Rudy Lai

AI @ Merck & Co.

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

Summary

  • Merck has progressively integrated generative AI and machine learning into its drug discovery and development processes since late 2023, with expanded partnerships (e.g., Vector Institute, Variational AI) and strategic collaborations (e.g., Boston Consulting Group, McKinsey).
  • By mid-2025, Merck developed advanced internal generative AI platforms, including foundation models like TEDDY with 400M parameters, enhancing disease inference accuracy and accelerating target identification from years to weeks, leading to tangible product developments such as the KRAS G12C inhibitor MK-1084 with positive Phase I results.
  • In early 2026, Merck extended its AI applications to support precision medicine through collaboration with Mayo Clinic, deploying AI for improved clinical trial workflows and decision-making, reflecting a sustained, mature adoption of AI technologies across research, manufacturing, and clinical activities.

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5 AI Use Cases at Merck & Co.

Precision Medicine
2026
Traditional
Generative
Agentic
Outcome
Merck collaborates with Mayo Clinic to integrate clinical data and AI-driven analytics that enable precision medicine approaches, improving early drug development decisions and personalized therapies. [1]
Clinical Authoring
2025
Traditional
Generative
Agentic
Outcome
Costs
Merck uses generative and agentic AI tools to automate the generation and review of clinical study documents, cutting document production time from weeks to days and improving productivity and compliance. [1][2]
Target Identification
2025
Traditional
Generative
Agentic
Outcome
Risk
Merck employs AI to analyze vast datasets, including patient genomics and single-cell data, to identify and validate biological targets for therapy with greater accuracy and speed, drastically reducing discovery timelines. [1][2]
Disease Insight
2024
Traditional
Generative
Agentic
Outcome
Revenue
Merck utilizes AI to analyze tissue and tumor samples, identifying patterns indiscernible to humans, enhancing biological understanding and informing drug development. [1]
Drug Discovery
2024
Traditional
Generative
Agentic
Outcome
Revenue
Merck uses generative AI and machine learning to design novel small molecules and optimize lead compounds more quickly and effectively, accelerating the identification of promising drug candidates and reducing time-to-market. [1][2][3]

Timeline

2026 Q2: no updates

2026 Q1

1 updates

Merck and Mayo Clinic launched research collaboration applying AI and advanced analytics to strengthen early drug development decisions and precision medicine capabilities; Merck communicated broader AI impact initiatives to accelerate patient access to medicines.

2025 Q4

1 updates

Merck embraced agentic and generative AI tools to strategically augment human decision-making and place experts 'in the right room,' addressing concerns about AI autonomy through effective human-AI collaboration.

2025 Q3

1 updates

Merck signed $349 million biobucks deal to expand AI-driven small molecule drug discovery with Variational AI focused on challenging targets; also accelerated clinical report drafting timelines from weeks to days using AI.

2025 Q2

2 updates

Merck expanded internal generative AI solutions reducing clinical study documentation time by over 80%; developed foundation model TEDDY (400M parameters) to improve disease inference by 10%; AI designed KRAS G12C inhibitor MK-1084 showed positive Phase I results; leadership emphasized tailored AI solutions embedded in business functions.

2025 Q1

2 updates

Merck utilized AI to accelerate drug manufacturing and discovery; AI augmented human researchers in target identification and molecule optimization, with emphasis that humans remain in the loop to validate AI outputs.

2024 Q4

2 updates

Merck published an AI 360° perspective demonstrating AI usage to drive efficiency and innovation across Life Science, Healthcare, and Electronics; a scientist discussed AI enhancing insights into disease biology undetectable by humans.

2024 Q3

1 updates

Merck emphasized AI's transformative potential across its culture and operations, highlighting ongoing efforts to harness AI for innovation and productivity improvements across life sciences and healthcare.

2024 Q2

2 updates

Merck KGaA engaged AI-focused biotech Biolojic Design for oncology and immunology drug discovery; Merck (MSD) announced strategic generative AI collaboration with Boston Consulting Group to enhance innovation and efficiency.

2024 Q1

2 updates

Merck partnered with Vector Institute to access a broad AI research ecosystem; also began collaboration with Variational AI to evaluate generative AI platforms for novel small molecule design, positioning itself as an early adopter of generative AI drug discovery tools.

2023 Q4

1 updates

Merck launched its first AI solution integrating generative AI, machine learning, and computer-aided drug design to accelerate drug discovery and synthesis, leveraging over two decades of data.