Conventional drug development landscape is a complex and time-intensive process, encompassing multiple stages from target identification to clinical trials and regulatory approval. Artificial intelligence is a revolutionizing drug development process through advanced computational methodologies and predictive analytics. Specifically, the combination of AI-powered data-driven forecasting and wet-lab experiments is enabling rapid identification of promising targets, precise design of novel molecules, and strategic optimization of clinical trials. Although the full potential of AI in drug development is yet to be realized, its integration has already demonstrated remarkable impact by reducing development timelines from 10–15 years to 5–7 years and costs from 2–3 billion dollars to 1–1.5 billion dollars. To unlock AI potential and explore new opportunities for development of innovative drugs and therapies, established pharmaceutical companies are collaborating with AI companies. Primary objective of this chapter is to present high-level overview of drug development phases and possible AI applications at each phase. Moreover, it presents promising AI-focused start-ups and their work on revolutionary AI-driven drugs.