1 Table of Contents 1 Table of Contents 4 1.1 List of Tables 7 1.2 List of Figures 7 2 Overview of Artificial Intelligence Technologies 9 2.1 Current and Future Value of Global Artificial Intelligence Market 9 2.2 What is Artificial Intelligence? 9 2.2.1 Machine Learning 10 2.2.2 Algorithms 13 2.2.3 Data Sharing Platforms 13 2.2.4 Future Considerations 14 3 Artificial Intelligence in the Healthcare and Pharmaceutical Industries 15 3.1 Overview of Artificial Intelligence in the Pharmaceutical and Healthcare Industries 15 3.2 Services Benefitting From Artificial Intelligence Technologies within the Healthcare and Pharmamceutical Sectors 15 3.3 Key Objectives of Artificial Intelligence Technologies within Healthcare and Pharmaceuticals? 16 3.4 Key Stakeholders in the Funding and Provision of Artificial Intelligence Technologies 17 3.4.1 Payers 18 3.4.2 Financial intermediaries 18 3.4.3 Providers 18 3.4.4 Purchasers 18 3.4.5 Producers 19 3.4.6 Information Technology 19 3.5 Key Market Segments 19 3.5.1 Artificial Intelligence Technology Companies 19 3.5.2 Pharmaceutical and Medical Devices Industries 20 3.5.3 Healthcare Professionals and Providers 20 3.5.4 Regulatory Bodies 20 3.5.5 Consumers 21 3.6 How Prevalent is the Use of AI Technology by Healthcare Organizations? Industry Survey Results 22 4 Key Drivers and Restraints for Artificial Intelligence within the Healthcare and Pharmaceutical Sectors 24 4.1 Key Drivers in the Global Artificial Intelligence Healthcare and Pharmaceutical Markets - Industry Survey Results 24 4.1.1 Need for More Cost-Effective Methods in Drug Development and R&D 25 4.1.2 Increased Need to Demonstrate Value and Effectiveness of Therapies 26 4.1.3 Unmet Clinical Needs that Conventional Approaches Failed to Address 27 4.1.4 Increasing Processing Power and Decreasing Costs Associated with Artificial Intelligence Technology 28 4.1.5 Increasing Demand for Products and Services Due to an Ageing Population 29 4.1.6 Increased Need to Reduce the Imbalance between Healthcare Services and Patient Demand 29 4.1.7 Increased Need for Cross-Sector Partnerships 30 4.1.8 Other Important Growth Drivers in the Artificial Intelligence Market in 2018 31 4.2 Key Restraints in the Global Artificial Intelligence Healthcare and Pharmaceutical Markets - Industry Survey Results 32 4.2.1 Concerns Regarding Data Security and Privacy 33 4.2.2 Reluctance of Healthcare Practitioners to Adopt New Technologies 34 4.2.3 Unclear Regulatory and Legal Frameworks Surrounding the Use of Artificial Intelligence 35 4.2.4 Lack of Curated Healthcare Data and Associated Infrastructure 36 4.2.5 Shortage of IT Skills within the Healthcare Industry 36 4.2.6 Difficulty in Deployment of Artificial Intelligence Technologies 37 4.2.7 High Initial Capital Requirement 37 4.2.8 Patented Artificial Intelligence Technologies 38 5 Opportunities for Artificial Intelligence within the Healthcare and Pharmaceutical Industries 39 5.1 Current Roles of Artificial Intelligence in the Pharmaceutical and Healthcare Industries 39 5.2 Artificial Intelligence Opportunities in the Pharmaceutical Industry 41 5.2.1 Artificial Intelligence in Drug Discovery and Preclinical Development 41 5.2.2 Artificial Intelligence in Clinical Trials: Optimizing Study Design and Patient Recruitment 45 5.2.3 Opportunities for Artificial Intelligence beyond R&D: Pharmacovigilance, Manufacturing and Marketing 48 5.2.4 Concluding Remarks: Artificial Intelligence Benefits from Discovery to Marketing 50 5.3 Artificial Intelligence Opportunities in the Healthcare Industry 50 5.3.1 Personalized Medicine, Monitoring and Management 51 5.3.2 Diagnostics 54 5.3.3 Epidemiological Forecasting 56 5.3.4 Big Data 57 5.3.5 Concluding Remarks - Big Data May decide the Future of the Industry 57 6 Key Players and Strategic Consolidations within the Artificial Intelligence Healthcare and Pharmaceutial Landscape 59 6.1 Strategic Consolidations Landscape 59 6.1.1 Investment and Partnerships 59 6.1.2 Co-development Deals 59 6.1.3 Licensing Deals 63 6.1.4 Investors 64 6.2 The Company Landscape 65 6.2.1 Large Pharmaceutical Companies 65 6.2.2 Large Technology Firms with Vested Healthcare Interests 69 6.2.3 Artificial Intelligence Start-Ups 71 7 Conclusions and Future Outlook for AI Technologies 79 7.1 The Greatest Positive Impact will be Seen in Personalized Medicine in the Next Five Years 80 7.2 Some 67% of Survey Respondents are Likely to Increase their Investments within Artificial Intelligence Technologies in the Next Five Years 81 7.3 Which Regions Will Receive the Highest Investments in Artificial Intelligence in the Next Five Years? Industry Survey Results 82 7.4 What Are the Main Concerns for Companies Looking to Invest in Artificial Intelligence? Industry Survey Results 83 7.5 What Are the Regional Concerns