Director of Global Healthcare & Life Sciences Industry Strategy at Google Cloud.

Shweta Maniar, Google Cloud

The COVID-19 pandemic highlighted our supply chains’ weaknesses like never before. A sudden surge in demand and limited production capabilities led to critical shortages of medical supplies, pharmaceuticals, and even basic consumer goods. For life sciences, this disruption wasn’t just a matter of lost revenue—it was a matter of life and death. In this high-stakes industry, we need systems that adapt, predict, and respond to change faster than ever before.

At the same time, the manufacturing sector is facing another growing challenge: a shortage of skilled labor. Many life sciences manufacturers struggle to fill critical roles, from production technicians to quality control specialists, putting even more pressure on a strained supply chain.

This is where generative artificial intelligence (GenAI) emerges as a transformative force. GenAI offers the tools to bridge the talent gap, serve as a knowledge base for manufacturing teams, and help stabilize production by optimizing processes, predicting disruptions, and ensuring the consistent delivery of life-saving treatments. But its impact isn’t theoretical; it’s measurable and already reshaping the industry.

The pandemic taught us that being reactive isn’t enough. To avoid catastrophic disruptions, we need proactive tools that allow for real-time adjustments. GenAI provides precisely this, enabling companies to model scenarios, forecast potential disruptions, and adjust production plans based on real-time factors. For example, a pharmaceutical company producing a critical diabetes medication in a hurricane-prone region could use GenAI to analyze historical weather patterns, including hurricane data, and predict potential disruptions to their raw material supply. The system could then recommend alternative sourcing options or suggest increasing production aheavd of hurricane season to build a safety stock. The power of GenAI lies in its ability to analyze enormous datasets, from weather patterns to geopolitical events, and predict supply chain impacts before they even occur.

In 2020, the estimated global cost of supply chain disruptions reached $4 trillion,

 underscoring the urgent need for resilience. Imagine a future where pharma companies, by analyzing weather data and historical demand, can foresee a delay due to a hurricane and shift manufacturing schedules accordingly. This kind of agility and foresight is what GenAI brings to the table, and it’s increasingly becoming essential in a volatile world.

At first glance, the world of life sciences may seem far removed from consumer goods. But, surprisingly, the challenges in quality control and transparency are strikingly similar. When we buy a product, whether it’s makeup or shoes, we can track its journey from the warehouse to our door. This visibility builds trust and empowers consumers with knowledge about their purchase’s journey.

For life sciences, having clear transparency could be game-changing. Imagine a scenario where patients, providers, and regulators could monitor a medication’s production journey, from raw material sourcing to final quality checks. With GenAI-driven transparency, life sciences companies can create this level of visibility, streamlining compliance and boosting patient confidence. Regulatory bodies also benefit from this clear line of sight, which supports faster, data-driven oversight and enhanced accountability.

GenAI further amplifies quality control, performing visual inspections that detect inconsistencies with greater accuracy than manual methods. It’s a level of detail and precision crucial to life sciences, where the slightest error could have life-altering consequences. For example, in 2021, the FDA flagged almost 1,300 drug quality issues related to production inconsistencies,

 which GenAI-powered quality checks could have minimized or prevented.

Beyond detection, AI can also predict and address quality control challenges by analyzing process deviations and recommending corrective actions in real time. This capability ensures consistent product quality and helps manufacturers comply with stringent regulatory standards.

Generative AI’s impact on life sciences manufacturing is tangible. Here are some ways it’s already transforming the field:

Say goodbye to unexpected equipment breakdowns. 

In traditional manufacturing, unexpected equipment failures can halt production, leading to costly delays. By analyzing process data, GenAI anticipates when machinery needs maintenance, reducing unplanned downtime. This capability is already saving companies millions in preventing disruptions. Imagine a pharma manufacturer using GenAI to monitor their sterile filling line could analyze sensor data (e.g., temperature, pressure, vibration) to predict when a filling nozzle will likely clog. This proactive maintenance approach prevents costly downtime and ensures continuous production of sterile injectables.

