Artificial Intelligence and Drug Innovation

Bowen Lou and Lynn Wu, Operations, Information, and Decisions, The Wharton School

Abstract: Artificial Intelligence (AI) is playing an increasingly important role in the global economy and has transformed many business practices. As AI has advanced beyond the conventionally narrow domains, it is starting to exhibit characteristics of “general purpose technologies (GPT)” that are expected to change the nature of more business innovations and reduce their associated financial costs and time. This proposal explores how AI affects the discovery and development of new drugs. By focusing on one important industry—the pharmaceutical industry where innovation is critical for productivity and competitive advantage, we aim to understand and uncover where AI can provide the most value in the entire drug discovery and development process, and how the novelty of drugs can be facilitated by AI.