Life Sciences Practice

AI in biopharma
research: A time to
focus and scale
By focusing on specific scientific and operational pain points and
fully integrating AI into research workflows, biopharma companies
can deliver greater patient impact and significant value.

This article is a collaborative effort by Alex Devereson, Erwin Idoux, Matej Macak, Navraj Nagra,
and Erika Stanzl, representing views from McKinsey’s Life Sciences Practice.

© Janiecbros/Getty Images

October 2022
 Despite recent advancements,1 biopharma research
in drug R&D remains expensive and time-consuming,
although there are numerous opportunities to build
capabilities that enhance productivity and provide
probability-of-success gains. In this time of rapid
growth of AI in biopharma, attention today is on
how to make the most of the opportunity to deliver
value at scale by fully integrating AI approaches into
scientific process changes. In this article, we outline
how biopharma companies can harness AI-driven
discovery to deliver patient benefit, and why now is
the time for a shift from pursuing select marquee
partnerships and self-contained capability builds, to
focusing on coordinated investment in research AI
with impact to show for it.
The goal of the research phase in drug R&D is
to generate as many quality drug candidates as
possible, as quickly as possible, with the highest
probability of successful transition to clinical
development. The discovery process has historically
been a convergent, stepped, pass–fail funnel
process with attrition at every step—a process that
is highly inefficient given the number of compounds
initially tested.2 Ideally, this process should only
promote compounds for testing that are relevant for
targets that would lead to effective drugs for patients.
AI can help identify the most promising compounds
and targets at every step of the value chain so that
fewer, more successful experiments are conducted
in the lab to achieve the same number of leads.
The AI-driven drug discovery industry:
Jury still out on impact
The AI-driven drug discovery industry has grown
significantly over the past decade, fueled by
new entrants in the market, significant capital
investment, and technology maturation. These
AI-driven companies fall broadly into two categories:
providers of AI enablement for biopharma as a
service only, including software as a service (SaaS);
and providers of AI enablement that have, in parallel
with their services, their own AI-enabled drug
development pipeline (see sidebar “Why now is the
time for AI-enabled drug discovery”).
Our research has identified nearly 270 companies
working in the AI-driven drug discovery industry,
with more than 50 percent of the companies
based in the United States, though key hubs
are emerging in Western Europe and Southeast
Asia.3 The number of AI-driven companies with
their own pipeline is still relatively small today

1
Fabio Pammolli, et al., “The endless frontier? The recent increase of R&D productivity in pharmaceuticals,” Journal of Translational Medicine,
April 9, 2020.
2
Less than 0.1 percent of candidate molecules pass from screening to Phase I, with approximately 30 percent of new molecular entity costs
being spent in discovery (in the context of $1.1 billion to $2.8 billion spent to bring each drug to market). Oliver J. Wouters et al., “Estimated
research and development investment needed to bring a new medicine to market, 2009–2018,” JAMA, March 3, 2020.

Why now is the time for AI-enabled drug discovery

Technology advances and regulatory
openness to innovation have now
combined to make AI-enabled drug
discovery a practicable proposition.
In Europe, regulatory openness to in silico
and synthetic-derived insights has been
facilitated by EU regulation ICH M7 EU,
which enables quantitative structure-
activity relationship (QSAR) assessment
of toxicity instead of traditional assay-
based approaches. At the same time,
the US Food and Drug Administration
(FDA) recognizes single-arm trials
in rare diseases with control groups
incorporating real-world evidence (RWE).
In parallel, technology is advancing on two
fronts with (1) standardized approaches to
industrialization and scaling of machine
learning (ML)—for example, MLOps (ML
operations) and DataOps (data operations)
alongside customized services and
platforms; and (2) development of deep-
learning approaches for designing new
molecules and computer vision, which are
increasingly accessible through public
code repositories and academic literature.

