The chapter discusses the integration of artificial intelligence (AI) in healthcare, highlighting its potential in drug discovery and development. It emphasizes AI-driven methodologies for target identification, compound screening, and lead optimization, while ensuring data security and compliance with privacy regulations. It explores the use of machine learning algorithms like deep learning and reinforcement learning for predicting drug efficacy, safety profiles, and personalized treatment, while also discussing the ethical challenges of utilizing vast datasets and the importance of anonymization techniques. The chapter explores the use of AI in drug discovery, highlighting its impact on time and cost reduction. It suggests that by balancing innovation with strict privacy measures, AI can improve patient outcomes and streamline drug development processes. It provides insights into current trends and future directions.