Q4 2025 PitchBook Analyst Note: AI in Drug Development

While AI is reshaping nearly every industry, its influence may prove most transformative in biopharma, where new technologies promise to address the high failure rate, lengthy development timelines, and escalating costs that characterize the industry. VC funding for AI drug development totaled $2.7 billion through the first three quarters of 2025. An emerging class of AI-native drug developers, using breakthrough models and computational tools to drive discovery and development, has attracted the majority of this capital and rapidly become some of the most well-funded startups in biopharma.

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Source: https://pitchbook.com/news/reports/q4-2025-pitchbook-analyst-note-ai-in-drug-development

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