2 AI in biopharma research: A time to focus and scale

 (approximately 15 percent have an asset in
preclinical development). Those with new molecular
entities (NMEs) in clinical development (Phase I and
II) have predominantly in-licensed assets or have
developed assets using traditional techniques.4
The growth in the AI-driven drug discovery space
has caught the attention of established biopharma
companies, and there has been a rapid rise in
partnerships between traditional biopharma
companies and AI-driven drug companies (Exhibit 1).
However, there is a significant concentration in
partnership activity and funding toward a small number
of AI-driven players with high valuations, multiple
deals, and significant capital raised (62 percent
CAGR in investment over the past decade). Over half
the capital invested in the space is concentrated in
only ten companies (all based in the United States
or United Kingdom). This is partly because of the
difficulty biopharma companies and investors have in
evaluating the long tail of AI-driven players. We have
seen biopharma companies that are deeply interested
in this space struggle to determine what emerging
players do, where they operate along the value
chain, the distinctiveness of their technology, and
which technologies have demonstrable impact.

Web 2022
AiBiopharmaResearch
Exhibit 1 of 4
Exhibit 1
Investment in
Investment in emerging
emerging AI-driven
AI-driven discovery
discovery players
players increased
increased for
for aa decade
decade
before the recent public-market downturn.
before the recent public-market downturn.
Companies founded, pharma Funding and capital investment in AI-driven drug
partnerships by year discovery companies
Companies founded Pre-seed Funding by year, $ billion
Pharma partnerships¹ and seed 8
Early-stage
60 VC²
Late-stage
VC 6
50
Private
equity
IPO/ 4
40 secondary
offering

Corporate/
M&A 2
30
Debt
Other ²
20 0
2011 2015 2020

Share of funding for top 10 companies with >50% of

10 funding vs others, %

0 51 49
2012 2015 2020 Top 10 companies Others

¹Includes companies founded from previous years.

²Venture capital.
Source: IQVIA Pharma Deals; Pitchbook (data has not been reviewed by PitchBook or IQVIA Pharma Deals analysts)

3
PitchBook data, 2022; IQVIA Pharma Deals, 2022.
4
Pharmaprojects/Informa, 2022.

AI in biopharma research: A time to focus and scale 3

 Two potential obstacles need to be overcome to
unlock impact from AI enablement in partnerships
among biopharma companies and AI-driven
discovery players. First, AI-enabled discovery
approaches (including via partnerships) are often
kept at arm’s length from internal day-to-day R&D;
they proceed as an experiment and are not anchored
in a biopharma companies’ scientific and operational
processes to achieve impact at scale. Second,
investment in digitized drug discovery capabilities
and data sets within internal R&D teams is all too
frequently to leverage partner platforms and enrich
their IP, rather than building the biopharma’s end-to-
end tech stack and capabilities.
When hurdles are overcome, partnerships can
come to fruition, and examples exist across the
discovery value chain. AstraZeneca’s long-standing
collaboration with BenevolentAI resulted in the
identification of multiple new targets in idiopathic
pulmonary fibrosis, with subsequent broadening
of the scope to other therapeutic areas (TAs).5
Sumitomo Dainippon Pharma worked with Exscientia
to identify DSP-1181 for obsessive compulsive
disorder in less than a quarter of the time typically
taken for drug discovery processes (under 12 months
versus four and a half years)—with ambitions to enter
the molecule into Phase I trials.6
Similarly, building AI-enablement capabilities
in-house within biopharma companies is difficult,
assembling the cross-functional teams required
to drive the transformation is challenging, and it
has been observed that AI enablement is often
implemented in a relatively isolated way. AI-enabled
approaches are often undertaken separately from
day-to-day science, with AI-based tools not fully
integrated into routine research activities.
Biopharma companies, therefore, need to strike
a balance between internal capability building
and partnerships with AI-enabled drug discovery
companies. Successful biopharma partnerships
5
“BenevolentAI announces 3-year collaboration expansion with AstraZeneca focused on systemic lupus erythematosus and heart failure,”
BenevolentAI press release, January 13, 2022.
6
“Sumitomo Dainippon Pharma and Exscientia joint development new drug candidate created using artificial intelligence (AI) begins clinical trial,
Exscientia press release,” January 30, 2020.
7
ADMET refers to chemical absorption, distribution, metabolism, excretion, and toxicity.
4 AI in biopharma research: A time to focus and scale
in the AI space should have some core benefits:
biopharma companies gain access to technology (AI
platforms, algorithms, and infrastructure), data (such
as curated labeled cell images, screening, ADMET7
data), talent (a ready supply of data scientists and
data engineers to build AI pipelines while training
biopharma talent), and assurances of data protection
in relation to a highly specific strategic intent to
maximize patient impact (for example, to co-develop
a certain molecule class in a specific TA).
Substantial impact from building
enterprise capabilities in-house
When biopharma companies successfully integrate
AI processes in day-to-day science and assembles
cross-functional teams with the right skill sets
(data science, engineering, software development,
epidemiology, discovery sciences, clinical, and
design) we have observed significant impact along
the value chain (Exhibit 2):
— Hypothesis generation capabilities—simplified
hypothesis generation tasks in experimental
biology fields from several weeks of researcher
time to curated lists in minutes by combining
real-world data (RWD), genomics data, and
scientific literature through a knowledge graph
for target identification
— Large-molecule-structure inference—
100 times acceleration in time to generation
of protein structures (for example, for peptide
or mRNA-vaccine-antigen generation) for
target identification
— Computer vision technology—up to ten times
acceleration achieved for screening- plate-image
analysis, with higher accuracy than classical
approaches, harnessing deep-leaning approaches
(for instance, convolutional neural networks) for
target validation and hit identification
Web 2022
AiBiopharmaResearch
Exhibit 2 of 4
Exhibit 2
AI has already delivered value across the research value chain.
AI has already delivered value across the research value chain.
Examples of AI-driven innovation in biotech and biopharma and observed impact across the
research value chain

