Artificial intelligence (AI) is transforming the world at a breakneck speed, with no sector insulated from its potency. While disruptive technologies and apprehension go hand in hand, most businesses agree that AI has immense potential.
In Canada, the impact of artificial intelligence on pharma retail is slowly becoming apparent. It can propel the sector, which is already growing at around 5 percent, toward more growth. Statista estimates Canadian pharmacies to generate around US$59.60 billion in revenue in 2025.
Some pharma companies have advanced further than others in this field. Sanofi, for example, has started implementing AI tools to support medical and business activities. The company views the technology as a catalyst for better treatments.
Likewise, many frontline retailers in Canada have adopted AI-powered tools to automate administrative processes linked to delivery, logistics, and payments. As the country experiences the full impact of all that AI can accomplish, businesses and the general public should assess what it means for them.
Streamlining Product Sourcing and Availability
The global pandemic revealed several shortcomings in the pharmaceutical sector’s supply chain management. In the present day, many pharmacies spend a giant proportion of their time on inventory tracking and management. The advent of AI has shown interested companies how to forecast demand for streamlining operations and reducing both stockouts and waste.
Gen AI tools, in particular, are enjoying popularity in Canadian retail. A KPMG report notes that 68 percent of the respondents who use AI apply it to predict product demand and optimize inventory levels. Around 38 percent of the respondents already have a generative AI solution, while approximately the same number plan to implement one in the future.
Moreover, automating these tasks frees up the staff’s team to focus on patient interactions and providing the required assistance through value-added services. These could be patient education or health consultation. AI-based automation also reduces the risk of manual oversight.
Making Accurate Knowledge More Accessible
One of the most far-reaching ways AI can strengthen pharma retail is by making medical knowledge readily available. AI-based chatbots can let patients address their queries about medication schedules and side effects. Knowledge empowers patients to advocate for themselves in interactions with their healthcare teams.
Enhancing the accessibility of knowledge can help the pharmaceutical industry garner more trust from consumers. A 2023 Pew Research survey found that many Americans don’t display trust in scientists—a situation that has worsened since the COVID-19 pandemic.
In recent years, several healthcare interventions and products have faced negative scrutiny for safety concerns. For instance, Teva Pharmaceuticals has faced considerable backlash due to one of its products—an intrauterine contraceptive device called Paragard.
Many users have even filed a Paragard IUD lawsuit after suffering internal bleeding and infections while removing the product.
Globally, too, higher trust is essential to find public support for new drugs and treatments. AI tools that empower the public with knowledge can favour this situation. According to TorHoerman Law, pharma companies that fail to warn users of the risks are vulnerable to legal action. Integrating AI into their communication approach can be effective at minimizing such risks.
Personalizing Medication Management
Perhaps the most conspicuous advantage of AI in pharma retail is its personalization benefits. Artificial intelligence tools can help pharmacists quickly understand a patient’s medical history and help them provide adequate support in dosage and regimen.
Moreover, pharmacies can contact patients to discuss medication gaps and delayed refills. AI-based systems quickly identify drug-drug interactions that manual scrolling or research may take substantially more time.
The University of Toronto’s pharmacy faculty highlights how AI-powered solutions can assist frontline healthcare professionals. Ongoing research presents numerous possibilities, from AI-assisted drones that can deliver medicines to reducing time for drug discovery. Faculty members are considering how to incorporate artificial intelligence into the pharma studies curriculum.
Companies that have made sizable advances in AI recommend calibrating the technology carefully. For instance, Sanofi warns against AI washing by businesses and using the tech in “snackable” formats to benefit consumers in real life. Getting legitimate and reliable advice on managing their medication is an example of healthcare empowerment.
Stricter Compliance With Healthcare Regulations
Another consequence of AI-driven transformations in pharma retail is improved compliance. Artificial intelligence is helping pharmacies automate operational tasks and streamline crucial information related to payments. It ensures data recording and storage that adheres to the guidelines of the corresponding regulatory bodies.
In this context, pharma retailers are also ramping up privacy and security features to match the pace of growing data. AI-based technologies make exponentially more data available to healthcare communities—from electronic health records to real-time monitoring data. Establishing the ownership of this information is essential to prevent data leaks and their aftermath.
Pharma conventions in the US and Canada also emphasize the ethical aspects of increasing AI reliance in this sector. One cannot rule out the possibility of prejudiced results due to a biased predictive model.
AI adoption in pharma retail has many advantages for pharmacies, customers, and other members of the supply chain. It also has downsides if organizations don’t exercise caution in preserving the confidentiality of sensitive data.
It will be interesting to see how these possibilities pan out in the future, particularly amid a growing understanding of AI’s capabilities and limitations. The Canadian pharmaceutical retail landscape may look very different in a few years, and the stakeholder universe can help make this a good thing for everyone involved.
