Rudy Lai

AI @ Merck & Co.

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

Summary

  • Merck has progressively integrated advanced AI technologies, including generative AI and machine learning, into its drug discovery, development, and manufacturing processes from late 2023 through 2025, significantly accelerating target identification and compound optimization.
  • Key collaborations with institutions like the Vector Institute, BCG, and AI-focused biotech firms, alongside internal development of large-scale AI models such as TEDDY, underline a strategic commitment to embedding AI across therapeutic areas, improving precision by up to 10% and reducing drug development timelines drastically.
  • By mid-2025, Merck expanded AI usage to internal generative platforms and AI-enhanced search tools for clinical documentation, reflecting mature AI adoption that emphasizes a human-in-the-loop approach, boosting both innovation capacity and operational efficiencies across research and product pipelines.

VIBE METER

More AI announcements = more VIBE
Q1 23Q2 23Q3 23Q4 23Q1 24Q2 24Q3 24Q4 24Q1 25Q2 25Q4 25🔥🔥🔥🔥

5 AI Use Cases at Merck & Co.

Search Enhancement
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Merck Manuals implemented an AI-powered search tool to improve user experience and accessibility of medical information on their platform. [1]
Target Identification
2025
Traditional
Generative
Agentic
Outcome
Revenue
Merck applies AI, including proprietary foundation models like TEDDY, to accelerate target identification for drug development, reducing the process from years to weeks and improving ROI and efficacy of therapies. [1]
Clinical Documenting
2025
Traditional
Generative
Agentic
Outcome
Costs
Merck collaborates with McKinsey to deploy generative AI solutions for authoring clinical study documents, significantly shortening production times and improving clinical trial process efficiency. [1]
Insight Extraction
2024
Traditional
Generative
Agentic
Outcome
Merck uses AI to analyze complex tissue and tumor samples to identify biological patterns not discernible by humans, enhancing understanding of disease biology and guiding drug development. [1]
Drug Discovery
2024
Traditional
Generative
Agentic
Outcome
Revenue
Merck uses AI and generative models to design novel, selective small molecules and optimize lead compounds, enabling faster identification of viable drug candidates and shortening drug development timelines. [1][2][3]

Timeline

2025 Q4: no updates

2025 Q3

1 updates

Merck's AI strategy, combining full-spectrum drug development and a multi-layered data moat, cements its position to dominate biopharmaceutical innovation leveraging comprehensive AI integration.

2025 Q2

3 updates

Merck expanded internal generative AI solutions to reduce time in clinical study document production, launched an AI-powered search tool for Merck Manuals, and through Dr. Iya Khalil highlighted advanced proprietary foundation AI models (like TEDDY) improving disease inference by 10%, accelerating target ID from years to weeks, and embedding AI broadly across R&D functions.

2025 Q1

3 updates

Merck embraced AI in drug research with a human-in-the-loop approach to identify and weed out less promising targets rapidly, used AI/ML to optimize lead compound properties, and incorporated large language models (LLMs) to accelerate drug discovery and development workflows.

2024 Q4

1 updates

Merck reported large-scale AI adoption across its business, with tens of thousands of employees using AI to increase efficiency and insight; AI was applied to analyze disease biology by identifying patterns in tissue and tumor samples beyond human discernment.

2024 Q3

1 updates

Merck showcased its commitment to AI by publishing content underscoring its cultural shift towards using AI technology to transform scientific work and improve lives with AI-driven innovation.

2024 Q2

2 updates

Merck entered a strategic collaboration with Boston Consulting Group to leverage generative AI and also partnered with AI-focused biotech Biolojic Design to accelerate the development of oncology and immunology therapeutics using AI-driven drug discovery engines.

2024 Q1

2 updates

Merck expanded its AI capabilities through partnerships with the Vector Institute in Canada to access AI research networks, and Variational AI to evaluate generative AI platforms for designing novel small molecules, becoming an early adopter of generative AI drug discovery platforms.

2023 Q4

1 updates

Merck launched its first-ever AI solution integrating generative AI, machine learning, and computer-aided drug design to increase the success rate of new drugs and speed drug development, based on over two decades of internal data.