The potential of AI as a strategic lever for innovation and regulatory decision-making
In regulatory, pharmacovigilance, and chemistry, manufacturing, and controls (CMC), the biggest value lies in supporting better decisions, stronger benefit–risk thinking, more confident regulatory interactions, and quicker access for patients who depend on therapies.
AI offers the potential to reduce risk in the submission cycle by discovering patterns, predicting questions that might arise from regulators and anticipating roadblocks later in the development and commercialization process. All of this contributes to evidence-based decision-making.
Identifying regulatory patterns with AI
This is where predictive AI, which uses statistical analysis and machine learning to identify patterns and make predictions about potential outcomes, can transform the decision-making process.
Predictive AI allows manufacturers to understand the potential impact of their products -- efficacy, safety, regulatory, and manufacturing – to support data-driven decision-making across the product lifecycle. In doing so, regulatory intelligence evolves from a passive knowledge repository of documents and information into an active part of the scientific and regulatory infrastructure that enables, guides, and defends scientific decision making.
Using AI tools – large language models (LLMs), semantic search tools, machine learning, generative AI, etc. – manufacturers can review publicly available information from the health authorities on the outcome of a regulatory activity – be that a list of questions, deficiency letters, or approvals – that document how rules and guidelines have been applied to those products.
An example is the US Food and Drug Administration’s (FDA) complete response letters (CRLs)1, which document deficiencies that can appear late in the review cycle and delay authorization. By anticipating hurdles based on past regulatory actions, manufacturers can mitigate risk with their own submissions.
Using AI to support strategic decision-making
AI tools, particularly statistical and machine learning for predictive modeling, can help to enrich evidence packages, increasing confidence and clarity in clinical data, thereby improving regulatory submissions.
In regulatory, safety, and quality, AI can help to build stronger dossiers with clearer data on benefit risk and more robust data on quality and consistency. AI together with statistical modeling could be leveraged to turn clinical trial data into evidence by identifying key features and quantifying potential outcomes (what that outcome could be, how likely it is, and what the uncertainty is). By using these capabilities to review the submission, manufacturers could gain insights into potential inconsistencies between modules, detect weak comparability links, or flag areas likely to generate major review questions based on patterns observed – all before regulatory submission.
Equally, AI can play an important role in supporting economic modeling decision-making and shaping health technology assessment (HTA) evidence generation. ISPOR’s Value in Health journal has published a working group report that discusses the uses of generative AI in HTA, including systematic literature reviews, real-world evidence, and health economic modeling.2
Already, AI is revolutionizing the initial stages of economic modeling by enabling teams to test multiple model structures simultaneously, identifying the most efficient and credible options to support a product’s value story. AI is also being put to use to consolidate disparate data sources and simulate missing input, helping to tackle a common issue with rare diseases. This allows health economists to focus on higher value tasks. Report authoring is another area where AI is proving to be valuable, where it automates repetitive tasks such as formatting and data integration, enhancing efficiency and ensuring consistency across documents.
AI can be used to simulate likely outcomes later in the R&D and regulatory submission stages. In an OECD paper on governing with AI in core government functions, the authors propose using AI simulations to model and predict potential impact of regulatory choices to support policy assessment.3 The goal, the authors note, would be to understand the drivers of innovation and their potential impact before implementing policy change.
In the highly complex and regulated life sciences industry, such simulations should be conducted together with subject matter experts in regulatory, pharmacovigilance, quality as well as in market access.
Aligning human intelligence and AI early on
- Defining the right questions and problem statements
- Identifying the most useful and meaningful data sources -- both structured and unstructured – to enable rapid creation of reliable datasets that will enable analytics to conduct fit-for-purpose modeling
- Reviewing, understanding, interpreting, and delivering insights based on AI model output
AI, when properly deployed, can dig through real-world data and help separate true cause-and-effect from coincidence. This could support drug companies to make stronger, more credible claims about who their drug actually helps and why – priorities for both regulators and patients.
Adoption of AI should begin with prioritizing high value use cases with clear benefits to patient outcomes and business strategy. For example, AI literature mining tools can help to ensure the evidence base supporting regulatory documents is comprehensive, traceable, and defensible.
Subject matter experts will also need to have clear insight into how an AI tool has reached a conclusion and validate each step in the model design to avoid the risk of “black box” decision making – a key concern raised by regulators and industry professionals alike.
Any AI model should also be continuously updated to align with FDA and European Medicines Agency (EMA) guidance and opinion papers, such as FDA’s Considerations for the Use of Artificial Intelligence to Support Regulatory Decision-Making for Drug and Biological Products . It is also important to recognize that regulators face the same types of challenges as industry, so working collaboratively with the health authorities to find complementary technologies could go a long way to help maximize the benefits for patients.
Conclusion:
AI’s transformative potential
However, AI models require human expertise combined with effective digital capabilities. Manufacturers will need to consider their partners, including digital solution providers and regulatory experts, and ensure they continually invest in people and capabilities, not just tools.
About the authors:
Lin Li, Ph.D., is Head of Clinical Statistics and Predictive AI at Cencora. He provides data-driven and tailored solutions that integrate biostatistics, bioinformatics, computer science, and biology to tackle challenges in discovery and clinical development.
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Sources:
1. FDA Embraces Radical Transparency by Publishing Complete Response Letters, FDA, July 2025. https://www.fda.gov/news-events/press-announcements/fda-embraces-radical-transparency-publishing-complete-response-letters
2. Generative Artificial Intelligence for Health Technology Assessment: Opportunities, Challenges, and Policy Considerations: An ISPOR Working Group Report. https://www.ispor.org/publications/journals/value-in-health/plain-language-summary/Volume-28--Issue-2/Generative-Artificial-Intelligence-for-Health-Technology-Assessment--Opportunities--Challenges--and-Policy-Considerations--An-ISPOR-Working-Group-Report
3. Governing with Artificial Intelligence: The State of Play and Way Forward in Core Government Functions, OECD, Sept 2025. https://www.oecd.org/en/publications/2025/06/governing-with-artificial-intelligence_398fa287/full-report/ai-in-regulatory-design-and-delivery_128691e6.html
4. Considerations for the Use of Artificial Intelligence To Support Regulatory Decision-Making for Drug and Biological Products, FDA, Jan 2025. https://www.fda.gov/regulatory-information/search-fda-guidance-documents/considerations-use-artificial-intelligence-support-regulatory-decision-making-drug-and-biological