 Digital twins, virtual replicas of supply chain networks, enable companies to simulate disruptions and test responses. According to McKinsey & Company, digital twin technology can reduce supply chain costs by 10% and improve product launch success by 20%, making it a powerful tool for life sciences.

GenAI’s ability to analyze patient-specific data is paving the way for highly personalized treatments. Drug formulation, for instance, tailors dosages to optimize patient outcomes, which is especially valuable in chronic disease management where personalized care is essential. GenAI can analyze historical production data, raw material characteristics, and environmental factors within a manufacturing facility to optimize the production process for a specific drug formulation. GenAI ensures consistent quality and higher yields by adjusting parameters such as temperature, mixing speed, or drying time.

Automation of remediation for adverse effects.

 Drugmakers often submit 10,000+ pages of reports on adverse effects to the FDA. GenAI can automate this process, reducing manual effort, improving accuracy, and accelerating regulatory approvals.

GenAI’s promise comes with challenges. The regulatory environment remains complex, as bodies like the FDA establish frameworks to ensure safe and effective AI use. In 2023, the FDA released guidance on AI transparency, signaling that the technology’s growth must be matched by rigorous oversight. Life sciences companies must stay ahead of these changes to implement GenAI responsibly.

Data quality is another critical factor. GenAI’s success depends on reliable, high-quality data, yet a recent McKinsey survey found that more than 60% of companies cite data quality as a major challenge in implementing AI.

 Life sciences organizations need robust data management strategies to fully unlock GenAI’s potential.

Finally, there’s the challenge of a talent gap. GenAI requires a specialized skill set at the intersection of life sciences and data science, and competition for this talent is fierce. Life sciences companies will need to invest in both recruitment and training to build the expertise necessary to leverage GenAI effectively.

The potential of GenAI in life sciences manufacturing is vast. In the future, partnerships between technology providers, healthcare, and life sciences companies will be essential for driving AI innovations forward. Increased collaboration will encourage transparency and data-sharing practices, which are crucial for regulatory support and oversight.

The ongoing talent gap in manufacturing is another factor that will shape AI adoption. As the industry faces a shortage of skilled workers, GenAI can act as a knowledge base, preserving institutional expertise and guiding new workforce entrants in complex manufacturing processes. AI-powered decision support systems will enable companies to maintain high production standards even as labor shortages persist.

As GenAI becomes more integrated into manufacturing, we’ll see costs decrease, benefiting patients and end-users alike. In a future crisis, real-time optimization could prevent the kind of shortages we saw early in the pandemic. For example, if another global event disrupts supply chains, GenAI can dynamically adjust production schedules, recommend alternative suppliers, and balance inventory levels to maintain a steady supply of essential goods.

GenAI is paving the way for a resilient, responsive healthcare ecosystem built on innovation and accessibility. The journey ahead holds incredible promise, and life sciences is on the brink of an essential and inspiring transformation.

Shweta Maniar is the Director of Global Healthcare & Life Sciences Industry Strategy at Google Cloud

1. The Aggregate Effects of Global and Local Supply Chain Disruptions: 2020–2022. World Bank Group. February 13, 2023. 

https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099358202132331977/idu04fa983470a55e045cf086ea01ed3050976da

2. Drug Shortages for Calendar Year 2021. FDA. 

https://www.fda.gov/media/159302/download

3. Taking the Pulse of Shifting Supply Chains. McKinsey & Company. August 26, 2022. 

https://www.mckinsey.com/capabilities/operations/our-insights/taking-the-pulse-of-shifting-supply-chains

4. How COVID-19 is Reshaping Supply Chains. McKinsey & Company. November 23, 2021. 

https://www.mckinsey.com/capabilities/operations/our-insights/how-covid-19-is-reshaping-supply-chains

Articles

Taking stock of today's gains and tomorrow's potential for generative artificial intelligence in reshaping the industry.