Generative AI in Personalized Medicine Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Personalized Medicine Therapeutics (Pharmaceutical, Genomic Medicine, Devices), By Deployment Model (On-premises, Cloud Based), By End-User (Hospitals and Clinics, Ambulatory Surgical Centers, Others) Region and Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 197.29 Million
CAGR (2026-2031)	26.24%
Fastest Growing Segment	Hospitals and Clinics
Largest Market	North America
Market Size (2031)	USD 798.52 Million

Market Overview

The Global Generative AI in Personalized Medicine Market will grow from USD 197.29 Million in 2025 to USD 798.52 Million by 2031 at a 26.24% CAGR. Generative AI in personalized medicine utilizes foundation models to synthesize complex genomic, phenotypic, and clinical data, enabling the creation of novel molecular structures, synthetic patient populations, and individualized treatment protocols. The market is primarily supported by the critical need to accelerate pharmaceutical R&D timelines and the capability of these algorithms to interpret unstructured multi-omics datasets for precision diagnostics. According to the Pistoia Alliance, in 2024, 83% of life science professionals reported using generative AI in their research, illustrating the sector's aggressive shift toward these advanced computational tools for therapeutic innovation.

Despite this momentum, the market encounters a significant impediment regarding regulatory fragmentation and data compliance. The variance in legal frameworks across major regions creates uncertainty for multinational stakeholders attempting to deploy standardized, cross-border solutions. This lack of harmonized governance, combined with inherent risks such as algorithmic bias and data privacy concerns, establishes a bottleneck that complicates the safe and scalable integration of generative AI into clinical workflows.

Key Market Drivers

The Reduction of Pharmaceutical R&D Costs and Time-to-Market is a primary catalyst propelling the Global Generative AI in Personalized Medicine Market, driven by the technology's ability to streamline drug development workflows. Generative algorithms are increasingly deployed to predict molecular interactions and optimize lead compounds with unprecedented speed, directly addressing the pharmaceutical industry's need to mitigate the high attrition rates and expenses associated with traditional discovery methods. This efficiency is translating into tangible financial benefits for early adopters. According to NVIDIA, July 2025, in the 'State of AI in Healthcare and Life Sciences: 2025 Trends' survey, 45% of healthcare and life sciences organizations using generative AI reported achieving a return on investment in less than 12 months, underscoring the rapid value realization these tools provide in clinical and research settings.

Concurrent with these efficiency gains, the market is significantly bolstered by the Rising Investment in Public and Private Precision Medicine Initiatives. Venture capital and corporate funding are surging to support the scaling of AI-native biotech firms that leverage foundation models for tailored therapeutic development. This influx of capital is exemplified by Isomorphic Labs, which, according to the company in March 2025, secured $600 million in its first external funding round to advance its AI-driven drug design engine and pipeline. Broader financial trends reflect this targeted enthusiasm; according to Mintz, in March 2025, biotechnology AI companies attracted approximately $5.6 billion in global venture capital investment throughout 2024, signaling strong confidence in the sector's potential to revolutionize personalized care.

Download Free Sample Report

Key Market Challenges

Regulatory fragmentation and data compliance issues act as a formidable barrier hampering the growth of the Global Generative AI in Personalized Medicine Market. The absence of a unified legal framework across major regions forces multinational stakeholders to navigate a patchwork of conflicting data privacy laws and validation standards. This variance creates substantial uncertainty, making it difficult for organizations to deploy standardized, cross-border solutions. Consequently, the legal risks associated with algorithmic bias and data handling stifle investment and delay the transition of generative AI tools from research laboratories into active clinical workflows.

The impact of this uncertainty is evident in professional sentiment regarding technology adoption. According to the American Medical Association, in 2024, nearly 47% of physicians emphasized the need for increased regulatory oversight of AI-enabled medical devices to establish trust and ensure safety. This demand for clearer governance indicates that the current lack of harmonized regulations directly contributes to hesitation among medical practitioners. As long as these compliance bottlenecks persist, the scalability of personalized medicine initiatives will remain constrained, slowing the delivery of individualized treatment protocols.

Key Market Trends

The Development of Domain-Specific Biological Large Language Models (Bio-LLMs) represents a pivotal shift from adapting general-purpose algorithms to utilizing specialized architectures trained on vast biological datasets. Unlike generic models, these Bio-LLMs are pre-trained on amino acid sequences, genomic strings, and chemical structures, enabling them to decipher the underlying syntax of biological systems for more accurate target identification and personalized therapeutic design. This trend is rapidly gaining traction as organizations seek to improve the precision of their computational outputs by moving beyond broad-application tools. According to Menlo Ventures, October 2025, in the '2025: The State of AI in Healthcare' report, 22% of healthcare organizations have implemented domain-specific AI tools, marking a seven-fold increase in adoption compared to the previous year and signaling a maturing preference for purpose-built logic over generic foundation models.

