Panel Discusses AI's Role in Biotech Funding and Drug Development Costs

A panel discussion took place in Boston on September 28, 2026, focusing on how AI-native biotechs are gaining investor confidence. Michelle Chen, president and CEO of Form Bio, noted that AI is increasingly used across small molecules and biologics, achieving roughly a 50% reduction in timeframes and costs in some areas. David Steinberg, chief business officer at Formation Bio, added that 90 percent of the cost and time in medical development comes from clinical trials.

The discussion highlighted the factors investors consider when evaluating AI-enabled biotech pitches, such as unique data, clinical focus, and energy costs. The conversation centered on how AI is being leveraged to improve efficiency in the high-cost and long-lifecycle process of drug development.