smart therapeutic agents.
In the field of synthetic biology, AI algorithms help design gene circuits, pathways, and genetically engineered microorganisms to produce valuable pharmaceuticals [49]. Deep learning models are being applied to foresee enzyme functions, biosynthetic routes, and genetic components for precision biomanufacturing [50].
On the other hand, in the field of nanotechnology, the use of AI helps in the rational design of nanocarriers according to specified physicochemical characteristics for drug delivery purposes [51]. By processing huge information sets regarding the composition of nanoparticles and biological outcomes, the potential for the biodistribution, targeting ability, and toxicity of the nanoparticles can be predicted—that is, the expedited development of next-generation nanomedicines. The collaboration between AI technology, synthetic biology, and nanotech will promote the development of intelligent therapeutic systems that are capable of detecting biological signals and delivering drugs to specified locations in space and time.
Artificial intelligence, together with advancements in synthetic biology and nanotechnology, is on the verge of unlocking new possibilities for ‘smart’ drugs.
Artificial intelligence algorithms are being employed in the design of gene circuits, metabolic paths, and biodegradation microorganisms for the production of high-value
DISCUSSION
AI is reshaping drug development by improving efficiency at every stage—from identifying therapeutic targets to designing clinical trials. Machine learning algorithms enable rapid screening of compound libraries, prediction of drug–target interactions, and optimization of lead molecules. Deep learning models enhance accuracy in toxicity prediction and pharmacokinetic analysis, reducing failures in later stages. In clinical research, AI supports patient selection, trial monitoring, and outcome prediction, ensuring more reliable results. Although challenges such as data quality, ethical concerns, and validation requirements remain, AI’s growing capabilities indicate a strong future role in accelerating and improving drug development
CONCLUSION
Artificial intelligence (AI) has become a transformative force in pharmaceutical research and development, offering novel solutions to long-standing challenges in drug discovery, preclinical testing, and clinical optimization. By leveraging vast biological datasets and advanced computational models, AI has significantly accelerated target identification, compound screening, and clinical decision-making, thereby reducing both time and cost in bringing new therapies to patients.
The integration of AI across every stage of drug development—from predictive modelling and toxicity assessment to clinical trial monitoring and post-market surveillance—demonstrates its capacity to convert data into actionable scientific insights. Moreover, the convergence of AI with quantum computing, personalized medicine, synthetic biology, and nanotechnology will further enhance its precision and scalability in the coming years.
However, the true potential of AI can only be realized through responsible and ethical implementation. Ensuring data integrity, algorithmic transparency, regulatory compliance, and a skilled interdisciplinary workforce is crucial for maintaining scientific trust and patient safety. The future of drug development lies not merely in automation, but in intelligent collaboration between human expertise and artificial intelligence.
In essence, AI represents not just a technological advancement but a paradigm shift—transforming drug development into a more efficient, ethical, and evidence-driven process that prioritizes human health above all.
REFERENCES
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