Target Target Hit Lead generation

Preclinical
identification validation identification /optimization

Examples of Insights from In silico, Automated image Molecular Safety issue and
AI-driven data sources phenotypic, analysis for structure and DMPK¹ prediction
acceleration (internal and from cellular models cellular assays property using internal
vendors) to validate targets/ through prediction (eg, and public data
generate novel identify computer vision protein binding,
target hypothesis biomarkers technology logP, toxicity) for Hypothesis-
novel target driven dosages
Gene network, Disease causality Molecular proteins for adaptive trials
biochemical determined property and targeted
pathway, and within patient prediction (virtual Rapid design populations
cellular-response groups with screening) iteration, across
data integration significant unmet small and large
in target medical need molecules, using
identification eg, Generative
Adversarial
Networks

Examples Biopharma Biopharma Biotech saw Biopharma Biopharma

from unlocked internalized significant leveraged utilized predictive
industry and all-inclusive view AlphaFold2 and acceleration of generative algorithms to
observed of complex ColabFold to high-throughput machine learning maximize
impact indication by generate 3-D screening (HTS) model to probability of
attributing models of almost phase (time to expand library/ successful PK²
disease causality any known, 75% hits optimize predictions with
through linkages synthesized detected promising 83% of drug
between protein and reduced by 50%) compounds and development
genomic data protein–protein with platform- predict projects
and patient interactions, based compound progressing to
electronic reducing access “compound effcacy, clinic with no PK
medical records to 3-D structures prioritization” signifcantly issues
(EMRs) from 6 months to algorithm increasing
a few hours effciency of
library expansion,
with >60,000
new compounds
generated
¹Drug metabolism and pharmacokinetics.
²Pharmacokinetic.

— In silico medicinal chemistry—30 to 50 percent — In silico chemi-informatics—more than two

acceleration in small molecule, high-throughput
screening, using approaches such as molecular
property prediction in an iterative screening loop
(versus the existing approach of randomized
selection of compounds) for hit identification
times improvement over baseline on the key
metric of “efficacy observed,” over 100 times
the number of in silico experiments possible
compared with previous screening, and faster
time for design of compounds for optimization of
drug delivery efficacy for lead optimization

