By: Julien Willard

Julien Willard, MD, MPH, is a California-based Partner at IBM Consulting and leads the company’s strategy work in the life sciences sector. With a background in health economics and business strategy, Willard has been at the forefront of helping pharma and biotech companies embrace artificial intelligence (AI) to accelerate research, development, and business operations. However, in an era where AI is increasingly viewed as the key to staying competitive, Willard cautions that AI alone is not enough to sustain long-term advantage in the highly competitive pharmaceutical industry.

The Promise of AI in Pharma

There’s no denying that AI holds enormous promise for the pharmaceutical industry. Companies are already using AI to accelerate drug discovery, streamline clinical trials, and transform core functions. Willard himself has been key in helping biopharma companies stand up comprehensive AI governance and design strategies that amplified their competitive positioning. Most recently, Willard advised and lived through a clinical trial optimization program at a Fortune 500 pharma company using a combination of artificial intelligence techniques.

But according to Willard, the competitive advantage AI provides is short-lived when not aligned with a company’s broader capabilities and strategic assets. “AI can undoubtedly reduce costs, improve processes, and enhance operational efficiency. But the reality is that these benefits are accessible to any company with the resources to implement the technology. That makes it a source of competitive parity, not sustained competitive advantage,” he says.

AI as a Tool, Not a Strategy

Willard argues that while AI can drive significant improvements, it is not a silver bullet that will automatically propel companies to the top of the market. Many organizations fall into the trap of treating AI as a standalone solution instead of integrating it into a cohesive strategy that focuses on what makes them unique. AI is there to amplify the “secret sauce”; it’s not the sauce itself.

“In the rush to adopt AI, companies often overlook the need to align it with their core strengths,” Willard notes. “If you’re applying AI in isolation, without connecting it to your unique capabilities, you’re missing the bigger picture. AI should complement what your organization already does well, rather than be the entire strategy.”

For example, a company known for its deep expertise in a specific therapeutic area, such as oncology or neurology, can use AI to enhance its existing strengths by improving its drug discovery process or optimizing clinical trials. However, AI is an accelerator. The competitive advantage is in the human capital and intellectual property that resides within that company.

Proprietary Data as a Differentiator

One area where AI can indeed provide sustained advantage, according to Willard, is when it’s paired with proprietary data that competitors cannot easily replicate. The value of AI often lies in the data it processes, and companies that possess unique, high-quality data can use AI to uncover insights that are unavailable to others.

“Having proprietary data gives you a foundation that others can’t easily imitate,” Willard explains. “If you’re the only company with access to a specific dataset—whether it’s patient records, genomic information, or clinical trial data—you can use AI to extract insights that your competitors won’t have. That can become a true source of competitive advantage, especially if you’ve been collecting that data over many years.”

However, Willard points out that even having large datasets isn’t enough. It’s the quality, relevance, and strategic application of that data that truly matter. “Ten billion data points may sound impressive, but if a competitor has 50 million data points that reveal the same patterns, then the sheer quantity doesn’t provide a competitive advantage,” he adds.

Agility and Culture

Another factor that distinguishes successful AI adopters from the rest is organizational agility. Willard emphasizes that companies able to quickly adapt and implement new technologies effectively are the ones that will gain a competitive edge. This agility often comes down to having a company culture that embraces innovation and encourages experimentation.

“A lot of companies talk about AI, but the ones that truly succeed are those that can adapt quickly,” Willard says. “Agility is a competitive advantage in itself. If your organization can test and integrate AI faster than others and learn from those experiments, you’ll be able to innovate at a pace that’s hard to match.”

Willard believes that this kind of agility is often found in smaller, more nimble companies, but even large pharmaceutical firms can foster a culture of experimentation. “It’s about empowering employees at all levels to explore how AI can improve their workflows, and then scaling those insights across the organization,” he explains.

The Future of AI in Pharma: Long-Term Success Lies in Integration

Looking ahead, Willard believes that AI will continue to play a crucial role in fundamentally transforming the pharmaceutical industry. But he is quick to remind leaders that long-term success will depend on more than just adopting the latest technology. It will require a strategic approach that integrates AI with a company’s existing strengths, proprietary data, and culture of agility and experimentation.

“The firms that will thrive in the future aren’t just those that adopt AI—they’re the ones that strategically apply it to enhance their core capabilities,” Willard concludes. “AI is a tool, not the strategy itself. To win in the long run, pharma companies need to use AI to amplify what makes them unique.”

In an industry where innovation is paramount, Willard’s insights remind us that technology, while transformative, must be wielded with a thoughtful, strategic hand to truly create lasting value. You can learn more about his work on his website.

Published by: Martin De Juan