GenAI adoption in India’s pharma sector signals operational shifts

Generative AI (GenAI) is being integrated into India’s pharmaceutical and healthcare sectors, according to EY’s report, How much productivity can GenAI unlock in India? The AIdea of India: 2025. The study outlines GenAI’s role in enhancing operational efficiency, optimising manufacturing, and streamlining supply chains.

The report states that 50 per cent of pharma companies in India have initiated GenAI proof-of-concept projects, with 25 per cent implementing AI solutions in production. Among healthcare organisations, 66 per cent have begun testing AI applications. These developments are influencing pharmaceutical operations by improving research and development (R&D), manufacturing processes, and regulatory compliance.

GenAI is being applied to multiple functions in pharmaceutical companies. The report highlights that 50 per cent of these companies are focusing on AI-driven customer service, manufacturing, supply chain, and operations, while 25 per cent are prioritising procurement. These applications are linked to increased cost efficiencies, with 75 per cent of surveyed pharmaceutical firms reporting cost reductions and improved customer satisfaction.

Kaivaan Movdawalla, National Healthcare Leader, EY-Parthenon India, stated, “GenAI is reshaping India’s healthcare landscape by driving efficiency, enhancing patient outcomes, and improving financial sustainability. With 66 per cent of healthcare firms already piloting GenAI, we are seeing significant traction in areas like medical documentation, diagnostics, and revenue cycle management. As adoption scales, GenAI will play a crucial role in expanding healthcare access, especially in underserved regions, and optimising operational efficiencies.”

Suresh Subramanian, National Lifesciences Leader, EY-Parthenon India, added, “The pharma industry is rapidly embracing GenAI, with 50 per cent of firms already investing in or exploring AI-driven solutions. From R&D acceleration and manufacturing optimisation to supply chain resilience and commercial insights, GenAI is revolutionising operations. In fact, an EY-led GenAI transformation programme for a global pharmaceutical company demonstrated a potential 14 per cent incremental growth in EBITDA, underscoring the tangible financial impact of AI adoption in the sector. As the industry scales its AI efforts, a structured approach—combining investment in infrastructure, responsible AI practices, and workforce upskilling—will be key to unlocking GenAI’s full potential.”

Projected impact on productivity

The EY study estimates that by 2030, GenAI could improve productivity in pharmaceutical and healthcare industries by 30 per cent to 40 per cent. The research, which analysed more than 450 roles, highlights specific areas of transformation. In pharmaceutical operations, AI-driven advancements in sales (40 per cent), supply chain management (38 per cent), and production (35 per cent) are expected to contribute to efficiency gains.

Current applications in pharma 

The report outlines existing use cases where GenAI is already being deployed. In pharmaceutical R&D, AI-assisted tools are expediting drug discovery and regulatory submissions. AI-driven analytics are also being used in commercial operations, enabling sales teams to assess market trends and develop targeted data-driven strategies.

Manufacturing applications include AI-enabled process optimisation tools such as Golden Batch Analytics, which monitor production parameters and improve quality control. In healthcare, GenAI is being used to streamline revenue cycle management, automate clinical documentation, and facilitate patient engagement through AI-powered chatbots.

Challenges in AI adoption

The adoption of GenAI in pharmaceutical and healthcare sectors faces several challenges. Regulatory compliance and data privacy concerns remain key barriers due to the sensitive nature of medical and patient information. Many healthcare and pharmaceutical organisations rely on legacy IT infrastructure that requires modernisation to support AI-driven solutions.

The report also identifies a shortage of skilled AI professionals as a constraint to widespread adoption. EY recommends investment in AI talent, responsible AI governance, and collaboration between industry stakeholders, technology providers, and regulators to address these challenges.

Future outlook

The report suggests that scaling AI initiatives and overcoming adoption challenges will be critical for pharmaceutical and healthcare companies to maximise GenAI’s potential. The findings indicate that structured AI implementation, combined with regulatory alignment and workforce training, will determine the pace of AI-driven transformation in India’s pharma and healthcare industries.