Photo by Mohamed Nohassi on Unsplash

An Introduction

The pharmaceutical industry is embracing AI to streamline drug discovery and development because creating a new drug using AI can help a company develop a new drug in a matter of days, in some cases, instead of the years it might take using the traditional clinical trial approach.

What is the Global AI Drug Discovery Market Size by Geographical Region?

According to Precedence Research the global AI in drug discovery market is valued at $6.93 billion in 2025 and is projected to reach $16.52 billion by 2034, growing at a CAGR of 10.10% due to increased investments, technological advancements, and the rising demand for AI-powered solutions in drug development.

What is the AI Drug Discovery Market Size by Geographical Region?

The North America market size, representing 56.18% of the global total, was estimated at USD 3.72 billion in 2024 and should reach USD 6.93 billion by 2034 (a CAGR of 10.20% during the forecast period). The oncology segment revenue accounted for 21%. The infectious diseases segment is projected to grow at the fastest CAGR from 2025 to 2034.

Europe's market share is 20%, Asia/Pacific's share is 15%, Latin America at 5% and Middle East/Africa 3%. The market is anticipated to increase at an outstanding rate all through the gauge period.

The market is being moved basically by an expansion in the quantity of modern collusions and organizations. Besides, computerized reasoning limits the expense and time spent doing drugs research, which supports market development. Deep Pharma Intelligence estimates that investments in the field of AI-powered drug discovery have tripled over the past four years to nearly $25 billion;

Janssen Research & Development (JNJ arm) concludes that the AI method is up to 250 times more efficient than the traditional method of drug discovery holding the potential to reduce timelines for drug discovery, to increase accuracy of predictions on efficacy and safety as well as to create better, and more, opportunities to diversify drug pipelines; and Morgan Stanley believes that AI-powered drug discovery will lead to an additional 50 novel therapies being brought to market over the next decade, with annual sales in excess of $50 billion! In other words, a $50 billion AI drug discovery revolution is underway.

Why Use AI Technology In Drug Development?

AI technology helps companies aggregate and synthesize a lot of information that’s needed for clinical trials, thus shortening the drug development process. It can also help understand the mechanisms of the disease, establish biomarkers, generate data, models, or novel drug candidates, design or redesign drugs, run preclinical experiments, design and run clinical trials, and even analyze the real-world experience. Source

The MunAIMarket Ai-Focused Drug Discovery Stock Portfolio: UP 16.3% week-ending June 6th; DOWN 16.in May%

The following 5 clinical-stage companies are using AI exclusively to facilitate their discovery and development of new drugs and here is how their stocks performed week ending June 6th, in descending order, and in the month of May

1. Recursion Pharmaceuticals (RXRX): UP 31.3% w/e June 6th; DOWN 25.2% in May
   •  decodes biology by integrating technological innovations to industrialize drug discovery (see details here)
   • see pipeline here
2. AbCellera Biologics (ABCL): UP 20.8% w/e June 6th; DOWN 22.6% in May
   • searches for antibodies from natural immune responses which are then outsourced to their partners. (see details here)
   • see pipeline here
3. Absci Corporation  (ABSI): UP 14.3% w/e June 6th; DOWN 13.7% in May
   • analyzes drug characteristics that may provide therapeutic benefit. (see details here)
   • see pipeline here
4. Schrödinger (SDGR): UP 13.9% w/e June 6th; DOWN 15.6% in May
   • uses its platform to discover novel molecules which it leverages to build a pipeline of its own clinical programs in addition to selling access to its platform to other pharmaceutical firms (see details here)
   • see pipeline here
5. Relay Therapeutics (RLAY): UP 12.0% w/e June 6th; DOWN 9.9% in May
   • uses its platform to enhance small molecule therapeutic discovery in targeted oncology and genetic disease indications (see details here)
   • see pipeline here

Summary

The MunAiMarket AI-Focused Drug Discovery Stock Portfolio was UP 16.3% week-ending June 6th following a 16.8% Decline in May.

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