From generative AI to digital twins, emerging technologies are forcing a rethink of IP strategy—and how we define, defend, and derive value from IP.
As digital transformation reshapes business models and AI accelerates both invention and imitation, IP strategy is undergoing its most profound evolution in decades. Traditional IP strategies rooted in protecting static assets are straining under the weight of dynamic, data-driven ecosystems. Meanwhile, open innovation models, platform-based collaborations, and boundaryless R&D make ownership harder to define and more straightforward to contest.
In this environment, regional regulatory disparities further complicate global IP strategies. For example, the European Patent Office (EPO) has launched public consultations on how AI fits into inventive step assessments, while the United States Patent and Trademark Office (USPTO) maintains a strict requirement for human inventorship. Meanwhile, South Africa became the first country to grant a patent with an AI listed as the inventor.
As IP moves from the legal back office to the strategic core, organizations must confront a new reality in which innovation cycles are shorter; ownership is more fluid, and competitive advantage depends on how quickly their IP strategy can adapt. The urgency of this adaptation cannot be overstated, as the pace of technological change demands swift and decisive action.
IP Without a Passport: Can AI-Created Innovation Be Owned?
The surge in generative AI challenges the foundations of IP strategy and law. From autonomous drug discovery platforms to algorithm-generated product designs, machines are no longer just tools. They’re becoming co-creators. Yet, most global IP frameworks still require a human inventor for protection to be granted, creating a gray zone where innovation outpaces regulation.
According to BCG’s AI Radar Report 2025, 75% of executives rank AI as a top-three strategic priority, reflecting its growing significance in driving innovation. However, as AI becomes a co-pilot in creation, it’s outpacing the systems designed to protect innovation. Today’s IP frameworks are primarily built around human inventors. In practice, AI-assisted innovations are becoming both commercially valuable and legally vulnerable. For instance, patent authorities globally have begun acknowledging AI as a tool of substantive contribution. In Europe, the EPO has launched consultations to explore how AI fits into inventive step assessments, signaling a shift toward adaptive frameworks rather than blanket exclusion.
This is not a red light but a flashing yellow. Businesses that act now to redefine how they attribute, document, and defend AI-augmented innovation will be better positioned to safeguard their competitive edge. The future of IP will not just be about ownership but also about foresight, structure, and speed of response, all of which are crucial in the rapidly evolving landscape of AI and digital transformation.
Rethinking IP Strategy in a Borderless Innovation Economy
The days of siloed R&D are long gone. Today, the pace and complexity of innovation fueled by digital collaboration, crowdsourced R&D, and strategic partnerships are redefining what it means to own, license, or protect intellectual property.
As the World Economic Forum notes in its 2025 whitepaper, “Shaping Tomorrow,” creating an environment where innovation is open and democratized requires a foundation that prioritizes access, understanding, and adoption across borders and sectors. This shift pushes businesses beyond traditional IP firewalls and embraces more fluid, trust-based ecosystems where value is co-created and shared.
In this new paradigm, IP is no longer just a legal shield—it’s a strategic enabler of collaboration designed to balance openness with protection in a globally connected innovation economy.
Turning Patents into Strategic Power Plays
AI isn’t just automating processes; it’s redefining what counts as intellectual capital. Traditional IP systems weren’t built to handle the speed and complexity of AI-generated inventions or the blurred lines between human and machine input.
Take the case of IBM, which has been steadily pivoting from being a patent volume leader to focusing on high-value, strategic patents in areas like quantum computing and AI. In 2023, it announced that it would stop filing patents for every minor software improvement and focus instead on core technologies that align with its long-term roadmap.
Strategic Tip: To stay ahead in the IP game, businesses must conduct regular IP portfolio audits. This ensures that their patent strategy aligns with their innovation thesis, commercialization roadmap, and M&A pipeline, enabling them to make strategic decisions that protect and enhance their IP assets.
This shift is a cue for other businesses: In a world of AI-generated output, sheer volume won’t drive a competitive edge; strategic value will. Companies need to think beyond protection and toward positioning, aligning their IP portfolio with their innovation thesis, go-to-market strategy, and M&A ambitions. Strategic planning is key in ensuring the IP portfolio is aligned with the broader business strategy.
The Rise of Open Innovation: IP Boundaries Are Being Redrawn
The traditional closed, siloed R&D model allows for an open innovation ecosystem where startups, academia, corporations, and competitors collaborate. While this unlocks speed and diversity in problem-solving, it also introduces IP ambiguity: who owns what and when?
As per the 2025 Capgemini report, over 52% of large enterprises are engaged in open innovation partnerships, up from 38% in 2022. Yet only 27% say they have a robust framework to manage IP in these collaborations. This shift demands that businesses reimagine their IP frameworks not as legal safety nets but as dynamic tools for enabling and securing co-creation.
Closing the Gap Between Innovation and IP Strategy
As digital transformation, AI, and open collaboration redefine innovation, IP strategy can no longer operate in isolation. It must evolve into a proactive, cross-functional discipline that protects value and actively enables it.
Instead of a checklist, here are four expert reads from Evalueserve IP and R&D to guide your transformation:
- Unleashing Innovation: Crafting a Future-Proof IP Strategy
How to structure IP strategies for longevity and impact.
- Strategic Value of IP Audits in Business Growth
Connect audit outcomes directly to commercial outcomes.
- Exploring the Future: Megatrends Shaping Our World
Understand the macro forces impacting innovation strategy—and how IP must evolve in response.
At Evalueserve’s IP and R&D practice, we help global innovation teams future-proof their IP strategies by aligning them with emerging technologies, regulatory shifts, and collaborative ecosystems. From the AI patent landscape to competitive intelligence and IP due diligence, our solutions are designed to help you confidently innovate.
Ready to unlock strategic IP insights for the digital era? Explore our IP and R&D capabilities here.
