AI revolutionizes drug discovery and development, accelerating research, reducing costs, and increasing the probability of drug success in Phase 2 clinical trials. AI tools, including generative AI, enable rapid exploration of chemical spaces and multi-objective optimization of drug properties. AI-focused biotechs have already advanced several drug candidates into clinical trials in record time. AI also enhances clinical trial operations and regulatory affairs, promising faster, cheaper, and better-value drug development. The second part of the series will explore the financial benefits and the impact on the Probability of Success (PoS) in Phase 2 trials.