This document discusses how artificial intelligence is reducing costs and improving outcomes in pharmaceutical research and development. It provides examples of how AI can help identify new drug targets, help identify safety and efficacy issues earlier, and improve patient stratification. The document also gives examples of AI outperforming human experts in areas like breast cancer and skin cancer diagnosis, and providing improved predictive ability for conditions like congestive heart failure. It discusses machine learning approaches and how AI performance typically improves with more data and model training.