Large pharma companies are discovering that implementing AI to solve one part of the drug development workflow, like target discovery, creates new bottlenecks downstream. The subsequent, non-optimized stages become overwhelmed, highlighting the need for a holistic, fully choreographed approach to AI adoption across the entire R&D pipeline.

Related Insights

A significant implementation roadblock is the ownership battle between IT and business functions. IT wants to control infrastructure and moves slowly, taking years. In response, business units run their own unsanctioned initiatives to move quickly, leading to a disconnected and unscalable approach to AI.

Companies run numerous disconnected AI pilots in R&D, commercial, and other silos, each with its own metrics. This fragmented approach prevents enterprise-wide impact and disconnects AI investment from C-suite goals like share price or revenue growth. The core problem is strategic, not technical.

A critical error in AI integration is automating existing, often clunky, processes. Instead, companies should use AI as an opportunity to fundamentally rethink and redesign workflows from the ground up to achieve the desired outcome in a more efficient and customer-centric way.

Many pharma companies have breakthrough AI results in isolated functions, or "pockets of excellence." However, the ultimate competitive advantage will go to the company that first connects these disparate successes into a single, integrated, enterprise-wide AI capability, thereby creating compounded value across the organization.

While AI can accelerate the ideation phase of drug discovery, the primary bottleneck remains the slow, expensive, and human-dependent clinical trial process. We are already "drowning in good ideas," so generating more with AI doesn't solve the fundamental constraint of testing them.

Many pharma companies allow various departments to run numerous, disconnected AI pilots without a central strategy. This lack of strategic alignment means most pilots fail to move beyond the proof-of-concept stage, with 85% yielding no measurable return on investment.

While most focus on AI for drug discovery, Recursion is building an AI stack for clinical development, where 70% of costs lie. By using real-world data to pinpoint patient locations and causal AI to predict responders, they are improving trial enrollment rates by 1.5x. This demonstrates a holistic, end-to-end AI strategy that addresses bottlenecks across the entire value chain, not just the initial stages.

Many AI projects become expensive experiments because companies treat AI as a trendy add-on to existing systems rather than fundamentally re-evaluating the underlying business processes and organizational readiness. This leads to issues like hallucinations and incomplete tasks, turning potential assets into costly failures.

Pharma companies engaging in 'pilotitis'—running random, unscalable AI projects—are destined to fall behind. Sustainable competitive advantage comes from integrating AI across the entire value chain and connecting it to core business outcomes, not from isolated experiments.

Titus believes a key area for AI's impact is in bringing a "design for manufacturing" approach to therapeutics. Currently, manufacturability is an afterthought. Integrating it early into the discovery process, using AI to predict toxicity and scalability, can prevent costly rework.