Home Science & Technology Artificial Intelligence’s Impact on Intellectual Property: Prospects and Perils

Artificial Intelligence’s Impact on Intellectual Property: Prospects and Perils

The rapid rise of AI necessitates rethinking intellectual property policy to appropriately incentivize technological innovation while ensuring equitable access to knowledge. IP law constitutes a social contract between the rights of creators and shared public benefit. As AI systems gain the ability to create and invent autonomously, it is necessary to delve into the complexities of copyright, patent, and data access issues.


The field of artificial intelligence (AI) has seen tremendous advances in recent years. AI systems are now capable of generating creative works, conducting scientific research, and developing new inventions entirely on their own. This rapid progress is enabling innovative applications across many industries. However, it is also creating ambiguities around intellectual property (IP) rights and protections in the age of AI. 

IP law, including patents, copyrights, and trade secrets, exists to protect innovation and creative expression by providing certain exclusive rights to creators and inventors for a limited time. However, this legal framework was designed for human creators and inventors. As AI capabilities continue accelerating, the application of existing IP systems to autonomous, non-human creation poses serious challenges that require careful consideration.

AI enables businesses to automate processes, gain insights from data, and create new products and services. According to a McKinsey report, AI could create between $3.5-5.5 trillion in value annually across various industries by 2025 [1]. A recent journal article also discussed AI’s potential to positively transform areas like healthcare, finance, transportation, agriculture, retail, and cybersecurity [2]. For consumers, it provides more intuitive, intelligent, and convenient experiences.

With the rise of AI comes IP uncertainties. Patents, trade secrets, and copyrights all face new considerations in an AI world [3].

While AI promises immense benefits, we must thoughtfully evolve IP policies to incentivize AI development while balancing public access and protections. A lack of clarity around IP for AI could stifle progress in this strategic technology. In my view, it is imperative we update IP systems to both drive AI innovation and safeguard public interest.

The Importance of Intellectual Property 

Before examining the complex IP issues surrounding AI, it is worth reflecting on why IP systems exist in the first place. Patents, copyrights, trademarks, and trade secrets provide legal protections to encourage investment in knowledge creation and technological progress. They grant creators limited monopolies to profit from their works and inventions.

IP law aims to foster innovation by striking a balance between private rights and public access. On one hand, it offers financial incentives for creators and inventors, allowing them to recoup investments and profit from their efforts. At the same time, IP protections are temporary – inventions and works eventually enter the public domain for broader societal benefit. By promoting both innovation and knowledge diffusion, intellectual property seeks to maximize value creation.

In the age of accelerating AI development, policymakers must thoughtfully recalibrate this balance. AI-enabled automation could marginalize human ingenuity and creativity if appropriate policies are not enacted. However, excessive IP restrictions may also hamper ongoing AI progress, limiting its transformative potential. The chosen approach should spur AI innovation that improves lives while equitably disseminating its benefits.

Position  between IP and AI

In my view, we need a balanced approach to intellectual property rights for AI systems and their outputs.

On one hand, some IP protections will be important to incentivize continued investments in AI research and development. Without the ability to profit from their innovations, companies may be dissuaded from pioneering cutting-edge AI technologies. Thoughtfully extending certain IP rights to autonomous AI systems could accelerate innovation.

However, excessive IP restrictions run the risk of concentrating immense economic and social power in the hands of a few large tech firms that dominate AI technology. Democratic values of open access to knowledge and equitable distribution of AI’s benefits should be central considerations.

I believe the chosen IP approach should aim to foster a competitive and dynamic AI ecosystem with many participants. IP policy should encourage both large firms and startups to drive innovation. Individual human creators and inventors must also be empowered in an increasingly automated world. The public should get fair access to AI-generated works and inventions after a reasonable exclusivity period.

Striking the right balance will require open debate and creativity. Extending existing IP constructs like patents and copyrights to AI may be inadequate. We may need to pioneer new IP mechanisms tailored for an AI world. But with thoughtful policies that uphold both innovation and openness, AI’s immense potential can be harnessed to uplift society as a whole.

AI-Generated Works and Copyright Challenges

Copyright law protects original works of authorship such as books, music, paintings, and films. For a work to qualify for copyright protection, it must be independently created by a human and possess some minimal creativity. AI systems are now capable of generating creative works like songs, images and poems. But as non-human and non-sentient tools, AI lacks the legal personhood required under copyright law to be considered ‘authors’. 