AI in biopharma research: A time to focus and scale 5

 — Knowledge-graph-based hypothesis
generation and drug repurposing—rapid
identification of novel indications for existing
investigational new drugs (INDs) or marketed
drugs via genomic information and pathways
associated with specific disease phenotypes,
accelerating time to new treatments for patients,
as part of the preclinical phase of R&D
management, prioritizing or deprioritizing
ongoing programs within clinical plan by
stopping low probability of success programs
early and reducing patient burden in clinical
trials; informing diligence of molecules
for licensing with an independent view of
biological potential, as part of the preclinical
phase of R&D

— Indication finding leveraging genomics— Biopharma companies that maximize the impact of
prioritizing indications to pursue for novel AI enablement can move beyond minimum viable
mechanisms of action (MoAs), finding product (MVP) individual use cases and build
new greenfield indications for life cycle research systems (Exhibit 3).

Web 2022
AiBiopharmaResearch
Exhibit 3 of 4
Exhibit 3
Research systems harness synergies when AI technologies are embedded into
Research systems harness
‘wet lab’ scientific synergies when AI technologies are embedded into
processes.
‘wet lab’ scientific processes.
Parts of a high-throughput screening (HTS) process embedded with AI technology

6 2
In silico/ In-vitro/
on-the-chip ‘wet lab’
simulations experiments
5
3

1. High-throughput screen commenced with diverse
compound sets
Scientist selects diverse compound sets (a set of
chemical compounds with a wide range of chemical
structures) as first high-throughput screen
5. Compound library inferencing and prioritization
ML algorithm then scans the remainder of the library
compounds and predicts which plates should be
prioritized to identify the highest number of hits in the
next screen

2. Automated compound selection and transfer

6. Automated compound selection based on ML
Using HTS machinery, individual compounds are
recommendations
transferred to individual wells of cells under
ML recommendations are automatically queued and
experimental conditions
used in the next round of HTS. The cycle continues,
with the algorithm continuously learning
3. Computer-vision-based hit selection from “real world” outputs. Recommendations trigger
Cell response to each compound is measured using scientists to explore new chemical space and begin
microscope analysis (eg, through computer vision downstream screening processes more quickly. These
techniques); promising compounds are labeled “hits” recommendations feed into the selection of chemical
compounds in step 1
4. Automated machine learning (ML) model training
from screen outcomes
Information from HTS for first few plates is
automatically transferred into an ML pipeline, which
“learns” how cells respond to each kind of chemical
structure

6 AI in biopharma research: A time to focus and scale

 Research systems harness synergies created by
putting AI at the center of the research engine to
enhance the outcome of experiments—instead
of simply being a preparatory step for real-world
experiments in isolation. They act as feedback loops
to refine the predictive capability and stability of AI
algorithms and inform experimental design (for more
key definitions, see sidebar “Glossary of key pharma
AI R&D terms”). An example is “iterative screening”:
results of an initial round of high-throughput
screening8 are used to train a machine learning
(ML) algorithm. The ML algorithm can learn which
underlying compound structures are most effective
against a target and suggest other molecules
in the library to prioritize for testing. As the ML
algorithm gathers more data, its predictions rapidly
become more accurate, and a disproportionately
large number of “hits” are identified for the
relative amount of the library screened. These
research systems reduce overall costs, have higher
probability of success, accelerate R&D processes
(and therefore time to patient impact), and are fully
integrated for specific use cases.
What does it take to successfully
implement AI in biopharma research?
By implementing digital and data science tools and
concepts, biopharma can capture the full value of
current portfolios and develop core technologies,
competences, and IP to drive future research (such
as AI-enabled large-molecule and antibody design).
Current AI-driven drug discovery companies
are already developing their own, significantly

8
High-throughput screening involves thousands to millions of candidate molecules in a compound library being tested against a specific assay
and determined to be effective against a target, or a “hit.”

