Why AI and ethics are needed for the future of pharma investment
Good healthcare has long been guided by strong ethics – this is nothing new and would not be a surprise to anyone reading this. When the success of medicine itself is directly related to moral and social responsibility, and the end goal is always people’s health and well-being, the pharmaceutical industry is required to keep patients at the centre of any innovation, even where profit is concerned.
Artificial intelligence in pharma is no different. If we are to consider the ethics of investing in AI for pharma, we must address two main principles: one, the moral obligations of using AI responsibly, and two, the moral obligation of using or not using AI at all. Where should we use AI in pharma, and where shouldn't we? And how do we ensure the patient end-game is always considered?
Normalising a culture of ethical investment and profitability
When we think of Environmental, Social & Governance (ESG) in the context of investment, we might think of red-tape or extra regulation, but this isn’t the case. It is estimated that 79% of investors now prioritise ESG when making investment decisions, further demonstrating that ESG standards are not limitations but catalysts for meaningful advancement. Considering ethics will open up even greater opportunities for both profit and greater social impact; they are not mutually exclusive.
The link between commercial business success and ethical practice are directly related. Companies that commit to transparency in their sustainable and social practices are more likely to gain the confidence of both investors and the public. According to the Harvard Business Review, companies with high trust levels outperform their peers by up to 400% in terms of total market value, which in pharma terms means improved patient outcomes, wider access to medicine, and better financial performance.
With the right considerations in place for investing, we can ensure that AI technologies align with the core values of healthcare and, at the same time, that most breakthrough solutions are supported, giving scientists and innovators a chance to disrupt the industry for the better.
“It’s unethical not to use AI” – AI is here to stay, so let’s reap the rewards.
Responsible use of AI is a common theme in modern rhetoric, but what about our responsibility to innovate in health? It is important to remember that not using AI in pharmaceutical research and development is itself increasingly unethical. Here’s why:
- AI technology will significantly improve diagnostic precision, expand the reach of telemedicine, and democratise access to healthcare services.
- AI is transforming pharmaceutical R&D, leading to more efficient drug discovery processes and personalised medicine approaches.
- AI can expand the possibilities for all of us to manage our health, including enhancing the speed and accuracy of diagnostic techniques, enabling remote access to treatment for underserved communities, and securing high-quality healthcare and treatment.
When AI allows us to, for example, screen drug targets at previously unheard-of scales and analyse huge genomic datasets with ease, the question is not, “Should we use AI in pharma?”, but “How can we use AI safely and confidently?”. Addressing these critical questions will ultimately improve healthcare accessibility and contribute to a more sustainable healthcare ecosystem.
Putting up the guardrails to use AI properly and responsibly
So, how do we invest responsibly? One way to do this is to establish appropriate, well-thought-out ethical investment frameworks that set the right guardrails up front and make it clear what good looks like for using AI in pharma. This is especially salient now as AI and tech are advancing at breakneck speed, and investors are faced with critical choices that are shaping what healthcare looks like in the future.
We should set out clear guides for ethical investment and explain the benefits of this for both profits and social impact. Innovative ESG frameworks should generate both immediate, measurable outcomes and long-term societal benefits. They should go beyond traditional financial metrics to encompass social responsibility, ethical governance, and environmental impact. The emphasis is shifting towards sustainable value creation over time, with a focus on returns that contribute to a healthier and more profitable ecosystem.
This should include positive social impact, ensuring portfolio companies contribute to improved healthcare availability and accessibility and that companies are adhering to ethical usage of healthcare data and AI. We can outline criteria to assess and minimise potential adverse ESG impacts of investments and measure good governance policies.
The opportunity to influence pharma at a global level
By focusing on ESG-aligned investments, pharma investors can drive a wider ecosystem of innovation and success within the sector. With the pharma industry’s substantial impact globally and potential to reach thousands of patients across large markets, considering where and how to deploy AI is an exciting opportunity for social impact.
As the pharmaceutical sector continues to evolve, ESG-aligned initiatives are paving the way for a future where business success and societal benefit are harmonised. However, the use of AI raises questions around data use, access and privacy, as well as ethical considerations about the motivations of the companies creating these technologies. Where people financially benefit from the use of AI technologies in healthcare and pharma, can they ever be considered ethical? Definitely, yes, if it generates positive social contributions.
We’ve already witnessed large-scale pharma initiatives for social impact, such as GlaxoSmithKline’s £1 billion R&D initiative developing vaccines in lower-income nations, Sanofi’s 30 essential medicines in more than 40 low-income countries, Evonik Health Care's adoption of green chemistry principles, and many more. Now, investors must act accordingly to define a new era of positive impact, focusing on the potential and responsible use of AI technologies in pharma.
Future of ethical investment and AI
The future of pharmaceutical investment lies in the convergence of ESG principles with a strong emphasis on positive social contribution, ethical AI, and innovative business models. Companies that successfully navigate this landscape will be well-positioned to lead the industry in both financial performance and societal impact.
As we radically expand the health possibilities with AI, thorough ethical frameworks can help prevent the widening of health inequalities, safeguard against unforeseen medical harms and data compromises, and ensure that the societal impact is positive and available to the highest number of people. The pharma industry can’t afford to fall behind with technology or implement it badly. It’s our responsibility and our duty (as well as being in everyone’s interests) to embed AI and ethics firmly in pharma investment strategies to support long-term, sustainable healthcare advances.
About the author
Laurent van Lerberghe is founder and managing partner of KELES. A seasoned digital health investor and strategic leader with over 25 years of pharma C-suite experience, including transformative roles as chief strategy officer at Sanofi and Commercial VP at Abbott, throughout his career van Lerberghe has been a driving force in healthcare innovation, shaping the strategies of major corporations and delivering results across the US, Europe, and Asia. At Sanofi, he led pivotal initiatives, including the creation of the Gene Therapy Unit and orchestrating acquisitions that expanded the company’s footprint in oncology, immunology, and digital health.
