“Biotech and pharma are in the midst of adopting AI with the end goal of reducing costs of drug development," said Kayla Valdes, PhD, associate director, scientific programs, DIA.
Read more: Artificial intelligence in drug development predicted to grow: DIA-Tufts study
Deep Knowledge Analytics recently published the report based on its research of 50 pharma and tech corporations applying AI in advanced biomedicine. The report examines AI-Friendly CEOs and board members – an indication that a company is focused on increasing efficiency, according to the firm, which is the analytical subsidiary of the investment fund Deep Knowledge Ventures.
“We expect the presence of AI-friendly CEOs and board members to enable companies to outperform general market trends in the sector via a more effective and complex application of AI,” said Margaretta Colangelo, managing partner, Deep Knowledge Ventures.
“The application of AI is a new dimension that will be used to determine current and future market valuations of companies,” she told us.
Per the report, the location of AI-friendly CEOs and board members is concentrated in the US, Germany, and Japan. More specifically, the cities with the highest numbers are New York, San Francisco, Indianapolis, Ingelheim am Rhein, Basel, and Tokyo.
- 54% of the AI leaders work in tech companies
- 46% of the AI leaders work in pharma companies
- 3% of the AI leaders have experience and education in both AI and drug development
The areas that hold the most promise are biomarker discovery and early-stage diagnostics with a focus on preventive medicine, Colangelo said. Drug discovery and data management are the areas growing the most.
The objective of the Deep Knowledge Analytics' report was to establish a benchmark which the company expects will correlate with market and investment prospects – with level of AI commitment serving as an indicator of market capitalization growth, said Colangelo.
“Pharma and health care corporations with AI friendly executives at the helm will prosper. AI-friendly CEOs and board members will demonstrate how the effective use of AI can increase a company's valuation,” she added. “Companies with AI-friendly executives will become much more valuable than their peer organizations.”
Colangelo said, “The use of AI by companies will become a standard component analyzed by fund managers to evaluate companies for investment.
“We expect to start seeing the impact of AI friendly CEOs and board members in 3-5 years depending on the type of corporation and the sector of its AI applications.”