Glossary of key pharma AI R&D terms

Artificial intelligence/machine learning
Often used interchangeably, AI and
ML have subtly different meanings. A
subset of AI, machine learning refers to
algorithms that improve by design through
the addition of new data. AI describes,
more broadly, a computer system that can
solve problems based on data available
in its environment, in the context of
achieving specific goals.
Deep learning
A subset of machine learning, deep
learning utilizes an artificial neural-
network structure, typically involving a
very large number of parameters to be
calibrated, to identify patterns in large
data sets and subsequently to make
predictions based on this calibrated
neural network.
Molecular property prediction/
iterative screening
An approach at the intersection of
machine learning and drug discovery that
utilizes machine learning approaches to
determine patterns in candidate molecule
structures that predict their likelihood
of being a successful drug candidate.
Typically, in an “iterative screening”
setup, an ML algorithm will be trained
based on historic screening experiments
and will predict which of the remaining
compounds in the screening library are
likely to be hits; as further batches of
experiments are conducted, the algorithm
increases its precision and predictive
power. The algorithms learn from both
successful and unsuccessful predictions.
Knowledge graphs
A type of database that integrates data
from multiple sources and creates
links across them, typically in the same
domain (for example, drug discovery).
Data is organized in accordance with an
ontology—a web of concepts, including the
codified relationships between concepts—
and its controlled vocabulary. Knowledge
graphs can be used to infer connections
across multiple data sources, including link
prediction and insight generation.
DataOps/MLOps
DataOps (data operations) is an automated,
process-oriented methodology used
by analytics and data teams to improve
quality and reduce the cycle time
of advanced analytics. MLOps (ML
operations) refers to software engineering
practices applied to IT operations (for
example, packaging and deploying
production software) in the context of
machine learning and artificial intelligence.