AI-generated works introduce ambiguities around authorship and originality. If an AI system creates a painting, who owns the copyright – the programmer or the AI? How much creative human contribution is required for copyright eligibility? [4]. Several approaches have been proposed to address this conundrum, but a definitive solution remains elusive.

In my assessment, for AI innovation to thrive, copyright law should incentivize continued progress in AI creativity while preserving opportunities for human creators. Copyright ability criteria may need to evolve along with advancing AI capabilities. Policymakers should aim to strike a balance between sufficient incentives for AI development and equitable public access to knowledge.

AI Inventions and Patents

Patents grant limited monopolies over novel, useful, and non-obvious inventions, typically for 20 years. AI systems are now adept at autonomously conceptualizing, designing, and prototyping new inventions. This could greatly accelerate technological progress. However, like copyrights, patents are limited under current law to human inventors. 

If an AI system conceives and designs a new patentable device or drug formulation with little human intervention, who should own the patent rights? Should the AI be listed as the inventor, which would require granting legal personhood to machines? If human contributors like coders or users are deemed the inventors instead, how should their indirect contribution be assessed? Lack of clarity around patenting AI inventions can hinder development.

The patentability of AI inventions is complex. One key question is whether autonomous AI systems can generate truly novel and non-obvious inventions that would meet the standards for patent protection [3]. There are also uncertainties around who would own the rights to AI-generated inventions.

Clear patent guidelines will incentivize R&D investment in applying AI for complex innovation challenges. However, excessive consolidation of AI patent ownership by large firms can also negatively impact markets and consumer welfare. Policymakers must balance incentives to invent with accessibility of inventions for public benefit.

AI and Access to Data

The vast training datasets used by AI systems have become enormously valuable proprietary assets for tech companies. AI developers aggressively safeguard their data sources as trade secrets. However, unfettered data collection also raises ethics and privacy concerns. Individuals’ personal data and rights could be jeopardized by AI systems designed to scrape data indiscriminately from the internet.

Data privacy regulations being enacted in regions like the EU curb what kinds of data can legally be obtained and used to develop AI models. This pits the goal of promoting free public data access against private entities’ data rights. The tension between data privacy and open data access will require careful navigation to ensure ongoing AI progress. Large-scale public datasets could provide one solution.

Recognizing AI as Legal Persons?

Looking ahead, continued advancement in AI autonomy could necessitate granting personhood status and associated IP rights to AI systems. This would allow AI to hold copyrights or patents directly over the works and inventions they generate. However, AI personhood remains legally ambiguous and comes with wider policy and ethics concerns. 

Recognizing AIs as authors and inventors also concentrates immense IP control in the hands of large tech firms that develop cutting-edge AI. It could further marginalize human creativity and ingenuity in the face of increasingly capable machine intelligence. More discourse is required around reassessing the notion of inventorship and agency as AI capabilities grow.


In conclusion, the rapid rise of AI necessitates rethinking intellectual property policy to appropriately incentivize technological innovation while ensuring equitable access to knowledge. IP law constitutes a social contract between the rights of creators and shared public benefit. As AI disrupts established constructs around authorship and invention, we have an opportunity to thoughtfully renegotiate this contract for the modern era. 

Beyond IP, accelerating AI progress requires substantially updating legal systems, social institutions, and economic models. With wise policies and open public dialogue, we can harness AI to usher in a renaissance of learning and creativity for the benefit of all humanity. The choices we make today will shape our collective future.


[1] McKinsey, “Notes from the AI Frontier: Modeling the Impact of AI on the World Economy”, 2018.

[2] Agrawal, Ajay, Joshua Gans, and Avi Goldfarb. “Artificial Intelligence: The Ambiguous Labor Market Impact of Automating Prediction.” Journal of Economic Perspectives 33, no. 2 (May 2019): 31-50.

[3] Ramadan, Ahmed, James Dana, and Padraig Cordery. “Copyright and Artificial Intelligence: Protecting AI-Generated Works in the United Kingdom and Beyond.” Journal of Intellectual Property, Information Technology and Electronic Commerce Law 11, no. 1 (March 2020): 26-50.

[4] Price, II, W. Nicholson. “Artificial Intelligence Patents: A Data-Driven Approach.” University of Illinois Law Review 2019, no. 4 (2019): 1433-1494.