Effectiveness of AI in Drug Discovery

Artificial Intelligence (AI) could not only create cost and time-saving opportunities in drug discovery but also enhance innovativeness. In this research, we assess how the AI capability (AIC) of a firm affects the novelty of the drugs developed by the firm. We assess AIC along two aspects- human and structural and examine how quantity, diversity, and veracity dimensions of human and structural AIC affect the novelty of drugs. The novelty of drugs discovered and approved by the FDA during the last 12 years is measured using cheminformatics. Patents and LinkedIn data were used in capturing structural and human AIC. The results based on data from 177 firms show the significance of the quantity and veracity dimensions of both structural and human aspects of AIC. However, we found mixed results concerning the relationship between the diversity of structural and human aspects of AIC and novel drug discovery. Thus, our research sheds light on the importance and possibilities of AI in drug discoveries.