The artificial intelligence (AI) in drug discovery market focuses on using AI technologies to accelerate and enhance the process of discovering new drugs. AI helps researchers identify potential drug candidates, analyze complex biological data, and predict how compounds will interact with targets in the body. This significantly reduces the time and cost traditionally involved in drug development. The market is rapidly growing due to rising R&D costs, increasing demand for personalized medicine, and advancements in AI algorithms. Pharmaceutical companies and biotech firms are increasingly partnering with AI companies to improve drug discovery efficiency and success rates.
According to Fortune Business Insights, the global artificial intelligence (AI) in drug discovery market 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 November 2022, Cyclica received a grant of USD 1.8 million from the Bill & Melinda Gates Foundation. The funding supports Cyclica’s AI‑enabled drug discovery platform to discover novel non‑hormonal contraceptives, leveraging multiple low‑data biological targets. This landmark development underscores the role of AI in addressing global health goals.
The increasing burden of chronic diseases such as cancer, cardiovascular conditions, and metabolic disorders fuels demand for AI‑based drug discovery solutions. The pharmaceutical industry’s relentless focus on reducing time‑to‑market and development costs is a pivotal driver. AI enables rapid identification of hit and lead compounds, accelerates target validation, and optimizes molecular design—thereby improving efficiency and predictability in drug pipelines.