AI in biopharma research: A time to focus and scale 7

 Biopharma companies can develop
a top-down, C-level strategy, setting
out the ways in which AI-enabled
discovery will be a critical enabler of
future performance.
more cost-efficient drug discovery pipelines, so
it would be beneficial for established players to
identify how they, too, can fully integrate novel
technologies into standard research processes.
While partnering is one option—where it provides
access to data, technology, and talent, and the risk
of partners exploiting a company’s IP to become
a future competitor in the medium to long term is
low—marquee partnerships cannot be the only way
to develop in-house drug discovery capabilities. As
such, it is critical for biopharma companies to work
out how to shift from investing in nonintegrated,
lighthouse use cases or partnerships to making AI
an integral part of everyday research. With this in
mind, here are four areas to consider:
1. Strategy and design-backed road-mapping.
Biopharma companies can develop a top-down,
C-level strategy, setting out the ways in which
AI-enabled discovery will be a critical enabler of
future performance. A significant aspect is to
understand where the current organizational pain
points lie, what the potential gains could be, and
where the organization wants to lead the industry
(versus only being competitive) in the context
of how the space/competitors are expected to
move in the future. This strategy needs to be
specific, time-bound, linked to value at stake, and
have strong alignment among (and sponsorship
from) senior leaders—including the heads of
R&D, research, and data science. Underpinning
this strategy is the need for sufficient resources
(balanced across talent, data, and infrastructure
8 AI in biopharma research: A time to focus and scale
investment) to support the capability building
and talent acquisition required to make it a
reality, or recognition of the trade-offs on IP
and capability building if only pursuing external
partnerships. Alignment between R&D and
digital functions is paramount to ensure balanced
co-investment (financial and management time)
and for the impact generated from initiatives
to be shared appropriately. In addition, it is
important to carefully consider which elements of
the AI-enabled drug discovery approach will be
supported by partnerships versus built in-house.
We recommend a design thinking approach to
determine which parts of discovery research to
tackle, and in which order. This involves studying,
end-to-end, common research processes,
where there may be two to three steps that are
bottlenecks for researchers, and which could
be significantly unlocked via AI—for example,
automated image analysis for critical cell assays
or lead optimization. Design thinking could help
companies determine which areas could benefit
most from AI, the implementation road map, and
the success indicators to track progress and
impact (for example, time from target identification
to candidate selection, costs associated with
target identification).
For R&D and data science leaders, the focus should
not be solely on advanced-analytics use cases:
there is significant value in cracking established
problems, with applications such as basic
 automation using data transformation pipelines
(such as dose response curve fitting), digital
operational dashboards, or building data platforms
and infrastructure (such as knowledge graphs).
For example, building a single data platform
for all preclinical data generated can prevent
experimental duplication and enhance data sharing
across the organization—our experience shows
this can reduce months of hypothesis generation
time to a few days. The impact includes dramatically
increased speed, freeing up people for more
productive tasks, and increasing quality of analyses. — Adoption and scaling (including change
2. Relentless value delivery focused on quarterly
value releases (QVRs). It is critical that R&D, data
science, and data engineering collaborate closely
and iterate on delivery of use cases in an agile way.
The research process frequently includes specific
constraints and ways of working (such as steps
and hand offs in the experimental methodology)
that need to be accounted for to ensure uptake
of the tools and systems that are built (in addition
to updating scientific processes and standard
operating procedures and introducing financial
and performance-based incentives). To consider
AI-enablement delivery holistically, leaders can line departing from long-term road maps delivering
up key building blocks, as in this specific example
focused on “high-throughput screening”:
— Blueprinting. Develop a list of use cases across
the value chain, prioritizing according to impact, organizational needs. This approach enables AI use-
complexity, and business value; then select the
highest-need use cases.
— Digital and analytics solutions. Build and
automate screening algorithms that link
molecular descriptors (for example, molecule
structure in the form of a SMILES string) with
9
desired output, or a hit.
— Data continuum. Collect experimental data in
a reusable way (for instance, with FAIR-data
principles10); build master tables from equipment deliver potentially groundbreaking discoveries with
and existing libraries.
— Tech capabilities. Design and build technical
infrastructure and data architecture for data
extraction and automated gathering.
— Talent and agile operating model. Coach data
science, data engineering, and translator/
product owners on tools and delivery
methodologies, iteratively testing and
learning to deliver products via a collaborative
environment.
management). Design new screening protocols
and experimental strategy, incorporating
ML-based algorithms. Ensure the whole
research organization (from leaders to lab
technicians) understands what the company is
trying to achieve and how daily activities need
to change.
Once key AI-enabled use cases are aligned, delivery
must be highly organized so as to demonstrate
ongoing impact; core requirements and potential
synergies must be identified and gaps in ongoing
cross-cutting road maps identified. This means
impact in multiyear cycles to focus on QVRs (which
produce measurable value after each quarterly
sprint, such as AI-enablement of a scientific
process) while continuously reprioritizing based on
case development to be built more efficiently—by
dynamically front-loading priority data ingestion
and team capacity—with mission-critical assets
deployed as required (Exhibit 4).
All core digital processes in research can be
delivered with incremental quarterly delivery;
however, the nature of “value” delivery may vary.
Moonshot programs (in tech, this could be the
advent of AlphaFold11) require long-term road maps
and typically a dedicated ML research group to
impact in biopharma. Such programs may not deliver
an AI product every quarter such as other digital

9
SMILES refers to simplified molecular-input line-entry system.
10
FAIR refers to findable, accessible, interoperable, and reusable.
11
AlphaFold is an AI system developed by DeepMind that predicts a protein’s 3-D structure from its amino-acid sequence.

AI in biopharma research: A time to focus and scale 9

 Web 2022
AiBiopharmaResearch
Exhibit 4 of 4
Exhibit 4
Moving from
Moving from parallel
parallelprocesses to quarterly
processes to quarterly value
value releases touching all
releases touching all six
six
‘building blocks’ of an analytics build with links to impact.
‘building blocks’ of an analytics build with links to impact.
Illustration of holistic AI-enablement value delivery focused on Digital delivery
quarterly value releases (QVRs)

Nonoptimized AI-enablement delivery Optimized digital delivery

Parallel programs of foundational efforts, with minimal Program links all horizontals via releases, touching all
linkages between a subset of 6 “building blocks” of 6 “building blocks” of an analytics build; links from
analytics builds, where not all blocks may be considered; QVR to impact through scientific/business flows
no explicit link to business/scientific flows and impact
Value release
Value release happens quarterly
Blueprint mostly at the end Blueprint
of each horizontal QVR1 QVR2 QVR3
Digital/ Digital/
analytics analytics

