Artificial intelligence (AI) will fundamentally reshape how companies operate in the Life Sciences industry. In this blog post, our experts delve into the existing regulatory challenges and the emerging role of AI in pharmaceutical governance and ethics – from the Biden administration’s dedication to AI safety, to the implications of the EU AI Act and the use of AI in the operational activities of specific functions like Early Discovery, Clinical Operations, Regulatory Affairs, Market Access/Pricing, Safety/Pharmacovigilance, Medical Affairs, Marketing, Manufacturing & Quality and Supply Chain.
Current activities and processes encounter challenges that demand a nuanced approach and strategic thinking. Hot topics include the governance and ethical concerns in the wake of the rapid rise of AI and Machine Learning (ML) in the mainstream. The ethical considerations revolve around the responsible use of these technologies in decision-making and the need to ensure transparency and accountability. Additionally, the healthcare industry faces the critical challenges of ensuring supply chain sustainability, dealing with geopolitical shifts and adapting to the digital transformation of data. The imperative to digitise data – rather than merely streamlining processes – introduces concerns with regard to data accuracy, security and privacy. Furthermore, the healthcare sector is increasingly aligning with the principles of the green and circular economy, with the emphasis on sustainable practices from product development to administration to patients. Balancing innovation with ethical considerations and sustainable practices is an ongoing challenge that demands harmonious integration of regulatory frameworks and industry best practices.
Regulators and legislators are navigating the landscape of AI in the healthcare sector with a strategic and proactive approach, while recognising the potential risks. In the United States, the Biden administration is launching a dedicated federal organisation dedicated to assessing the safety of AI. Operating under the National Institute of Standards and Technology (NIST), this organisation is set to play an important role in developing guidance for regulatory rulemaking and enforcement methods. Meanwhile, across the Atlantic, the European Union (EU) has taken a significant step towards the regulation of AI with the EU AI Act. This legislation defines AI systems with high risk to the health and safety or fundamental rights of natural persons, while mandating conformity assessments, risk management and human oversight. AI applications with particular relevance for the pharmaceutical industry include those relating to drug development, clinical trials, pharmacovigilance etc. Moreover, the EU AI Act supports the establishment of a European Health Data Space, which will facilitate the access and use of health data for AI training and innovation while ensuring data security and privacy. The European Medicines Agency (EMA) and Heads of Medicines Agencies have launched a joint AI workplan to 2028, outlining a strategy to harness AI for medicines while mitigating the risks. The workplan covers four key areas: guidance, policy and product support; AI tools and technology; collaboration and training; and experimentation.1
Looking at the EU’s pharmaceutical legislation reform, the EMA should be able to capitalise on AI to improve decision-making in the regulatory process. For example, as outlined in Paragraph 60 of the proposed regulation for union procedures for the authorisation and supervision of medicinal products for human use, the EMA could support its judgement with the analysis of health data including real world data (RWE). The vast volume of data generated by the healthcare industry could undergo processing and utilisation through AI and ML algorithms, marking a strategic step towards regulatory practices that are more informed and driven by data.
AI offers numerous opportunities to streamline activities and processes in Life Sciences, revolutionising key aspects of the industry.
Let’s explore some practical applications:
The potential benefits of AI are as follows:
In order to build an AI use case for regulatory functions, it is crucial to consider several key aspects, such as:
Despite the promises of AI, the following challenges need to be addressed by regulators, legislators and the industry to ensure safe and equitable use of such solutions:
AI opens new doors for the healthcare sector. The transformative potential is enormous, with opportunities to enhance efficiency and decision-making. However, vigilance is key and a keen eye must be kept on addressing biases and the ever-changing regulatory frameworks and the safeguarding of patient data privacy. PwC, as a pioneer in AI consulting, is introducing a tailored accelerator programme to empower life sciences companies in harnessing AI for sustainable results. It’s not just about adopting AI – it’s about unleashing its true potential to improve the lives of patients and solve important problems in the healthcare sector.
We would be more than happy to further discuss the AI strategy for your Pharma & Life Science company with you in person. Please don’t hesitate to contact us.
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Dr Sandra Ragaz-Fumia
Partner, Leader Pharma & Life Science – International Indirect Tax & ReguIatory, PwC Switzerland
+41 79 792 72 98
Fatih Sahin
Director, Pharma & Life Sciences – International Indirect Tax & Regulatory, PwC Switzerland
+41 58 792 93 08
Dominik Hofstetter