Biotechnology has experienced tremendous advancements in recent years owing to the integration of artificial intelligence (AI). AI tools are enabling more precise and faster drug discovery processes by leveraging petabytes of genetic and biological data. AI is augmenting human capabilities by detecting complex patterns, making correlations across diverse data types and accelerating research workflows.

Artificial intelligence has greatly aided biotechnology applications ranging from gene sequencing and drug discovery to precision agriculture and biomanufacturing. AI is augmenting genomics by analyzing DNA sequences to understand disease patterns and risk factors. In drug development, AI is powering virtual drug screening to identify target molecules and simulating molecular interactions. AI is also facilitating the optimization of industrial bioprocesses and yield improvement in biological manufacturing. The use of machine learning and deep learning algorithms can help analyze biological images and speed up research in cell and molecular biology.

Global AI in biotechnology market is estimated to be valued at USD 2.10 Bn in 2024 and is expected to reach USD 7.11 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 19% from 2024 to 2031.

Key players operating in the AI in biotechnology market include IBM, Microsoft, Gingko Bioworks, Deep Genomics, Cloud Pharmaceuticals, Insilico Medicine, Anthropic, BenevolentAI, Cyclica and Envisagenic.

Key Takeaways

Key players - Key players operating in the AI in biotechnology market are IBM, Microsoft, Gingko Bioworks, Deep Genomics, Cloud Pharmaceuticals, Insilico Medicine, Anthropic, BenevolentAI, Cyclica and Envisagenic.

Key opportunities - Increased investment in AI and cloud computing, focus on drug repurposing during COVID-19 pandemic, growing genomic and biological data availability and rising R&D expenditure present lucrative opportunities in the market.

Global expansion - Major players are focusing on collaborations, acquisitions and expanding their geographical footprint in Asia Pacific and European countries to tap the potential of Artificial Intelligence (AI) in Biotechnology Market Demand in precision medicine and agriculture.

Market Drivers
- High computational power and cloud infrastructure is enabling advanced machine learning applications in biotech research.
- Cost-effectiveness of AI tools compared to traditional research methods is driving adoption across biomanufacturing, healthcare and agriculture sectors.
- Rising chronic disease burden and need for faster drug development is augmenting the role of AI in precision medicine and drug discovery.

PEST Analysis

Political: Regulations regarding data privacy and security are evolving for AI applications. Laws need to balance benefits of medical advancements with ethical use of personal data.

Economic: AI can potentially reduce drug development times and costs. It may also improve disease diagnosis and outcomes. This could lower healthcare expenditures in the long run.

Social: Widespread access to AI tools may help address disparities in healthcare. However, concerns around job losses and "black-box" algorithms need addressing to gain public trust.

Technological: Advances in deep learning, computing power, data storage etc. are enabling new applications in genomics, drug discovery etc. Interoperability issues and data bias remain technical challenges.

Geographical regions with high market value
North America currently holds the largest share of the artificial intelligence in biotechnology market, driven by significant investments in AI R&D by pharmaceutical and biotech companies as well as government agencies in the US. The presence of major market players and advanced healthcare infrastructure has boosted early adoption of AI-based solutions.

However, Asia Pacific is emerging as an important regional market with growing investments and partnerships between tech giants and research institutes across China, India, and Japan seeking to apply AI to address healthcare challenges.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)