Rudy Lai

AI @ Merck & Co.

Leading global drugmaker
Industry
Last updated
July 3, 2025 at 10:44 AM

Summary

  • Merck has steadily increased its adoption and integration of AI technologies from late 2023 through 2025, focusing on generative AI and machine learning to accelerate drug discovery, optimize small molecule design, and enhance clinical study processes, achieving notable product developments such as the AI-designed KRAS G12C inhibitor MK-1084.
  • Strategic partnerships with AI research institutions like the Vector Institute and collaborations with startups like Variational AI have enabled Merck to deepen AI capabilities and expand its R&D pipeline with deals valued up to $349 million, while internal AI innovations such as the TEDDY foundation model improve disease inference accuracy by 10%, reflecting a systemic AI embedment led by key figures including Dr. Iya Khalil.
  • By 2025, Merck has broadened AI applications beyond drug discovery to clinical document authoring and digital health tools like the AI-enhanced Merck Manuals search, signifying mature, multi-faceted AI use that boosts efficiency, productivity, and product innovation across Life Science, Healthcare, and Electronics business divisions.

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5 AI Use Cases at Merck & Co.

Digital Health Search
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Merck Manuals launched an AI-enhanced search tool to improve user experience by delivering faster and more accurate health information retrieval, supporting clinical and patient education. [1]
Target Identification
2025
Traditional
Generative
Agentic
Outcome
Revenue
Merck applies AI models, including foundation models like TEDDY, to rapidly identify and validate biological targets, improving precision with a 10% accuracy gain and reducing target ID timelines from years to weeks. [1][2]
Clinical Authoring
2025
Traditional
Generative
Agentic
Outcome
Costs
Merck collaborated with McKinsey to develop generative AI applications to automate and expedite the creation of clinical study documents, reducing time and improving workflow efficiency in regulatory submissions. [1]
Drug Discovery
2025
Traditional
Generative
Agentic
Outcome
Revenue
Merck uses AI to accelerate the identification and design of novel small molecules and drug candidates by combining generative AI, machine learning, and computer-aided drug design, thereby increasing the success rate and reducing time-to-market. [1][2][3]
Research Insight
2024
Traditional
Generative
Agentic
Outcome
Risk
Merck employs AI to analyze complex tissue and tumor samples to detect patterns indiscernible to humans, enhancing understanding of disease biology and supporting R&D decision making. [1]

Timeline

2025 Q4: no updates

2025 Q3

1 updates

Merck doubled down on AI-driven small molecule development by signing a $349 million biobucks deal with Variational AI to target challenging disease targets, reinforcing its commitment to AI-augmented drug discovery.

2025 Q2

3 updates

Merck expanded internal generative AI platforms to reduce clinical study document production times, launched AI-powered search tools for Merck Manuals, and integrated advanced AI models like TEDDY, improving target ID speed and disease inference accuracy by 10%, under leadership of Dr. Iya Khalil.

2025 Q1

3 updates

Merck embraced AI with human-in-the-loop approaches to accelerate drug target identification and development, leveraging large language models to enhance drug discovery, optimize small molecule properties, and accelerate drug manufacturing processes.

2024 Q4

2 updates

Merck published a 360-degree perspective on AI, highlighting company-wide AI adoption to increase productivity and innovation in life sciences, healthcare, and electronics; use of AI to analyze tissue and tumor samples to identify disease patterns was showcased.

2024 Q3

1 updates

Merck presented the broad potential and cultural integration of AI within the company, focusing on AI-driven transformation in life sciences and healthcare to improve scientific work and innovation.

2024 Q2

2 updates

Merck KGaA entered a $376 million pact with AI-focused biotech Biolojic Design for AI-driven drug discovery in oncology and immunology, while Boston Consulting Group announced a GenAI collaboration with Merck to expand AI capabilities.

2024 Q1

2 updates

Merck partnered with the Vector Institute to advance healthcare AI and initiated generative AI projects with Variational AI to design novel small molecules; early adoption of generative AI tools aimed at matching target product profiles was reported.

2023 Q4

1 updates

Merck launched its first-ever AI solution combining generative AI, machine learning, and computer-aided drug design to integrate drug discovery and synthesis, accelerating drug development and increasing success rates.