Part I of this two-part post focused on new challenges in IP procurement for businesses using AI for innovation. This second and final post will identify potential risks of IP infringement, and some additional considerations.

AI-generated content may create risks of infringement of IP owned by third parties. This is particularly relevant to trademarks or copyrights. Specifically, generative AI systems might be trained using public data, which might be output without the user’s knowledge of the proprietary nature of the generated content. Accordingly, a company prompting generative AI to create a new logo may inadvertently be at risk of infringing trademarks or copyrights of third parties.

Patent infringement is also a possibility, especially as generative AI improves its ability to generate software on demand. These can be significant risks for any company delegating creative processes to AI engines.

Another potential risk associated with using AI in the work environment is the inadvertent disclosure of trade secrets. In the United States and other jurisdictions, such disclosure may also prevent later patenting. Companies should consider developing proper employee guidance and training to reduce such risk.

More generally, businesses routinely using AI to innovate may be at risk of losing creative value. AI cannot replace human ingenuity and creativity. Companies may wish to identify any overreliance on AI and continue to encourage human innovation. The risks associated with using AI in a company extend beyond the technology itself and into the realm of IP. As laws and regulations surrounding AI and IP continue to evolve, businesses should remain vigilant and seek to adapt their strategies accordingly.

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