Pharma Logistics Needs to Embrace AI Now

Steve Jacops 
President, Global Biopharm Solutions; Board Member, Global Clinical Supplies Group

The following is a summary of a keynote presentation by Global Biopharm Solutions President Steven A. Jacobs at a Leading Minds Network seminar in Boston. 

The biggest obstacle isn’t tech—it’s people, leadership mindset, and outdated processes. Pharmaceutical supply chains have made tremendous progress over the past few decades. Yet, if you ask industry veteran Steven Jacobs, the sector remains dangerously behind where it could—and should—be. In his recent keynote, Jacobs laid out a clear-eyed assessment of how the industry evolved, where it currently struggles. He also explored how emerging technologies like artificial intelligence (AI) and machine learning can help build a smarter, more sustainable, and more resilient supply chain.

Jacobs’ presentation wasn’t a theoretical pitch for digital transformation. It was a call to action grounded in lived experience and perhaps frustration with slow-moving systems that are costing the industry time, money, and—most importantly—patient safety.

Key Takeways

• Pharma has made progress, but clinical operations lag behind.
• AI offers real, tangible benefits—but only if data is clean and usable.
• Barriers like mistrust, poor training, and regulatory friction slow adoption.
• Investors want speed, but reality demands smarter—not just faster—innovation.
• Pharma must integrate AI into operations, logistics, and compliance now.
  

He began with a look back, inviting the audience to recall the logistics landscape 25 or 30 years ago. It was a time defined by manual processes, unreliable documentation, oversized polyurethane containers, and a general lack of accountability in temperature control. He cited an example where one clinical site reused bulky shippers as furniture. Dry ice was shoveled by hand. Couriers promised to replenish packaging—but often didn’t. And global shipping delays were common, with customs black holes sometimes swallowing entire consignments.

Technology, of course, has changed that. Today, companies have access to real-time monitoring tools, more sustainable packaging options, and more sophisticated regulatory systems. However, according to Jacobs, progress has been uneven. In particular, clinical supply chains remain highly fragmented and inefficient. While commercial teams are adopting automation, analytics, and robotics, clinical teams are often still operating in silos, with inconsistent data and outdated practices.

The Promise of Industry 4.0 Technologies
Jacobs challenged the audience to recognize that Industry 4.0 is no longer a future aspiration—it’s the current reality for many sectors. The combination of AI, big data, cloud computing, and IoT has become foundational in industries from retail to aerospace. Pharma, he argued, needs to catch up—quickly.

A central theme of his talk was data. While many in the room acknowledged using tools like ChatGPT, few had deployed AI to meaningfully improve supply chain operations. Jacobs wasn’t surprised. The real issue, he argued, isn’t access to technology—it’s the lack of clean, structured data. Without high-quality inputs, AI systems can’t generate reliable insights. The industry suffers from what he called a “garbage in, garbage out, or GIGO” problem that continues to undermine digital progress.

Success Stories: When AI Works
Yet there are bright spots. Companies like Genentech are using atmospheric data to optimize packaging strategies, saving millions annually. GSK, AstraZeneca, and Novo Nordisk are leveraging AI to assess shipment stability in real time, replacing what used to take weeks with a process that now takes minutes. Others are experimenting with AI agents to triage emails, predict delivery disruptions, and route shipments around extreme weather events.
Despite these advancements, Jacobs believes that many organizations remain hamstrung by cultural resistance. A major barrier, he said, is not technological but psychological: fear of looking unprepared. Many employees avoid experimenting with AI or automation tools simply because they don’t want to appear uninformed or out of their depth.
Jacobs underscored that these fears are counterproductive. Artificial intelligence, he emphasized, isn’t going to replace most jobs—but people who know how to use it effectively will. Embracing these tools, even in small ways, is now a baseline skill, not a luxury.

Regulatory Lag: The Elephant in the Room
The conversation eventually turned to regulators, and whether their conservative approach is holding the industry back. Jacobs acknowledged that regulatory agencies can be slow to adapt, especially in approving AI-driven innovations. But he cautioned against using regulation as an excuse for inaction. Instead, he encouraged companies to take the lead in educating and collaborating with regulators, creating shared understanding of what’s possible—and safe.

One of the most sobering parts of the presentation came when Jacobs addressed the issue of investor sentiment. During the pandemic, investors poured billions into life sciences, drawn by urgency, public funding, and the promise of fast-track development. Today, many are pulling back, frustrated by long timelines, limited returns, and high risk. According to Jacobs, return on investment has dipped to below 4% in some cases. Pharma, he argued, needs to prove that it can move faster, smarter, and more efficiently if it wants to regain investor confidence.

On Human Factors: Motivation, Disengagement, and Fear
As the session neared its conclusion, Jacobs turned his attention to the human element of transformation. He noted that in 2025 only about a third of employees in the industry are actively engaged at work. The rest are either actively disengaged, disengaged or disconnected. While many companies focus on bonuses and external motivators, Jacobs advocated for deeper sources of inspiration: purpose, autonomy, and the opportunity to master new skills. Digital transformation, he said, won’t happen without people who feel personally invested in the work they do and empowered to drive change.

He also warned of what happens when organizations refuse to evolve. Quoting Fast Company, Jacobs reminded attendees that AI isn’t just coming for jobs—it’s coming for companies, especially those weighed down by legacy systems and redundant labor. In his view, pharma’s traditional structure and regulatory caution have left it ripe for disruption. If the industry doesn’t move fast to modernize, others will do it for them.

Final Message: Don’t Wait to Get Left Behind
Jacobs ended his session with optimism. He pointed to real examples of AI-driven wins, cross-functional innovation, and operational breakthroughs that show what’s possible when the right teams are empowered with the right tools. The future, he concluded, isn’t just about deploying technology—it’s about having the courage to rethink how we work, how we lead, and how we deliver value to patients.

For organizations in the pharmaceutical and life sciences industries, the message is clear: the time to act is now. Embrace the discomfort, invest in the tools and training that matter, be comfortable failing quickly and learning even faster to build a supply chain that’s as intelligent as the therapies it protects.