Modern medicine is changing because Generative AI is joining the gap among clinical trials and the development of pharmaceuticals. Generative AI helps in accelerating the creation of new drug candidates, molecular structure optimization and clinical outcome prediction with extraordinary precision and accuracy with the help of intricate algorithms and machine learning models. In this chapter, many Generative AI applications in drug research and discovery are studied, with the emphasis on the latest developments, practices, and various case studies that highlight the significance of the technology. Also, data quality importance, training algorithms and ethical compliance are discussed. The ability of generative AI to assess large amounts of data and accelerate medication development to reduce the time and costs associated with bringing new drugs to market while managing patient data in clinical trials is also covered. By analyzing all the capabilities of AI, it definitely has the potential to wholly transform the introduction of new pharmaceuticals, with substantial benefits for patients and society as a whole.