The Emergence of Multi-Modal Foundation Models for Holistic Patient Phenotyping is simultaneously transforming diagnostics by integrating disparate data streams such as clinical text, medical imaging, and omics profiles into a single analytical framework. This convergence allows generative systems to construct comprehensive patient representations that capture complex disease manifestations often missed by unimodal analysis, thereby refining patient stratification and individualized treatment selection. The industry's focus on processing complex visual and diagnostic data is intensifying to support this holistic approach. According to NVIDIA, July 2025, in the 'State of AI in Healthcare and Life Sciences: 2025 Trends' survey, 71% of medical technology organizations identified medical imaging and diagnostics as a leading AI use case, underscoring the sector's commitment to leveraging multi-modal capabilities for deeper, data-driven clinical insights.

Segmental Insights

Based on recent market assessments, the Hospitals and Clinics segment is identified as the fastest growing category within the Global Generative AI in Personalized Medicine Market. This expansion is primarily driven by the increasing adoption of clinical decision support systems that utilize generative algorithms to create tailored treatment protocols from complex patient data. Furthermore, supportive regulatory guidelines from entities such as the U.S. Food and Drug Administration are encouraging the integration of software as a medical device into clinical workflows. Consequently, healthcare providers are rapidly leveraging these tools to enhance diagnostic precision and operational efficiency.

Regional Insights

North America maintains a leading position in the global generative AI in personalized medicine market due to robust healthcare infrastructure and significant investment in research and development. The region benefits from extensive collaboration between established pharmaceutical companies and technology developers, which accelerates the adoption of new solutions. Additionally, the United States Food and Drug Administration (FDA) supports this growth by implementing clear regulatory frameworks for artificial intelligence in drug discovery and diagnostics. This supportive environment, coupled with a strong focus on precision health initiatives, drives the continued expansion of the regional market.

Recent Developments

• In January 2025, NVIDIA announced separate collaborations with IQVIA and Illumina to advance the application of generative AI in clinical trials and genomic research. During the J.P. Morgan Healthcare Conference, the technology firm revealed that IQVIA would utilize its AI foundry service to build agentic AI models designed to accelerate clinical development and treatment access. Simultaneously, Illumina agreed to integrate the tech company’s generative AI drug discovery framework into its multiomics analysis platforms. This integration aimed to broaden the accessibility of genomic data analysis for researchers, supporting target identification and the discovery of personalized biomarkers.
• In May 2024, Sanofi entered into a collaborative agreement with OpenAI and Formation Bio to develop AI-powered software customized for the pharmaceutical industry. This partnership aimed to accelerate the drug development lifecycle by combining proprietary data, diverse software resources, and fine-tuned generative AI models. The companies focused on creating purpose-built solutions to streamline the path from drug discovery to patient availability. By leveraging these customized models, the pharmaceutical giant intended to enhance its ability to bring new, innovative medicines to patients more efficiently, marking a significant step toward becoming an AI-powered organization at scale.
• In April 2024, Moderna expanded its ongoing partnership with OpenAI to integrate generative AI across its business operations, including legal, research, and manufacturing functions. As part of this collaboration, the company deployed an internal AI tool, Dose ID, which utilized advanced data analytics to evaluate optimal vaccine doses selected by clinical study teams. This application of generative AI allowed for a detailed review of clinical data, prioritizing safety and optimizing dose profiles before late-stage trials. The initiative underscored the company’s commitment to leveraging AI to scale its ability to deliver personalized mRNA medicines.
• In January 2024, a leading biotechnology company, Amgen, announced a strategic initiative to utilize generative AI for accelerating drug discovery and precision medicine. The organization stated it would build advanced AI models trained on one of the world's largest human datasets to analyze disease-specific biomarkers. By deploying a full-stack data center platform from NVIDIA at its decoding genetics headquarters in Iceland, the company aimed to create a human diversity atlas. This system was designed to predict disease progression and regression, thereby facilitating the development of individualized therapies for patients with serious conditions.

Key Market Players

• Syntegra
• NioyaTech
• Saxon
• IBM Watson
• Microsoft Corporation
• Google LLC
• Tencent Holdings Ltd.
• Neuralink Corporation
• Johnson & Johnson
• OpenAI
• Oracle

By Personalized Medicine Therapeutics	By Deployment Model	By End-User	By Region
Pharmaceutical Genomic Medicine Devices	On-premises Cloud Based	Hospitals and Clinics Ambulatory Surgical Centers Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Generative AI in Personalized Medicine Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Generative AI in Personalized Medicine Market, By Personalized Medicine Therapeutics:

• Pharmaceutical
• Genomic Medicine
• Devices

• Generative AI in Personalized Medicine Market, By Deployment Model:

• On-premises
• Cloud Based

• Generative AI in Personalized Medicine Market, By End-User:

• Hospitals and Clinics
• Ambulatory Surgical Centers
• Others

• Generative AI in Personalized Medicine Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE