The U.S. Patent and Trademark Office (USPTO) under new Director John Squires has been focused on spurring AI technology growth, with the USPTO in 2025 pushing a sweeping policy agenda designed to promote patentability of AI-related technologies and specifically to make it harder for patent examiners to reject AI-tech patent applications as patent-ineligible. As a result, 2026 is shaping up to be one of the most favorable years for U.S. software patents in more than a decade.
The Whirlwind of USPTO Policy Changes in 2025
The final months of 2025 have seen a whirlwind of activity from Squires and USPTO leadership, with many statements and initiatives aimed at strengthening the patentability of AI technology.
- August 2025 – AI and Software Eligibility Reminder Memo
- A USPTO reminder memo from USPTO Deputy Commissioner for Patents Charles Kim directed patent examiners to exercise greater care before rejecting AI-tech patent applications.
- September 2025 – Ceremonial Fintech Patent Signing Statement
- Director Squires ceremonially signed a fintech patent and emphasized his commitment to granting patents for technologies too often dismissed as “mere business methods.” Squires stated, “the U.S. Patent Office is open for business, especially for the technologies of tomorrow.”
- September 2025 – Ex Parte Desjardins
- Squires convened the rarely used Appeals Review Panel to reverse a rejection in an AI-tech patent application. Squires’ written decision specifically noted the policy importance of not unduly constraining the patentability of AI-tech patents: “Categorically excluding AI innovations from patent protection in the United States jeopardizes America’s leadership in this critical emerging technology.”
- December 2025 – Subject Matter Eligibility Declarations
- Squires issued a memo outlining how applicants can file Subject Matter Eligibility Declarations to help overcome eligibility rejections in AI-tech patent applications.
- December 2025 – Manual of Patent Examining Procedure (MPEP) Updates
- Squires published updates to the formal examining guidelines for the USPTO. The changes in the MPEP formally incorporated the principles set out in his Desjardins decision as binding rules for examination of future AI-tech patent applications.
Looking Ahead to 2026
With USPTO leadership pulling seemingly every available lever in favor of patent eligibility for AI tech, the Patent Office is clearly encouraging AI inventors to protect their AI innovations. In 2026, we can expect to see increased patent filing activity by AI innovators, higher allowance rates for AI-tech patent applications before the Patent Office, and broader claim scopes for issued AI-tech patents.
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