Artificial intelligence is reshaping how topical and transdermal drugs are discovered, formulated, tested, and monitored. What began as isolated experiments in computational chemistry has expanded into a coordinated effort across pharmaceutical companies, CDMOs, dermatology clinics, cosmetics firms, and regulators — all applying AI to solve one of medicine's oldest challenges: getting a drug through the skin effectively and safely. The market spans a wide value chain, from early-stage molecule design through post-market surveillance, and encompasses applications as varied as AI-optimized nanocarriers and deep learning-powered dermatology diagnostics.