The Pharmaceutical Industry's AI Journey And Digital Transformation
The pharmaceutical industry stands at a critical juncture. To navigate the complexities of sophisticated drug development and manufacturing, a fundamental shift toward AI-powered technologies is not just desirable but essential.
Pharma's future hinges on embracing digital transformation and leveraging the power of AI to streamline operations, enhance problem-solving and root cause analysis, drive continuous improvement and mitigate risks within the pharmaceutical regulatory and compliance landscape.
The AI-Powered Future Of Pharma
AI is projected to generate between $60 billion and $110 billion in annual economic value for the pharmaceutical sector. Such untapped potential stems primarily from AI's ability to improve productivity across the drug lifecycle. Digital tools that can be tailored to complex processes and operational workflows, in addition to being more easily personalized to users' needs, will be key.
The pharmaceutical industry is estimated to invest $4.5 billion in its digital transformation initiatives within five years. The main manufacturing focus for digitalization will be on the optimization of operations, increased productivity and enhanced quality. Raw material conversion costs will decrease, and reliability with delivery will improve.
However, often due to issues in data quality, costly connectivity and maintenance challenges, as well as regulatory complexities, not all AI initiatives have been able to meet expectations. Success in AI initiatives can't happen without taking into account the needs of the organization's people, nor if the initiatives are not integrated into existing workflows. The most valuable gains from AI will likely result from the empowerment of people and using enhanced data analysis, knowledge management and augmented decision making.
The Key To Data Liberation
Too often, critical data is siloed across multiple systems that support pharmaceutical manufacturing—whether it be MES, historian or LIMS —and data is buried within unstructured sources like shift notes and maintenance logs. Such data silos cause fragmentation, hindering information transparency and accessibility as well as making it nearly impossible to deliver the right information to the right people at the right time.
Manufacturing facilities produce vast quantities of data from both automated sensors and human-generated notes (e.g., shift notes, compliance reports, etc.). However, much of this valuable information remains hidden or difficult to access, leading to inefficiencies and missed opportunities. Employees may spend hours searching through multiple data sources for information relevant to their current problem or task if they are able to find it at all.
AI, however, can help to bring buried pharmaceutical operational information to the surface by pulling data from shift notes, maintenance logs and other sources of structured and unstructured data. Utilizing natural language processing and machine learning enables people to ask questions in plain language, delivering the most relevant results in seconds rather than minutes or hours. This dramatically improves efficiency and access to valuable information.
Unlocking Historical Knowledge
Many manufacturing issues have historical precedents, but the solutions are often hidden in unstructured notes or lost when experienced workers retire or move on. The deep institutional knowledge required for informed root cause analysis and swift problem resolution is often scattered or missing. This leads to delays in problem resolution, as employees must either spend hours searching for relevant information or reinvent the wheel entirely each time a problem is encountered.
AI-powered tools can comb through past notes and data to identify historical precedents that can inform current issues. Using that data, it can then suggest potential root causes and present potential solutions for better decision making through AI's ability to run through similar past incidents. Production teams can then quickly get back on track. The technology will link directly to relevant notes and events so employees can see exactly what happened, who was involved, the most likely root cause and the impacts of actions taken.
Building A Culture Of Continuous Improvement
AI is a powerful driver of continuous improvement (CI) in pharmaceutical manufacturing, enabling teams to proactively identify opportunities for efficiency, quality and performance gains. AI applications can facilitate CI by capturing critical knowledge in real time, enabling communication within and between teams and giving access to the information people need to make more effective operational decisions.
AI supports continuous improvement by providing enhanced decision making. Data-driven insights help teams make faster, more informed decisions using real-time data. Streamlined knowledge sharing can happen when AI applications capture relevant knowledge, making valuable information accessible to all managers at every level of the organization. Improved collaboration occurs by consolidating data and automating communication. AI strengthens teamwork and information flow across shifts and departments.
Under the umbrella of continuous improvement is consistent process optimization. AI analyzes workflow patterns and bottlenecks over time, uncovering opportunities for ongoing improvements in production quality. Data-driven problem-solving can make a significant impact on a pharmaceutical company's profitability. For instance, AI surfaces actionable insights from past experiences, enabling quicker and more effective root cause analysis and more efficient problem solving.
