CEO speaks: India’s AI-Powered Pharma Revolution: The Next Big Wave in Healthcare
A digital revolution is sweeping through the pharmaceutical industry, and it’s powered by artificial intelligence (AI). From automating drug discovery to making clinical trials more efficient and driving breakthroughs in biotechnology, AI is reshaping the healthcare landscape. And India, long known as the ‘pharmacy of the world, is positioning itself to ride this wave of innovation, as it should!
India’s pharmaceutical sector has always been a global heavyweight. As the world’s third-largest producer of drugs by volume, it has historically focused on affordable generics. But now, with the infusion of AI-driven capabilities, the industry is shifting gears—becoming a hub of R&D, innovation, and precision medicine. As per a EY-Pantheon and Microsoft report that tracked the sector, AI market in pharmaceuticals is projected to hit USD16.49 billion by 2034 and AI-driven medical devices are set to grow to USD97.07 billion globally by 2028. India must move quickly and decisively to gain the necessary advantage and leverage.
Major Indian pharmaceutical firms such as Sun Pharma, Dr Reddy’s Laboratories, and Cipla are investing heavily in AI technologies. Their goal: reduce the spiralling costs and timeframes associated with developing new drugs, and leapfrog into the realm of novel therapeutics. Meanwhile, India’s homegrown AI startups are gaining momentum by offering specialised solutions across the pharma value chain. Companies like Qure.ai, Indegene, and AIRA Matrix are helping digitise diagnostics, streamline clinical trial processes, and ensure regulatory compliance through advanced analytics and automation.
Qure.ai, for example, has developed deep learning algorithms capable of interpreting complex medical images like X-rays and CT scans. These tools are not only helping doctors make faster and more accurate diagnoses but are also being integrated into clinical trial pipelines to identify suitable patient cohorts. Indegene, on the other hand, supports pharma companies in managing large datasets and enhancing patient engagement using AI-powered systems—bringing a new level of precision to the business side of medicine.
But the most profound change is perhaps in drug discovery. Developing a new drug is notoriously slow, expensive, and failure prone. In India, this has been further complicated by limited infrastructure and high development costs. AI is now tackling these problems head-on. By analysing vast chemical libraries, simulating molecular interactions, and identifying promising candidates early in the process, AI algorithms are saving development timelines and substantially improving success rates. What once took a decade can now be done in months.
This AI-driven transformation is allowing Indian companies to move beyond their traditional role of manufacturing generics and into the high-stakes world of original drug development. It’s not just about cost-effectiveness anymore; it’s about discovery and innovation.
Clinical trials, a longstanding bottleneck, are also undergoing a dramatic overhaul. India’s diversity and scale make it an attractive site for global trials, but enrollment challenges, regulatory issues, and logistical constraints have held it back. AI tools are now being deployed to identify ideal patient populations, optimise site selection, and even remotely monitor patient health through wearable technologies and mobile apps. These innovations proved invaluable during the Covid-19 pandemic and are becoming permanent fixtures of modern trial design. This smarter, tech-enabled clinical trial ecosystem is not just improving efficiency; it’s enhancing inclusivity. AI-driven data analysis enables the representation of broader demographic profiles in trials—an important step toward equitable healthcare outcomes.
Simultaneously, AI is accelerating the biotech boom in India. Startups and research institutions are applying machine learning to genomics, synthetic biology, and precision medicine. Organisations like Strand Life Sciences and institutions under the CSIR and IIT umbrella are leading efforts to decode genomic data and personalise treatments for conditions ranging from diabetes to rare genetic disorders.
This synergy between AI and biotech is ushering in a new model of healthcare—one that is predictive, preventive, and personalised. It’s a vision where doctors can anticipate disease risks based on genetic profiles and tailor treatments down to the individual level. And with India’s population-scale data and growing digital infrastructure, the country has a unique opportunity to lead in these efforts.
Admittedly, this future isn’t without its hurdles. Smaller pharma firms often lack the digitisation and data maturity required to harness AI effectively. Data privacy remains a concern, and the need for clear regulatory frameworks is pressing. But initiatives like the National Digital Health Mission (NDHM) and Startup India are beginning to lay the foundation for a more digitally connected and innovation-friendly ecosystem.
The opportunity before India is enormous. The global demand for faster, cheaper, and more personalised healthcare is rising. If India can combine its pharmaceutical manufacturing muscle with cutting-edge AI, it could not only capture a large share of the projected $16.5 billion global market but also become a leader in solving some of the world’s toughest health challenges!
In the coming decade, the convergence of AI and pharma will redefine how we discover drugs, treat patients, and manage healthcare systems. India is not merely witnessing this revolution—it is helping to drive it. What was once a generics powerhouse is now transforming into an innovation engine, ready to shape the future of medicine!
The author is the Group CEO of Techno India Group, a visionary and an educator. Beyond his corporate role, he is also a mentor who guides students towards resilience and self-discovery
