The landscape of artificial intelligence in global pharma and healthcare is swiftly transitioning from potential to reality, a focal point highlighted at the recent J.P. Morgan Healthcare Conference. Major collaborations, like the $1 billion NVIDIA–Eli Lilly AI co-innovation lab, alongside a rise in AI-driven drug development announcements, send a clear message: AI is now an essential component in the industry.
This global trend is starting to manifest in India as well.
In a discussion with BCG’s Chris Meier, Global Healthcare Leader and Managing Director & Partner, and Priyanka Aggarwal, India & South East Asia Leader for BCG’s Healthcare Practice, one insight emerged—2026 is anticipated to signify the transition from experimentation to implementation and scaling of AI in pharma.
From awareness to early adoption
BCG observes that the Indian pharma industry has progressed beyond mere awareness and is now in the early stages of adoption. Approximately 20% of Indian pharma companies are already utilizing AI, chiefly in documentation, quality analytics, and repetitive operational tasks. Concurrently, experimentation is taking place throughout various aspects of the value chain, reflecting a broader intent to integrate AI capabilities.
BCG predicts that the most substantial impact of AI in the next one to two years will be in small-molecule drug discovery. AI is expediting molecule optimization and target identification, thereby shortening development timelines that usually span years. Additionally, advancements in generative AI technologies are enhancing the automation of intricate, knowledge-intensive processes in technical and regulatory documentation.
Drug discovery leads, scale remains the challenge
BCG estimates that AI can reduce drug discovery and development timelines by 25–50%, significantly minimizing both costs and time to market. An increasing number of AI-enabled molecules are making their way into research pipelines and early clinical trials, suggesting that AI is beginning to generate tangible results beyond mere pilot initiatives. Overall, AI-driven discovery is reported to be 30–50% quicker than traditional methods.
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Despite the evident momentum in innovation, scaling continues to be a significant barrier for India. BCG emphasizes the importance of grassroots innovation, especially in tackling public health issues. AI-discovered drugs and data-driven solutions could be pivotal in bridging access gaps, provided they are implemented at scale.