Empowering Human-AI Collaboration
For AI tools to drive continuous improvement, they need to be rooted in the practical needs and workflows of the people using them. The next progression for pharma manufacturing is Industry 5.0, which emphasizes collaboration between humans and machines.
Industry 5.0 is the natural evolution from Industry 4.0, where automation and data management are partnered with human know-how. This symbiosis of humans and technologies allows humans to be the creative brain, resulting in faster and more innovative decision making.
When AI tools are designed to support employees' tasks and decision making, they empower teams to work smarter, adapt faster and create a sustainable culture of continuous improvement. By pinpointing specific areas where AI can make a quick impact, like root cause analysis, predictive maintenance or knowledge management, the value can be immediate while keeping the enterprise rollout manageable.
Taking the time to plan the rollout carefully, with a focus on training and creating a solid adoption plan, will make the transition smoother and encourage long-term use. The journey toward an AI-powered future in pharma requires a certain kind of strategy, one that focuses on a human-centered approach as well as provides continuous improvement.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
Shenandoah investigates financial mismanagement
Shenandoah borough officials have made inroads in their ongoing investigation of alleged financial mismanagement. Over the past few months, Shenandoah has taken measures to investigate claims of mismanagement presented by Borough Manager Mike Cadau, who was hired in January and found what he says are financial improprieties and misappropriation in the way previous borough administrators did business. On Monday, Cadau announced that officials from the Pennsylvania Auditor General's office will visit borough hall in September to conduct a comprehensive audit of the borough's Liquid Fuels account. Cadau has previously shared that he believes Shenandoah misappropriated funds from that account for projects not typically associated with it. The Department of the Auditor General, Cadau said, 'has been following what's been happening (from media reports), and they want to come in and they want to take a look at our Liquid Fuel accounts.' Also, Cadau said that he will join council president Joseph R. Boris and the borough's forensic auditor, Joseph Yanushefsky, at a meeting with the Internal Revenue Service in Wilkes-Barre on Aug. 25. Cadau said they were summoned by the IRS to go over an ongoing forensic audit led by Yanushefsky, whom the borough appointed this spring. At the meeting, they are expected to examine issues such as 941 forms, 1099 forms and pensions that the borough has provided over the years, Cadau said. Shortly after he was hired in January, Cadau described the borough as being in a 'very difficult' situation due to funding mishaps over the past two years. In May, the borough council appointed attorney Maria Casey as special counsel to help investigate the alleged mismanagement. At the July meeting, Cadau told council members that the Pennsylvania Office of Attorney General also will lead a criminal investigation into the matter. Other business Council members discussed an ongoing effort to repave several streets in the borough. After the successful curb-to-curb paving job done on five streets last year, the borough plans to pave five more by the end of November, Boris said. Boris said the borough will first repave North Jardin and Market streets, which will cost nearly $100,000 combined. Community Development Block Grant funds of $70,000 will be used to pay for those projects, with the remainder coming from interest received through the sale of the Municipal Authority of the Borough of Shenandoah, Boris said Tuesday. M&J Excavation Inc. of Bloomsburg has been tapped as the contractor for the two streets. The contract will be tentatively awarded at the Aug. 27 county commissioners meeting, Boris said. Also on Monday, Boris announced that attorney Shane Hobbs has resigned as the borough's solicitor. He read Hobbs' resignation letter, in which Hobbs stated that recent challenges — notably, his accepting a part-time job as a Schuylkill County Public Defender — resulted in his decision to leave. 'It was a pleasure working with you all,' wrote Hobbs, who served as solicitor since January 2024. Following Hobbs' decision, Boris said, council members interviewed a candidate, James E. Crossen III, of the Pottsville law firm Williamson, Friedberg & Jones. Council members appointed him as the new solicitor Monday. Council members also approved the hire of a new full-time secretary, Nazareth Perez. Solve the daily Crossword
Yahoo
3 minutes ago
- Yahoo
Website helps families see school smartphone policies
