Artificial Intelligence In Drug Discovery Market To Reach $13.7 Billion By 2033

Artificial Intelligence In Drug Discovery Market Growth & Trends

The global artificial intelligence in drug discovery market size is expected to reach USD 13.7 billion by 2033, registering a CAGR of 24.8% from 2026 to 2033, according to a new report by Grand View Research, Inc. The pandemic has made the adoption of AI more widespread in the pharma industry. AI and its related platforms aim to enhance medical imaging and diagnostics, management of chronic diseases, and drug designing. The overall human hours spent would be far more in comparison to the AI system scanning the same data, which reduces overall cost and is a more feasible approach.

The drug optimization and repurposing application segment held the largest revenue share in 2022. AI platforms help in the identification of target proteins for drugs to determine adverse events and possible side effects the drug can have. Drug molecules can be repurposed to make them more effective and with minimum side effects. Portfolio drugs for a company can be altered and studied using AI platforms at a much faster pace so as to hasten new drug development.

The oncology therapeutic area segment accounted for the largest revenue share in 2022. The majority of the pharmaceutical companies are pairing up with AI start-ups to optimize their cancer research, which is still an unchartered territory and there is a lot to be discovered. AI systems can identify cancer much earlier than a regular scan would indicate to even a thoroughly trained radiologist. This, in turn, can increase life expectancy and can also help identify markers to be studied for cancer research and drug development. Patients can be prescribed treatments suited to their genetic composition.

North America dominated the market in 2022. Many tech companies are now investing their money and efforts toward the use of AI in pharmaceutical companies. Companies like IBM, Microsoft, and other tech giants have formed collaborations with research institutes for faster drug development and clinical trials for multiple indications. Developing countries are also finding cost-effective measures to implement AI technology for their drug development and disease understanding.

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Artificial Intelligence In Drug Discovery Market Report Highlights

• The drug optimization and repurposing segment led the market with the largest revenue share of 52.46% in 2025. The rising demand for cost-effective drug development strategies substantially drives the segment’s growth.

• The oncology segment led the market with the largest revenue share of 24.38% in 2025. Artificial intelligence (AI) in oncology facilitates the identification of novel cancer targets and biomarkers by applying machine learning to genomic and transcriptomic tumor data.

• The pharmaceutical & biotechnology companies segment led the market with the largest revenue share of 59.19% in 2025. In addition, this segment is anticipated to grow at the fastest CAGR during the forecast period.

• North America dominated the global artificial intelligence in drug discovery market with the largest revenue share of 52.85% in 2025. The market is driven by substantial R&D investments from pharmaceutical and biotechnology firms, coupled with robust venture capital funding for AI-driven drug discovery startups.

Artificial Intelligence In Drug Discovery Market Segmentation

Grand View Research has segmented the global artificial intelligence in drug discovery market on the basis of application, therapeutic area, end use, and region:

Artificial Intelligence In Drug Discovery Application Outlook (Revenue, USD Million, 2021 - 2033)

• Drug optimization and repurposing

• Preclinical testing

• Others

Artificial Intelligence In Drug Discovery Therapeutic Area Outlook (Revenue, USD Million, 2021 - 2033)

• Oncology

• Neurodegenerative Diseases

• Cardiovascular Disease

• Metabolic Diseases

• Infectious Disease

• Others

Artificial Intelligence In Drug Discovery End Use Outlook (Revenue, USD Million, 2021 - 2033)

• Pharmaceutical & Biotechnology Companies

• Contract Research Organizations (CROs)

• Academic & Research Institutes

• Others

Artificial Intelligence In Drug Discovery Regional Outlook (Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • Denmark

  • Sweden

  • Norway

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Thailand

• Latin America

  • Brazil

  • Argentina

• MEA

  • South Africa

  • Saudi Arabia

  • UAE

  • Kuwait

List of Key Players in the Artificial Intelligence In Drug Discovery Market

• Healx

• BostonGene Corporation

• BenevolentAI

• Innophore

• Delta4.ai

• BioXcel Therapeutics Inc.

• BullFrog AI Holdings, Inc.

• Graphwise

• Owkin, Inc

• Insilico Medicine

• IBM

• Exscientia

• Google (DeepMind)

• BioSymetrics, Inc.

• BPGbio Inc. (Berg Health)

• Atomwise Inc.

• Recursion

• Aitia

• insitro