Igniting New Quality Productivity: Potential Applications of Generative AI in the Healthcare and Pharmaceutical Sector

● Industry Transformation: AIGC Shaping the Future of Pharmaceutical Retail

● Omnichannel Integration: How New Technologies Enhance Consumer Experience

● Intelligent Upgrade: AIGC Empowers Pharmaceutical Companies to Enhance Operations

● The Path to Compliance: Compliant Applications of AI in Pharmaceutical Retail

Shanghai, November 8, 2024 – In April 2024, EY released the white paper “Unlocking New Quality Productive Forces: Potential Applications of Generative AI in Healthcare and Pharmaceuticals” at the Hainan International Consumer Expo, garnering widespread attention and enthusiastic responses from industry peers. Building on this foundation, EY has conducted further research and launched its second white paper, “Unlocking New Quality Productive Forces II: Potential Applications of Generative AI (AIGC) in Pharmaceutical Retail,” which delves into the multifaceted application scenarios of AIGC in the pharmaceutical retail sector and the transformative opportunities it presents.

Wu Xiaoying, Co-Lead Partner for the Life Sciences and Healthcare Industry, EY Greater ChinaIt stated: “An omnichannel layout is a highly strategic direction in the current transformation of the pharmaceutical and medical device industries, with pharmaceutical retail—represented by pharmacies—being one of the most critical channels. The rapid development of AIGC will inject new momentum into pharmaceutical retail. Through intelligent applications, pharmaceutical retail is poised not only to enhance operational efficiency but also to achieve more precise market positioning and personalized services. In this white paper, we have identified nearly 80 potential application scenarios for AIGC in the pharmaceutical retail sector, aiming to provide additional dimensions and perspectives for industry stakeholders and facilitate the adoption of more effective solutions to drive business transformation.”

Wu Miao, Director of Advisory Services, EY Greater Chinastated: “AIGC will drive innovation across all segments of the pharmaceutical retail industry. From inventory management to consumer engagement, and from marketing content creation to compliance and regulatory oversight, the application of AIGC will enable pharmaceutical companies and pharmacies to respond more efficiently to market changes and meet consumers’ growing demand for personalized services. Combined with other advanced technologies, AIGC will become a key engine driving industry progress.”

The white paper points out that over the past year, the pharmaceutical industry has continued to explore its direction amidst significant fluctuations. As hospital channels squeeze out inefficiencies and promote the rational normalization of drug prices through policies such as centralized volume-based procurement, DRG/DIP payment reforms, and anti-corruption campaigns, major pharmaceutical and medical device companies have increasingly shifted their focus to the omni-channel out-of-hospital market, represented by pharmaceutical retail. However, expanding into retail channels has not been smooth sailing. Pharmaceutical retail continues to face multiple challenges, including the impact of new policies (such as the “dual-channel” mechanism for medical insurance, reforms to individual medical insurance accounts, outpatient pooling, and price alignment initiatives like “Three Same” and “Four Same”), changes in patient flow patterns, heightened compliance requirements (including unannounced inspections), and the need to reduce costs and improve efficiency amid rising operational expenses. Therefore, the development of pharmaceutical retail requires continuous expansion of new strategic thinking and deeper insights. In this context, AIGC will become a key driver enabling pharmaceutical retail to break free from the constraints of traditional models and accelerate business transformation.

The white paper points out that AIGC will bring more potential solutions to address the challenges facing the pharmaceutical retail industry. As a technology capable of autonomously generating content, solving problems, and achieving self-learning, AIGC is expected to break the limitations of traditional drug sales models within the complex ecosystem of retail pharmacies, driving intelligent upgrades across multiple dimensions, including customer experience, medication management, and marketing promotion. The offline pharmacy purchasing journey for consumers involves multiple stages, ranging from store visits, product information inquiry, and consultation, to product selection, payment, usage guidance, in-store pickup or express delivery, and after-sales service. With the development of AIGC technology, every stage of this journey has the potential to be redefined, thereby improving efficiency, enhancing customer experience, and promoting the digital transformation of the industry.

The white paper emphasizes that AIGC will play a pivotal role in every aspect of pharmaceutical retail operations. It will enhance service quality and operational efficiency across numerous areas, including drug procurement and acceptance, merchandise and inventory management, sales settlement and financial management, pharmacy store operations, member management and marketing, training for store staff and pharmacists, as well as finance, human resources, IT, quality control, and risk management. Particularly in the current environment of increasingly stringent regulatory compliance for pharmacies, AIGC will provide more solutions to facilitate standardized operations.

With the widespread application of AIGC, the pharmaceutical retail industry is facing challenges in data security and compliance. The white paper proposes that pharmaceutical companies should establish a sound data governance system, adhere to relevant laws and regulations, and apply AIGC in a secure and compliant manner. An effective risk management mechanism will help enterprises cope with the increasingly complex regulatory environment and ensure the sustainable and healthy development of their businesses.

The white paper points out that AIGC is gradually becoming an important force driving transformation in the pharmaceutical retail industry, bringing new opportunities and challenges to pharmaceutical companies. By effectively leveraging AIGC, the pharmaceutical retail sector will achieve more efficient operational models and deliver superior consumer experiences. With continuous technological advancements, future pharmaceutical retail will no longer be merely a place for selling medicines, but rather a consumer-centric health service platform integrating technology and innovation.

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