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How AI is Revolutionizing Drug Discovery and Development?

Dr. Jagreet Kaur | 02 May 2025

How AI is Revolutionizing Drug Discovery and Development?
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The pharmaceutical industry is transitioning due to the advent of Artificial Intelligence (AI) in discovering and developing new drugs. The conventional process of drug discovery is itself very slow and costly, taking more than a decade and billions of dollars to produce a single drug. AI is on track to address these challenges by improving productivity, accuracy, and innovativeness across several phases of drug development.

 

However, this blog goes deeper to explain the technical aspects of how Responsible AI is disrupting this essential industry. 

AI-Driven Target Identification and Validation

Genomic and Proteomic Data Analysis 

Popular ML and DL algorithms can effectively sort through the massive genomic and proteomic databases to select probable drug targets. CNN and RNN can reveal the hidden /*subtle*/ relationship and correlation within the biological data, which may provide clues about disease-relevant mechanisms. 

 

Example: DeepMind’s AlphaFold has recently offered an unprecedentedly improved understanding of protein folding. This knowledge is essential in determining the ability of these proteins to engage with possible drug molecules.

Network Biology and Systems Pharmacology 

The involved AI models can merge multi-omics datasets, including those of genomics, transcriptomics, proteomics, and metabolomics, to build highly connected biological systems. GNNS can describe these complex interactions well, leading to the identification of new drug targets and new insights into disease mechanisms. 

 

Case Study: Insilico Medicine employed network biology based on an artificial neural network to predict targets for fibrosis, which shortened target identification times compared to conventional experimental approaches. 

AI in Virtual Screening and Molecular Design

Virtual Screening 

Virtual screening means performing interaction fields over extensive files of compounds to discover the ones most likely to interact with a specific protein target. This process is facilitated by prediction models and the high-throughput screening strategies offered by AI. 


Techniques:
 

  • Docking Simulations: The computational methods involving docking simulations, supplemented by AI, can predict binding affinities more accurately using a selection of machine-learned scoring functions.

  • Generative Models: Variational autoencoders and generative adversarial networks can be applied to generate new molecular structures with desired biological activities. 

Example: Atomwise uses deep learning modelling to estimate the likelihood of compound binding with specific receptor targeting to screen millions of small molecules quickly. 

De Novo Drug Design 

AI also helps in the de novo design of molecules to create brand-new drug-like entities with the right balance of pharmacokinetic and pharmacodynamic characteristics. This work shows that RL algorithms can progressively optimise molecular structures until the desired goals are attained—responsible AI in Healthcare.

 

Case Study: Exscientia utilised its AI to design DSP-1181, an obsessive disorder drug candidate, as an example of AI's capability to create prospective drugs in much less time than standard processes.

Predictive Modelling for ADMET Properties

ADMET Prediction 

Here, ADMET properties are essential to establish a compound's suitability as a drug candidate. Different AI models pre-estimate these properties during the initial stages of the drugs’ development to minimise the risk of failure at the advanced stages. 

Techniques: 

  • QSAR Models: Thus, QSAR models use chemical structure analysis to set up machine learning algorithms that forecast biological activity and ADMET characteristics.  

  • Ensemble Learning: Stacking two or more ML algorithms (Random Forest, Gradient Boosting) improves an ADMET prediction for intricate phenotypes. 

Example: Schrödinger currently employs the ADMET machine learning prediction techniques to assess the compounds’ pharmacokinetics, thus enabling the identification of the most suitable candidates for the further stages of the development process. 

Optimisation of Clinical Trials

Patient Stratification and Recruitment 

AI enhances clinical trial feasibility by using EHR and RWD to choose the right patient population. Cohorts are stratified based on clinical information only, with the help of Natural Language Processing (NLP) to minimise undue recruitment time. 

Techniques: 

  • Predictive Analytics: They also predict patients' eligibility and adherence, making trials more efficient.  

  • Simulation Models: Trial predictions are made through simulation via AI to enhance the operational protocol of trials. 

Adaptive Clinical Trials 

AI makes trial design active by adjusting protocols depending on data received halfway through. The situation changes, and the probabilities of retaining the trials favour using Bayesian models and reinforcement learning. 

 

Case Study: Pfizer used AI in agenda reformulation in oncology studies with mid-trial adaptive adjustments to increase patient benefits and speed drug approval. 