for Companies Looking to Invest in Artificial Intelligence? Industry Survey Results 84 8 Appendix 86 8.1 GBI Industry Survey: Breakdown of Respondents by Industry 86 8.2 GBI Industry Survey: Breakdown of Respondents by Region 86 8.3 GBI Industry Survey: Proportion of Organizations that are Currently Involved with Artificial Intelligence Technologies 87 8.4 GBI Industry Survey: Most Important Factors Driving Growth in the Artificial Intelligence Market 87 8.5 GBI Industry Survey: Main Factors Restraining Growth in the Artificial Intelligence Market 88 8.6 GBI Industry Survey: Most Common Areas Where Artificial Intelligence Solutions are Used in the Pharmaceutical Industry 88 8.7 GBI Industry Survey: Most Common Areas Where Artificial Intelligence Solutions are Used in the Healthcare Industry 89 8.8 GBI Industry Survey: Areas of the Pharmaceutical Industry That Will See the Greatest Benefits from Artificial Intelligence Implementation 89 8.9 GBI Industry Survey: Areas of the Healthcare Industry That Will See the Greatest Benefits From Artificial Intelligence Implementation 90 8.10 GBI Industry Survey: The Area in which AI Technology Will Have the Greatest Positive Impact in the Healthcare Landscape over the Next Five Years 90 8.11 GBI Industry Survey: Likelihood of Organizations Involved with Artificial Intelligence Increasing Investments in the Sector (%), 2018-2023 91 8.12 GBI Industry Survey: Likelihood of Organizations Involved with Artificial Intelligence Increasing Investments in the Sector (%), 2018-2023, North American Panel vs. European Panel vs. Asian Panel 91 8.13 GBI Industry Survey: Main Concerns for Organizations When Investing in Artificial Intelligence Technologies, 2018-2023 92 8.14 GBI Industry Survey: Main Concerns for Organizations When Investing in Artificial Intelligence Technologies, North American Panel vs. European Panel vs. Asian Panel 92 8.15 References 93 8.16 Abbreviations List 103 8.17 Report Methodology 104 8.18 About GBI Research 104

1.1 List of Tables Table 1: Artificial Intelligence Technologies, Machine Learning in the Healthcare Industry, 2018 12 Table 2: Artificial intelligence Technologies, Examples of Artificial Intelligence Programs in Development , 2018 16 Table 3: Artificial Intelligence Technologies, Johnson & Johnson Collaborations, 2018 65 Table 4: Artificial Intelligence Technologies, Roche Collaborations, 2018 66 Table 5: Artificial Intelligence Technologies, Pfizer Collaborations, 2018 67 Table 6: Artificial Intelligence Technologies, Novartis Collaborations, 2018 67 Table 7: Artificial Intelligence Technologies, Sanofi Collaborations, 2018 68 Table 8: Artificial Intelligence Technologies, List of AI Start-up Companies (Part 1), 2018 71 Table 9: Artificial Intelligence Technologies, List of Artificial Intelligence Start-up Companies (Part 2), 2018 73 Table 10: Artificial Intelligence Technologies, List of AI Start-up Companies (Part 3), 2018 75 Table 11: Artificial Intelligence Companies, List of AI Start-up Companies (Part 4), 2018 77 1.2 List of Figures Figure 1: Artificial Intelligence Technologies, Main Divisions and Examples of Artificial Intelligence, 2018 10 Figure 2: Artificial Intelligence Technologies, Applications of Artificial Intelligence in the Healthcare Space, 2018 15 Figure 3: Artificial Intelligence Technologies, Key Stakeholders in the Provision of Funding to Drive Artificial Intelligence in Healthcare, 2018 18 Figure 4: Artificial Intelligence Technologies, Key Market Segments in the Artificial Intelligence Market Space, 2018 19 Figure 5: Artificial Intelligence Technologies, GBI Research Industry Survey, Breakdown of Respondents by Industry, 2018 22 Figure 6: Artificial Intelligence Technologies, Breakdown of Respondents by Region, 2018 22 Figure 7: Artificial Intelligence Technologies, GBI Research Industry Survey, Proportion of Respondents Currently Involved with Artificial Intelligence, 2018 23 Figure 8: Artificial Intelligence Technologies, GBI Research Industry Survey, Most Important Factors Driving Growth in the Artificial Intelligence Healthcare and Pharmaceutical Markets, 2018 24 Figure 9: Artificial Intelligence, GBI Research Industry Survey, Most Important Factors Restraining Growth in the Artificial Intelligence Healthcare and Pharmaceutical Markets, 2018 32 Figure 10: Artificial Intelligence Technologies, GBI Research Industry Survey, Areas of the Pharmaceutical Industry Artificial Intelligence Technologies are Currently Implemented In, Panel of Organizations Implementing Artificial Intelligence Solutions, 2018 39 Figure 11: Artificial Intelligence Technologies, GBI Research Industry Survey, Areas of the Healthcare Industry Artificial Intelligence Technologies are Currently Implemented In, Panel of Organizations Implementing Artificial