AI In Biotechnology Global Market Report 2025

The AI in biotechnology market size has grown exponentially in recent years. It will grow from$4.46 billion in 2024 to $5.56 billion in 2025 at a compound annual growth rate (CAGR) of 24.8%. The growth during the historic period can be attributed to the rise in computational capabilities, the expansion of AI-driven drug discovery efforts, the increasing application of AI in microbiome research, the emergence of AI in regenerative medicine, and the growing adoption of AI in agricultural biotechnology.

The AI in biotechnology market size is expected to see exponential growth in the next few years. It will grow to$13.4 billion in 2029 at a compound annual growth rate (CAGR) of 24.6%. The growth in the forecast period can be attributed to the increasing adoption of AI technologies, rising investments in AI-biotech startups, growing use of AI in toxicology studies, the emergence of AI-driven predictive models in cancer research, and the expanding field of AI-driven drug repurposing. Key trends expected during this period include advancements in deep learning and neural networks, the integration of AI with genomics and proteomics, progress in AI-driven CRISPR gene editing, the use of AI in pharmacovigilance, and the development of AI-based companion diagnostics.

he growing adoption of artificial intelligence (AI) is anticipated to drive the expansion of the AI in biotechnology market. AI refers to the simulation of human cognitive functions by machines, particularly computer systems, to execute tasks such as learning, reasoning, and problem-solving. The rise in AI adoption is fueled by its ability to improve efficiency, precision, and decision-making across a wide range of industries, particularly through automating complex data analysis with high accuracy. In biotechnology, AI significantly accelerates drug discovery, streamlines research processes, and enhances predictive modeling, ultimately contributing to better healthcare outcomes. For example, in October 2024, the UK’s Department for Science, Innovation & Technology (DSIT) reported a notable increase in AI activity in 2023, including a 17% rise in the number of AI companies (+543), a 34% boost in AI-generated revenue (+£3.6 billion), a 29% growth in employment (+14,500), and a nearly 57% increase in gross value added (GVA) (+£2.1 billion) compared to 2022. As a result, the expanding adoption of AI is propelling growth in the AI-driven biotechnology market.

Leading companies in the AI in biotechnology sector are prioritizing the development of advanced technologies, such as AI-powered platforms for antibody discovery, to strengthen their market position. These platforms leverage AI to efficiently identify and optimize therapeutic antibodies, accelerating drug development while reducing costs and improving clinical outcomes. For instance, in February 2023, AION Labs, a venture studio based in Israel, introduced DenovAI - an innovative platform dedicated to the de novo discovery of therapeutic antibodies. This state-of-the-art system integrates machine learning with computational biophysics to identify high-affinity antibody candidates, offering greater sequence diversity, enhanced precision, and shorter development cycles. DenovAI represents a significant leap in biotechnology, facilitating faster, more affordable drug discovery and increasing the likelihood of clinical success across various disease areas.

In February 2025, Incyte Corporation, a U.S.-based biopharmaceutical firm, entered into a strategic partnership with Genesis Therapeutics Inc. to harness the potential of AI in enhancing drug discovery efficiency. The partnership combines Incyte’s deep expertise in drug development with Genesis Therapeutics’ proprietary AI platform to accelerate the discovery and refinement of innovative small molecule therapies for targeted oncology treatments. Genesis Therapeutics Inc. is a U.S.-based biotechnology company that specializes in AI-powered drug discovery, aiming to revolutionize therapeutic development through advanced technological applications.

Major players in the ai in biotechnology market are Google LLC, Pfizer Inc., Johnson & Johnson Services Inc., F. Hoffmann-La Roche Ltd., International Business Machines Corporation (IBM), Bayer AG, Sanofi S.A., Bristol-Myers Squibb Company, AstraZeneca Plc, Abbott Laboratories, Novartis AG, Roivant Sciences Ltd., Gilead Sciences Inc., NVIDIA Corporation, Amgen Inc., Novo Nordisk A/S, Merck KGaA, Biogen Inc., CareDx Inc., Clario Inc., BenevolentAI Limited, Recursion Pharmaceuticals Inc., Insilico Medicine Inc., and Genesis Therapeutics Inc.

North America was the largest region in the AI in biotechnology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in AI in biotechnology report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the AI in biotechnology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in biotechnology involves the application of machine learning and data-driven algorithms to interpret biological data and accelerate scientific research. It plays a vital role in areas such as drug discovery, genomics, diagnostics, and personalized medicine by recognizing patterns and forecasting outcomes. AI improves operational efficiency, reduces research costs, and provides deeper insights into complex biological systems, fueling innovation in healthcare and life sciences.

The primary components of AI in biotechnology include software, hardware, and services. Software in this context consists of sophisticated computational tools and algorithms that analyze biological data, simulate complex biological systems, and speed up processes such as drug development, genomic analysis, and precision medicine. It supports applications such as drug discovery and development, clinical trial optimization, medical imaging, diagnostics, and more, serving end users such as pharmaceutical and biotechnology companies, academic and research institutions, healthcare providers, contract research organizations (CROs), contract development and manufacturing organizations (CDMOs), and others.

The AI in biotechnology market research report is one of a series of new reports that provides AI in biotechnology market statistics, including AI in biotechnology industry global market size, regional shares, competitors with a AI in biotechnology market share, detailed AI in biotechnology market segments, market trends and opportunities, and any further data you may need to thrive in the AI in biotechnology industry. This AI in biotechnology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The AI in biotechnology market consists of revenues earned by entities providing services such as genomics analysis, precision medicine development, biomanufacturing optimization, and AI-driven diagnostics. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in biotechnology market also includes sales of bioinformatics tools, automation systems, and AI-integrated laboratory equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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