Gov. Kathy Hochul announced Thursday, Aug. 14 the launch of a website — — that enables New York parents and students to look up their school's plan for implementing bell-to-bell smartphone restrictions this fall. According to a news release from Hochul's office, the website allows New Yorkers to search by district or school name among more than 1,050 public school districts, charter schools and BOCES that have already published their policy for the coming school year — representing about 96% of the about 1,090 total districts and schools covered by the statewide requirement. School administrators across the state are implementing the plans as part of a new law to require bell-to-bell smartphone restrictions in K-12 schools statewide. 'Our kids succeed when they're learning and growing, not clicking and scrolling — and that's why schools across New York will be ready to implement bell-to-bell smartphone restrictions this fall,' Hochul said. 'As we look ahead to the start of the school year, communication is key — and our new online resource is making it easier for parents and students to review their school's plan.' The remaining districts and schools yet to finalize their policies are expected to do so in the coming days at upcoming school board meetings scheduled for August. The state's online resource will continue to be updated when any additional policies are published and submitted, the release stated. The law enacted this year requires bell-to-bell smartphone restrictions in K-12 school districts statewide, starting this fall for the 2025-26 school year. New York's statewide standard includes: • Prohibiting unsanctioned use of smartphones and other internet-enabled personal devices on school grounds in K-12 schools for the entire school day, including classroom time and other settings such as lunch and study hall periods; • Allowing schools to develop their own plans for storing smartphones during the day — giving administrators and teachers the flexibility to do what works best for their buildings and students; • Securing $13.5 million in funding to be made available for schools that need assistance in purchasing storage solutions; • Requiring schools to give parents a way to contact their kids during the day when necessary; • Requiring teachers, parents and students to be consulted in developing the local policy; • Preventing inequitable discipline The policy allows authorized access to simple cellphones without internet capability, as well as internet-enabled devices officially provided by schools for classroom instruction, such as laptops or tablets used as part of lesson plans. Additionally, the policy includes several exemptions to smartphone restrictions, including for students who require access to an internet-enabled device to manage a medical condition, where required by a student's Individualized Education Program, for academic purposes or for other legitimate purposes, such as translation, family caregiving and emergencies, according to the release. Solve the daily Crossword
Yahoo
3 minutes ago
- Yahoo
HelloFresh To Settle Consumer Protection Lawsuit With $7.5 Million Deal
HelloFresh To Settle Consumer Protection Lawsuit With $7.5 Million Deal originally appeared on L.A. Mag. HelloFresh, the world's largest meal kit delivery service, has been ordered to pay a $7.5 million settlement in a lawsuit co-led by the Los Angeles County District Attorney's Consumer Protection Division and the Santa Clara County District Attorney's Office. Allegedly, the company misled its customers, failing to adequately give notice to subscribers of continuing charges to their accounts. In a news release published by the Los Angeles County District Attorney's Office, the civil complaint detailed a list of alleged offenses, including negligence to 'Clearly and conspicuously disclose its subscription terms before collecting payment,' as well as failure to 'Offer an easy-to-use mechanism for cancellation.' Included in the release was a statement given by District Attorney Nathan J. Hochman, declaring, 'We will aggressively pursue enforcement when businesses take advantage of consumers by failing to clearly disclose subscription terms, obtain proper consent, or provide a fair way to cancel. Consumers have a right to know what they're signing up for, and they deserve better. Digital deception is still deception under the law.' The law in question refers to the California Automatic Renewal Law, which requires businesses to receive consumers' consent to automatic renewal and repeated service offers. District Attorney Hochman went on to thank the Consumer Protection Division and members of the California Automatic Renewal Task Force (CART), as well as applauding Deputy District Attorney Duke Chau: 'He and his team worked tirelessly with the Santa Clara County District Attorney's Office to secure a result that holds a major corporation accountable and delivers restitution to consumers. Their commitment to fairness and justice is what makes this outcome possible.'Filed in the Santa Clara County Superior Court, Judge Daniel T. Nishigaya ruled on Monday that HelloFresh was required to pay $6.38 million in civil penalties, $120,000 in investigative costs, and $1 million in restitution for impacted did not admit liability in the settlement, denying any wrongdoing and maintaining their commitment to customer transparency, underscoring their cooperation in the investigation and their compliance in settling amicably. This story was originally reported by L.A. Mag on Aug 19, 2025, where it first appeared. Solve the daily Crossword
