Role of Artificial Intelligence and Automation in Transforming Operational Efficiency of Indian Pharmaceutical Companies

Abstract: Artificial Intelligence (AI) and automation are becoming more popular with the Indian pharmaceutical industry as a part of the Pharma 4.0 paradigm to improve operational efficiency as more regulatory and market pressures increase. Nevertheless, there is little empirical data on the way these technologies translate to quantifiable efficiency results. The study will focus on direct, mediating, moderating, and interaction effects of AI adoption and automation adoption on the operational efficiency of Indian pharmaceutical companies. Primary data were gathered among 350 workers (production, quality, R and D, supply chain and technology functions) and processed through Structural Equation Modelling (SEM). The results indicate that AI adoption as well as automation adoption have a significant effect on enhancing operational efficiency. Digital preparedness partially mediates the AI adoption and efficiency relation and employee technological competence mediates the automation and efficiency relation. Significantly, the research reveals a new AI-Automation Paradox whereby the interplay between AI and automation has a negative impact on the efficiency of the operations, which implies diminishing returns as a result of the complexity of the technology and organizational absorption capacity. The framework of Integrated Digital Operations Capability (IDOC) has been proven and promotes the Pharma 4.0 literature due to its capability alignment, rather than single technology usage. The research provides practical information to managers and policymakers on how to create sequenced, capability-based digital transformation strategies to achieve sustainable efficiency benefits. Keywords: Artificial Intelligence; Automation; Operational Efficiency; Pharma 4.0; Digital Readiness; Employee Technological Competence; Indian Pharmaceutical Industry. Title: Role of Artificial Intelligence and Automation in Transforming Operational Efficiency of Indian Pharmaceutical Companies Author: Mrs. S. Mahalakshmi, Dr. M. Ganesan, Dr.R.Mugesh Kannan International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 14, Issue 1, April 2026 - September 2026 Page No: 559-575 Research Publish Journals Website: www.researchpublish.com Published Date: 12-June-2026 DOI: https://doi.org/10.5281/zenodo.20666103 Paper Download Link (Source) https://www.researchpublish.com/papers/role-of-artificial-intelligence-and-automation-in-transforming-operational-efficiency-of-indian-pharmaceutical-companies