Intelligence Solutions, 2018 40 Figure 12: Artificial Intelligence Technologies, GBI Research Industry Survey, Areas of the Pharmaceutical Industry Artificial Intelligence Technologies Will Demonstrate the Greatest Benefits, 2018 41 Figure 13: Artificial Intelligence Technologies, Representative Companies Deploying Artificial Intelligence in the Drug Discovery Space, 2018 43 Figure 14: Artificial Intelligence Technologies, Representative Companies Deploying Artificial Intelligence in the Clinical Trial Space, 2018 46 Figure 15: Artificial Intelligence Technologies, GBI Research Industry Survey, Areas of the Healthcare Industry Artificial Intelligence Technologies Will Serve the Greatest Benefit, 2018 51 Figure 16: Artificial Intelligence Technologies, Creating the Personalized Artificial Intelligence Approach to Healthcare Management, 2018 52 Figure 17: Artificial Intelligence Technologies, Co-development Deals by Company, 2018 (Part 1) 61 Figure 18: Artificial Intelligence Technologies, Co-development Deals by Company (Part 2), 2018 62 Figure 19: Artificial Intelligence Technologies, Co-development Deals by Company (Part 3), 2018 63 Figure 20: Artificial Intelligence Technologies, Licensing Deals by Company, 2018 64 Figure 21: Artificial Intelligence Technologies, GBI Industry Survey, Opinion of Surveyed Organizations on Which Area of Industry Will See the Greatest Positive Impact Following AI Investment, 2018-2023 80 Figure 22: Artificial Intelligence Technologies, GBI Industry Survey, Organizations Already Involved with Artificial Intelligence, Likelihood of Surveyed Organizations Increasing Investment in the Sector (%), 2018-2023 81 Figure 23: Artificial Intelligence Technologies, GBI Industry Survey, Organizations Already Involved with Artificial Intelligence, Likelihood of Surveyed Organizations Increasing Investment in the Sector (%), 2018-2023 82 Figure 24: Artificial Intelligence Technologies, GBI Industry Survey, Things Concerning Organizations when Investing in Artificial Intelligence Technology, 2018 83 Figure 25: Artificial Intelligence Technologies, GBI Industry Survey, Things Concerning Organizations when Investing in Artificial Intelligence Technology, By Region 2018 84 Figure 26: Artificial Intelligence Technologies, GBI Industry Survey: Breakdown of Respondents by Industry, 2018 86 Figure 27: Artificial Intelligence, GBI Industry Survey: Breakdown of Respondents by Region, 2018 86 Figure 28: Artificial Intelligence Technologies, GBI Industry Survey: Proportion of Organizations that are Currently Involved with Artificial Intelligence Technologies, 2018 87 Figure 29: Artificial Intelligence Technologies, GBI Industry Survey: Most Important Factors Driving Growth in the Artificial Intelligence Market, 2018 87 Figure 30: Artificial Intelligence Technologies, GBI Industry Survey: Main Factors Restraining Growth in the Artificial Intelligence Market, 2018 88 Figure 31: Artificial Intelligence Technologies, GBI Research Industry Survey, Areas of the Pharmaceutical Industry Artificial Intelligence Technologies are Currently Implemented In, Panel of Organizations Implementing Artificial Intelligence Solutions, 2018 88 Figure 32: Artificial Intelligence Technologies, GBI Research Industry Survey, Areas of the Healthcare Industry Artificial Intelligence Technologies are Currently Implemented In, Panel of Organizations Implementing Artificial Intelligence Solutions, 2018 89 Figure 33: Artificial Intelligence Technologies, GBI Research Industry Survey, Areas of the Pharmaceutical Industry Artificial Intelligence Technologies Will Demonstrate the Greatest Benefits, 2018 89 Figure 34: Artificial Intelligence Technologies, GBI Research Industry Survey, Areas of the Healthcare Industry Artificial Intelligence Technologies Will Serve the Greatest Benefit, 2018 90 Figure 35: Artificial Intelligence Technologies, GBI Industry Survey, Opinion of Surveyed Organizations on Which Area of Industry Will See the Greatest Positive Impact Following AI Investment, 2018-2023 90 Figure 36: Artificial Intelligence Technologies, GBI Industry Survey, Organizations Already Involved with Artificial Intelligence, Likelihood of Surveyed Organizations Increasing Investment in the Sector (%), 2018-2023 91 Figure 37: Artificial Intelligence Technologies, GBI Industry Survey, Organizations Already Involved with Artificial Intelligence, Likelihood of Surveyed Organizations Increasing Investment in the Sector (%), 2018-2023 91 Figure 38: Artificial Intelligence Technologies, GBI Industry Survey, Reasons Concerning Organizations when Investing in Artificial Intelligence Technology, 2018 92 Figure 39: Artificial Intelligence Technologies, GBI Industry Survey: Main Concerns for Organizations When Investing in Artificial Intelligence Technologies, 2018 92