Pharmaceutical companies are grappling with widespread uncertainty over artificial intelligence investments after research revealed that 95 per cent of generative AI projects have produced zero returns, whilst less than 30 per cent of AI leaders report their CEOs are satisfied with investment outcomes.
The findings emerge from MIT Media Lab research and Gartner analysis, indicating that generative AI has entered the “Trough of Disillusionment” phase, signalling widespread dissatisfaction with the technology’s business impact. Margaret Difilippo, Zifo’s Head of Commercial in North America, who brings nearly 35 years of experience in the biopharma industry, highlighted the growing executive anxiety during industry discussions.
“I think right now there’s a lot of anxiety and uncertainty, especially in large pharma when it comes to how best to make use of AI,” said Difilippo. The anxiety extends beyond technology adoption to organisational upheaval, with many VP-level executives being replaced and budgets frozen during leadership transitions.
The pharmaceutical sector faces particular resistance to AI adoption due to regulatory compliance requirements and established workflows. Scientists often resist changing systems that have functioned effectively for decades, particularly in manufacturing environments governed by GxP and GMP regulations, where LIMS systems typically remain unchanged for over 10 years.
Power dynamics between IT departments and scientific teams further complicate technology decisions. Difilippo’s industry observations suggest an even 50-50 split between organisations where IT holds decision-making authority versus those where scientists control technology choices.
Fear of job displacement represents a significant barrier to AI adoption, alongside concerns about data integrity in clinical environments. However, successful implementations occur when organisations demonstrate clear value propositions and involve scientific staff in solution development rather than imposing technology changes.
“People will only make a change if they see value in it, and it’s up to the entire organisation to demonstrate that value,” Difilippo explained.
Despite current challenges, industry leaders expect AI integration to accelerate through education and quick-win demonstrations. “AI is not going away. I believe that organisations are now in the process of essentially trying to accelerate the deployment of AI and are doing more on education and enablement,” said Difilippo.
The pharmaceutical industry’s digital transformation lags significantly behind sectors like banking and finance, partly due to regulatory constraints and risk-averse cultures. However, pressure to break down data silos and achieve competitive advantages is driving gradual adoption of cloud-based research platforms, though manufacturing operations often remain on-premise.
