A Deloitte report about artificial intelligence (AI) in the life sciences puts it bluntly. Big data is the new currency for biopharma firms. The quantum leap forward in computational power that AI affords gives pharmaceutical firms the ability to develop products faster than ever before. This has lead investors to start looking for the top AI-driven pharma stocks.

The intersection of data science and machine learning makes research and development fundamentally different than it was previously. Molecule discovery will be much faster than it ever was. That promises to increase the development of drugs and reduce the time to commercialization. The applications go on and on but the overall takeaway is the same, AI will reduce time-consuming bottlenecks in drug discovery and lead to massive growth for firms that best take advantage of the technology. In time that will lead to massive revenue growth overall as the lengthy discovery phase is shortened. Lets take a look at some pharma stocks to buy that are taking advantage of AI technology.

Exscientia (EXAI)

Exscientia (NASDAQ:EXAI) has to be one of the most exciting pharma stocks in relation to AI. It’s a relatively cheap stock with the potential to triple based on analysts’ consensus.

EXAI very well may reach that target price based on the recent news that the company announced its 6th molecule created through its generative AI platform to enter the clinical stage. That particular drug is intended to treat psychiatric diseases and is being developed with Sumitomo Dainippon Pharma (OTCMKTS:DNPUF). It is the 3rd AI-developed drug created for Sumitomo with Exsceintia’s AI platform. Exscientia has clearly proven its value to Sumitomo and should market that alliance heavily in growing its platform. 

Exscientia is developing its own pipeline of AI-driven drugs as well. That includes 2 oncology drugs that are progressing toward clinical studies currently. The company’s design as a service platform will help to diversify its business as it can sell the service while also developing drugs to be owned outright. 

Schrodinger (SDGR)

Schrodinger (NASDAQ:SDGR) is similar to Exscientia in terms of its business. Both firms boast computational AI platforms utilized in discovering potentially useful molecules. And both companies direct that service toward in-house development and as a service. 

Schrodinger’s physics-based computational platform is utilized for drug discovery. However unlike Exscientia, it goes further and has utility across multiple industries including aerospace, energy, semiconductors and electronics among others. Schrodinger’s pipeline includes 9 drugs in clinical trials currently, dozens more in discovery and preclinical stages, and 2 FDA-approved drugs. 

SDGR is already booming thanks to AI and machine learning. Drug discovery revenue more than more than doubled year-over-year in Q1 2023, reaching $32.6 million. That accounted for roughly half the company’s sales which grew by 33% during the same period. 

The company expects drug discovery revenue to be between $70 to $90 million in 2023. It receives significant distributions from time-to-time that can spike revenues as well. 

Predictive Oncology (POAI) 

Predictive Oncology (NASDAQ:POAI) is an early-stage AI pharma stock with a differentiated business model. The company owns a biorepository of tumor samples, a lab and a good manufacturing practice facility. All of which differentiates the company from more data-heavy firms that might lack actual samples from which to derive insights. 

Yet, Predictive Oncology doesn’t really make much money now. It reported $300 thousand in revenues in Q1 2022, that dropped to less than $250 thousand in Q1 2023. But those low sales matter far less than the company’s partnerships announced this quarter. Specifically, its partnership with Cancer Research Horizons (CRH) which is the largest private funder of cancer in the world. CRH spends roughly $70 million on research annually. 

That partnership suggests that Predictive Oncology could soon have far greater resources at its disposal. That in turn could be good news for POAI stock. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.