The AI in drug discovery market centers on the use of artificial intelligence technologies—such as machine learning, deep learning, and generative AI—to accelerate and enhance early-stage drug development. These tools help researchers analyze vast biomedical datasets, identify promising drug targets, optimize candidate compounds, and improve clinical trial predictions. By reducing traditional processes that often span over a decade and cost billions, AI enables faster, more cost-effective discoveries—especially in small molecule research where data are abundant. North America currently leads the market thanks to strong pharma infrastructure and investment, while Asia-Pacific is emerging rapidly due to digital health adoption and supportive policies. Key tech players and startups in the field include names like IBM Watson Health, Google DeepMind (through Isomorphic Labs), Nvidia, Exscientia, Insilico Medicine, and XtalPi. However, widespread adoption faces hurdles such as data privacy, regulatory complexity, interdisciplinary collaboration, and talent shortages.
According to Fortune Business Insights, the global artificial intelligence (AI) in drug discovery market size was valued at USD 3.00 billion in 2022 and is projected to grow from USD 3.54 billion in 2023 to USD 7.94 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 12.2% during the forecast period (2023–2030). In 2022, North America dominated the market with a 69.33% share.
In a notable industry development, in November 2022, Cyclica received a USD 1.8 million grant from the Bill & Melinda Gates Foundation. The funding supports its artificial intelligence-enabled drug discovery platform to target novel non-hormonal contraceptives, leveraging low-data biological targets to push forward innovation in difficult therapeutic areas.
The AI in drug discovery market is propelled by the urgent need to accelerate drug development pipelines, reduce costs, and improve success rates. AI adoption enables enhanced target identification, predictive modeling, and streamlined optimization, which are especially critical for the pharmaceutical and biotechnology sectors.
However, the market's expansion may be dampened by challenges including high initial investment costs, integration complexities, and regulatory hurdles that vary across jurisdictions. While the Fortune Business Insights report does not explicitly enumerate these restraints, such concerns are inherent in the high-tech, regulated healthcare ecosystem.