Pharma Sector Shifting to AI-Led Innovation
AI is being deployed beyond data analysis into target discovery, molecule design and clinical trial optimisation.
Hyderabad:The pharmaceutical industry is shifting from linear drug development models to an integrated innovation architecture that combines advanced biology, artificial intelligence and digitally enabled manufacturing, according to a report.
The report titled, ‘Pharma’s new architecture: Where novel science meets AI and manufacturing power,’ released by EY-Parthenon India at the BioAsia 2026, states that competitive advantage will increasingly depend on the seamless integration of three domains — innovative therapeutic science, data-driven intelligence across R&D and clinical development, and advanced manufacturing systems capable of scaling complex products reliably.
AI is being deployed beyond data analysis into target discovery, molecule design and clinical trial optimisation. Digital twins are being used in bioprocessing to simulate production environments and improve yields, while quality systems enable real-time monitoring and predictive quality control on factory floors, it said.
“The industry is moving from isolated innovations to interconnected systems of discovery and delivery,” said Suresh Subramanian, partner and national life sciences leader, EY-Parthenon. He added that future-ready pharma companies will need platform-based capabilities rather than individual functions.
For India, he said the shift presents a strategic opportunity. The country’s strength in cost-efficient manufacturing provides a base to expand into proprietary biologics, new modality platforms and digital R&D.
Subramanian said regulatory evolution, cross-disciplinary talent development and enterprise-wide technology adoption will be critical to translating policy intent into outcomes.
According to the report, future growth will hinge on intellectual property creation, platform development and ecosystem partnerships, not just production volumes.
The Union Budget 2026 has reinforced this direction through the `10,000-crore Biopharma Strategy for Healthcare Advancement through Knowledge, Technology and Innovation (SHAKTI). The five-year programme aims to position India as a global biopharma manufacturing hub.