AI in Personalised Medicine

ai in personalized medicine

Fig 1.0: AI in Personalized Medicine  

Biomarker Discovery 

AI learns about biomarkers that can help in treatment and which treatment has a high chance of responding well. ML algorithms evaluate different types of inputs to find the biomarkers of response to therapy and the side effects. 

 

Example: Foundation Medicine employs machine learning techniques to analyze genomic data to identify biomarkers that eventually help administer better-targeted cancer treatments, enhancing cure accuracy. 

Predictive Modeling for Treatment Response 

AI models anticipate a patient’s reaction to the drugs in their MDA by combining genotypes, phenotypes, and the patient's environment. These models help define the treatment that will be most effective and have fewer side effects. 

Techniques: 

  • Support Vector Machines (SVMs): SVMs predict patient groups by response tendency. 

  • Deep Learning Models: DL architectures, such as autoencoders, incorporate intricate mapping between patient characteristics and treatment results.

AI in Drug Repurposing

  1. Knowledge Graphs and Semantic Analysis 

    AI utilizes knowledge graphs to connect various biomedical data sources, helping to identify existing drugs that could be repurposed for new therapeutic uses. Through semantic analysis and link prediction algorithms, it reveals hidden connections between drugs, targets, and diseases. 

  2. Similarity Metrics and Pattern Recognition 

    AI evaluates the chemical and biological similarities between current drugs and new targets. Methods like Tanimoto coefficients and neural similarity metrics assess structural and functional similarities, aiding in discovering candidates for repurposing. 

Overcoming Challenges with AI Integration

quantum technologies
Figure 2.0: Quantum technologies accelerate drug development 
  1. Data Quality and Integration 

    The effectiveness of AI models hinges on the quality of the data on which they are trained. Ensuring that datasets are high-quality, standardised, and well-integrated is crucial. Data normalisation, imputation, and integration pipelines are vital for preparing data for AI applications. 

  2. Interpretability and Explainability 

    The “black box” characteristic of some AI models can create challenges in regulatory settings. Creating interpretable models and using explainability methods, like SHAP (Shapley Additive explanations) and LIME (Local Interpretable Model-agnostic Explanations), can build trust and support regulatory approval of Transparent AI.

  3. Regulatory and Ethical Considerations 

    AI-driven drug discovery must comply with strict regulatory standards. Adhering to guidelines from organisations like the FDA and EMA while addressing ethical issues related to data privacy and algorithmic bias is essential for successfully integrating AI. 

Future Directions and Innovations

  1. Integration of Multi-Modal Data 

    In the coming years, AI models can expect to incorporate multimodal data, such as imaging, omics, and electronic health records (EHRs), to gain a comprehensive understanding of disease mechanisms and treatment responses. 

  2. Quantum Computing and AI 

    The merging of quantum computing and AI presents exciting opportunities for tackling complex molecular simulations and optimisation challenges at remarkable speeds, further expediting drug discovery. 

  3. AI-Augmented Robotics in High-Throughput Screening 

    Integrating AI with robotics for automated high-throughput screening can significantly improve precision and scalability, allowing for the rapid evaluation of extensive compound libraries with minimal human involvement. 

AI transforms drug discovery and development by improving target identification, refining molecular design, predicting ADMET properties, streamlining clinical trials, enabling personalised medicine, and facilitating drug repurposing. While there are challenges related to data quality, model interpretability, and regulatory compliance, the advantages of incorporating AI are substantial.

 

As AI technologies advance, their combined use with traditional pharmaceutical practices will likely lead to a new era of quicker, more efficient, and more effective drug development processes, ultimately enhancing patient outcomes and addressing unmet medical needs. 

Next Steps in Drug Discovery and Development 

Consult our experts about implementing advanced AI systems and how industries and departments use Decision Intelligence to become decision-centric. Leverage AI to automate and optimize drug discovery and development, enhancing efficiency, precision, and responsiveness.

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Table of Contents

dr-jagreet-gill

Dr. Jagreet Kaur

Chief Research Officer and Head of AI and Quantum

Dr. Jagreet Kaur specializing in Generative AI for synthetic data, Conversational AI, and Intelligent Document Processing. With a focus on responsible AI frameworks, compliance, and data governance, she drives innovation and transparency in AI implementation

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