Data Data

Technical Technical
capability capability

Capability Capability
building/agile building/agile

Adoption and Adoption and

scaling scaling

initiatives, but an insight, report, or decision should
still be delivered on a regular basis.
3. IP, capability building, and developing translation
expertise through partnerships. While there is
certainly evidence for the benefits of partnership
in specific areas, including to access unique
technologies, data, or solution types, managing
these partnerships exclusively at arm’s length and
keeping novel methods or solutions separate from
day-to-day research mean that necessary future
capabilities for a transformation in drug discovery
may not be built.
Biopharma companies should be selective and
specific about the capabilities to be delivered by
partnerships versus those built in-house. Similarly, a
balanced approach to in-house and external talent
(notably, the data scientists and data engineers
needed to work with researchers in developing the
algorithms and technology backbones to support
prioritized areas) is vital. Often overlooked but
mission critical for AI enablement, are “translators”
or “product owners” with deep business, clinical,
scientific, and AI/ML and systems architecture
understanding. These profiles have a product
ownership mindset and understand and dynamically
evaluate all elements of the analytics team to
maintain focus on value and impact delivery, thereby
assuring successful project delivery.
4. Industrialization of AI with MLOps and reusable
analytical assets. For the capabilities a biopharma
company builds in-house, it is essential to have
the right enablers in place to support scaling
across research activities: the right technology

10 AI in biopharma research: A time to focus and scale


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infrastructure and methodologies, especially
DataOps and MLOps and an appropriate data
architecture (for example, graph databases or Data
Vault 2.0 technology). DataOps (data operations)
enables companies to gain more value from their
data by accelerating the process of building models.
MLOps involves ensuring the right platforms, tools,
services, and roles with the right team operating
model and standards for delivering AI reliably and
at scale. Technical-architecture enablers to support
processing compute-intensive workflows such
as AlphaFold, molecular-dynamics simulations,
optimization models, and image-recognition
workflows are a core requirement. Furthermore,
enabling concepts such as Data Vault 2.0
techniques and graph databases are table stakes as
AI capabilities scale.
To successfully deploy research systems,
development teams must build multiple interrelated
components (data connectors and pipelines,
models, APIs, and visual interfaces) that work
seamlessly to drive adoption among end users.
Fragmentation of code bases and components, and
reduced productivity due to integration challenges,
are natural risks that arise when multiple tools are
deployed across different domains and teams.
Ensuring coding standards in development and
harmonization of coding approaches across teams
increases long-term productivity and solution
robustness. Additionally, harmonization enables
sharing of reusable components (data connectors,
feature libraries, model-based embeddings)
across projects: for example, using graph neural-
network molecular embeddings for hit prediction
and lead optimization for toxicity reduction. As the
emerging research platform grows in complexity,
“assetization” of reusable components becomes
an increasingly important source of development
productivity (with twice the productivity for teams
that embrace it) and an important in-house
capability that requires a dedicated team with a
product-centered mindset.12
The question today is whether biopharma
companies will move analytics investments
beyond a focus on individual projects and
marquee partnerships to transforming research
at scale. A shift to focusing on specific scientific
and operational pain points and building AI into
fully integrated research systems—with a road
map to scale—will enable biopharma companies
to capture real business and patient impact from
using AI in research.

Alex Devereson is a partner in McKinsey’s London office, where Matej Macak is an associate partner and Navraj Nagra is a
consultant; Erwin Idoux is a consultant in the Paris office; and Erika Stanzl is an associate partner in the Zurich office.

The authors wish to thank Jeffrey Algazy, Christoforos Anagnostopoulos, Joachim Bleys, David Champagne, Thomas
Devenyns, Bryan Lee, Rachel Moss, Michael Steinmann, and Lieven Van der Veken for their contributions to this article.

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Industrialization of AI with MLOps is one of 14 foremost trends identified by the McKinsey Technology Council. For more information, see
Michael Chui, Roger Roberts, and Lareina Yee, “McKinsey Technology Trends Outlook 2022,” August 24, 2022.

AI in biopharma research: A time to focus and scale 11