Eli Lilly significantly increased production of its popular GLP-1 drugs, Zepound and Mjaro, by using AI-driven technologies like digital twins and AI-powered inspection systems to optimize manufacturing processes and overcome supply shortages. This AI-enabled boost contributed to substantial revenue growth, helping Lilly reach a $1 trillion market cap, while the company continues to invest in AI for future drug development through partnerships with Nvidia and Chai Discovery.
Eli Lilly, the world’s largest drug company, has achieved a significant breakthrough in manufacturing by leveraging artificial intelligence (AI) to boost production of its popular GLP-1 medications, Zepound and Mjaro. While AI’s role in drug discovery has garnered much attention, Lilly’s first major AI success has come from optimizing its manufacturing processes. According to Dio Ralph, Lilly’s chief information and digital officer, the company produced more of these drugs last year than would have been possible without AI, a volume significant enough to impact their earnings reports.
The high demand for Lilly’s injectable GLP-1 drugs had led to production challenges and shortages, with the FDA recognizing a shortage from late 2022 through 2024. This shortage even prompted temporary allowances for compounders to produce these drugs despite patent protections. Faced with this risk, Lilly revisited its manufacturing processes, which they initially believed were fully optimized, to avoid being on the shortage list. This urgency drove the company to adopt advanced AI-driven solutions to enhance production efficiency.
Central to Lilly’s manufacturing improvement was the use of a digital twin—a virtual replica of the factory that uses real-time data to simulate and analyze production processes. This technology allowed Lilly to test various configurations digitally before implementing them in the real world, leading to significant production gains. Additionally, AI-powered inspection systems improved quality control by rapidly capturing and analyzing images of auto injectors to detect defects, ensuring higher product reliability.
The financial impact of these improvements has been substantial. Zepound and Mjaro together accounted for more than half of Lilly’s $65 billion revenue last year. Sales of Mjaro doubled from $11.5 billion in 2025 to $23 billion, while Zepound’s revenue nearly tripled from $4.9 billion to $13.5 billion. This robust growth helped Lilly become the first healthcare company to reach a $1 trillion market capitalization, underscoring the commercial importance of these AI-driven manufacturing enhancements.
Looking ahead, Lilly continues to invest heavily in AI for drug development as a long-term strategy. In January, the company partnered with Nvidia to create an innovation lab powered by a supercomputer aimed at tackling pharmaceutical challenges. Additionally, Lilly collaborated with AI startup Chai Discovery to accelerate biologic drug discovery, though any resulting medicines are expected to reach the market only by the mid to late 2030s. This forward-looking approach highlights Lilly’s commitment to harnessing AI both for immediate manufacturing gains and future drug innovation.