Artificial intelligence is revolutionizing the biotechnology sector through improved drug discovery, sophisticated biological data analytics, precision medicine, biomarker detection, better clinical trials, and other processes. AI-based systems are capable of handling complex biological datasets, finding viable drug targets, predicting molecular interactions, and helping scientists make decisions using data-driven insights in drug development processes.
According to SNS Insider, the U.S. Artificial Intelligence (AI) in Biotechnology Market was valued at USD 1.34 billion in 2025 and is expected to reach USD 6.98 billion by 2035, growing at a CAGR of 17.90% from 2026 to 2035. Globally, the Artificial Intelligence (AI) in Biotechnology Market was valued at USD 3.91 billion in 2025 and is projected to reach USD 22.50 billion by 2035, expanding at a CAGR of 19.13% during 2026–2035.
Availability of biological data sets, advances in machine learning and deep learning, and increased funding by pharmaceutical and biotech companies are making the process of AI incorporation into biotechnology processes faster. More pharmaceutical companies are incorporating AI into their processes in order to minimize research and development costs, improve the process of selecting candidates and clinical trials, and decrease development time. On the other hand, there is an increased use of AI technology in genomics, proteomics, bioinformatics, and personalized medicine.
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U.S. Artificial Intelligence (AI) in Biotechnology Market Analysis
The United States is the leading nation state market for AI in the field of biotech, owing to its considerable expenditures on R&D in pharmaceuticals and biotech, advanced healthcare infrastructure, and the use of drug discovery technologies powered by AI. There is a very healthy ecosystem comprising pharmaceutical firms, biotech firms, technology companies, research firms, and clinical research firms in the United States.
AI is now being used in drug discovery, molecular modeling, genomics, clinical data analytics, and precision medicine. Pharmaceutical firms are using AI systems for analyzing biological data, identifying new therapeutic targets, molecule optimization, and clinical trial design.
Top 5 Global Artificial Intelligence (AI) in Biotechnology Companies
1. NVIDIA Corporation
As a technological enabler for AI-based biotech and drug discovery, NVIDIA has been able to leverage its computing resources, accelerated computing platforms, and AI-specific technologies. The NVIDIA’s CUDA-X microservices for biology, chemistry, and genomics are geared towards aiding drug discovery using AI, generative biology, imaging, and molecular simulations.
In 2025, NVIDIA, in collaboration with Eli Lilly, initiated an AI co-innovation laboratory worth a billion dollars that aims at leveraging AI models, robotics in laboratories, and experiments to expedite the discovery and clinical development of molecules.
2. Illumina Inc.
Illumina is one of the key companies in genomics and is becoming more involved in the development of biological research with the help of AI owing to large amounts of data that come from genomics and cellular studies. In 2026, Illumina started the project called Billion Cell Atlas, which included the mapping of 1 billion cells modified with the help of CRISPR to use the information for AI model training in drug discovery.
The project will support collaboration among researchers along with such companies as AstraZeneca, Merck, and Eli Lilly with applications in studying mechanisms of diseases and validation of therapeutic targets.
3. Recursion Pharmaceuticals
Recursion Pharmaceuticals is a pharmaceutical company that utilizes artificial intelligence in discovering drugs based on machine learning, automation, and large-scale biological data visiualization sets. The company uses technology platform that relies on computation techniques for analysis of biological connections with possible therapy implications.
The partnership of Recursion Pharmaceuticals with Exscientia in 2024 enhanced the company's end-to-end drug discovery capabilities via incorporating artificial intelligence models, clinical pipelines, automation, and large-scale biological data sets.
4. Insilico Medicine
Insilico Medicine is a renowned biotechnology firm that deals in AI-based computational technologies for drug discovery and development. It uses AI in its platform to facilitate target identification, molecule generation, and other phases in the process of developing drugs.
This technology by Insilico Medicine is indicative of the increasing use of generative AI and machine learning technologies in drug research, especially as researchers try to enhance their productivity and reduce costs incurred using traditional methods of drug discovery.
5. AstraZeneca plc
One of the leading players that utilize artificial intelligence for drug discovery and development, genomics and precision medicine is AstraZeneca. The participation of AstraZeneca in biotechnological advances using artificial intelligence shows how dependent the whole pharmaceutical industry becomes on computational technologies to enhance R&D processes.
Also, AstraZeneca was involved in collaboration projects that used artificial intelligence along with big biological data. The collaboration related to the Billion Cell Atlas project by Illumina proves how important the AI-assisted analysis of disease mechanisms and therapeutic targets becomes.
What the Future of the Artificial Intelligence (AI) in Biotechnology Market Holds
However, there will be other key aspects that will shape the future of AI in biotechnology, such as the acceleration of drug discovery process and its cost reduction. In this way, AI systems can be used for analysis of biological data sets, the identification of new targets for drug development, prediction of molecular activity, as well as optimization of lead compounds.
Another significant application area is precision medicine, which involves the use of AI technologies for the analysis of genetic information, personal history of patients, biomarkers, and diseases. With further advancement in genomics and biomarkers studies, AI is likely to play an increasingly important role in these spheres.
