As pharma giants slash headcounts and routinely strike billion-dollar M&A deals, another trend is steadily playing out at many of the largest drugmakers: the adoption of AI on a corporate scale.
Count Merck as a participant in this movement. On Wednesday, the company revealed a partnership with Google Cloud as it works to undergo an "agentic AI enterprise transformation."
As part of an investment in Google Cloud valued at up to $1 billion, Merck will get access to the tech giant's agentic AI platform across its R&D operations, manufacturing, commercial teams and corporate functions.
Notably, the deal involves Google Cloud engineers working directly with Merck's teams to onboard the tech, according to the April 22 press release. In a statement, Dave Williams, Merck's chief information and digital officer, noted that the AI push comes "as we enter one of the most significant launch periods in our company’s history."
The project will involve deploying Google's Gemini Enterprise tech "across end-to-end R&D workflows," leveraging predictive analytics and automation in manufacturing, bolstering productivity in corporate functions and more, according to the release. It's intended to "realize business-driving value across the next era of biopharmaceutical growth."
For Merck, the AI integration comes at a time of change. Last year, the company revealed a plan to lay off thousands of staffers in a bid to save $3 billion annually by the end of 2027. And in February, it unveiled a new corporate structure, emphasizing oncology with a standalone business unit and splitting out its other pharma offerings into a separate group.
The company has also been busy on the dealmaking front, splashing out billions of dollars each on its purchases of Verona and Cidara in 2025 and then following that up with its $6.7 billion Terns acquisition agreement last month.
Elsewhere, Big Pharma's embrace of AI has been gaining steam. Just before Merck, Danish pharma giant Novo Nordisk revealed an enterprise-wide AI deal with OpenAI. Novo is also in the process of a large-scale reorganization through layoffs under CEO Mike Doustdar.