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Artificial IntelligenceA worldwide overview of AI patentsand patenting by the UK AI sectorIntellectual Property Office is an operating name of the Patent Office

This report was prepared by theEconomics, Research and Evidence teamat the Intellectual Property Officeemail: research@ipo.gov.ukISBN 978-1-910790-61-8

ContentsExecutive summary.1Introduction.2A brief history of AI.3Worldwide patent analysis.5Data overview.5International landscape.7Geography of patent filings.8Top applicants worldwide.12Geography of applicants and inventors.13Relative Specialisation Index.14Trends in AI techniques.16The UK patent landscape.17UK applicants.17GB patents.22Industry trends.25UK ix 1. Data and methodology - patent search strategy.31Appendix 2. Data pre-processing.34Appendix 3. Dataset summary.36Appendix 4. Attribution of patents to application areas.36

Appendix 5. Attribution of patents to types of AI technique.37Appendix 6. WO and EP patent applications.38Appendix 7. Relative Specialisation Index.38Appendix 8. Extending patent coverage.39Acknowledgements.40

Artificial Intelligence – An overview of AI patenting 1Executive summaryArtificial Intelligence (AI) is growing at a great pace and is spreading across many industrysectors. AI as a concept was first coined in the 1950s and has been the basis for aplethora of science fiction novels and movies. Now, 60 years later, AI is rapidly enteringnearly every industrial sector and is increasingly embedded into modern society.The UK government is dedicated to advancing the UK’s AI sector, which is estimated1 toadd 630bn to the UK economy by 2035; AI is one of the four Grand Challenges formingthe UK government’s Industrial Strategy which aims to boost the productivity and earningpower of people across the UK, and to increase the level of investment in Research andDevelopment (R&D) from 1.7% to 2.4% of GDP by 2027.Earlier this year, the World Intellectual Property Organization (WIPO) published a reporton the technology trends in AI (WIPO, 2019)2, and this study aims to look at similar trendswith more of a focus on the UK. It provides an overview of the AI patent landscape acrossthe world and investigates the past and current trends in this rapidly advancing area oftechnology. It is one of the first to look more closely at patenting activity within the UK’sAI sector and how this compares with other countries. It provides insights into the leadingUK-based applicants in the field, the location and extent of their future markets, as well asattempting to identify specific strengths within the UK’s AI sector.The rapid growth of worldwide patenting in AI technologies over the past decade hasseen increases of over 400% in the number of published AI patent applications. The UKAI sector has seen its patenting activity more than double over the same period. Around88% of AI-related patents first filed in the UK are also protected elsewhere, and thisis in contrast with two big global players, the US and China, who have 53% and 19%respectively of patents protected in other jurisdictions. Patentees generally only take onthe additional costs and delays of extending protection to other countries if they deem itworthwhile3; the large proportion of UK patents protected elsewhere therefore reflects aperceived importance of commercialising AI-related patents internationally, which may bedriven in part by the larger markets found outside the UK.Some of the leading applicants in AI patenting worldwide include software companiessuch as IBM and Microsoft, and manufacturing and consumer electronics firms suchas Philips and Sony. UK-based applicants and inventors are ranked sixth worldwide interms of the absolute level of AI patenting activity. Interestingly, there are more US-basedapplicants filing for AI-related patents in the UK than UK-based applicants. Technologyrelated to neural networks has shown significant growth across the world over the past fiveyears. The UK in particular has seen larger proportional increases than the global trends inAI-related technologies related to transport, image processing and .uk/technologies/artificial-intelligence/WIPO, 2019 - https://www.wipo.int/edocs/pubdocs/en/wipo pub 1055.pdfOECD Patent Statistics Manual, 2009, pp 71-73 - gy/oecd-patent-statistics-manual 9789264056442-en

2 Artificial Intelligence – An overview of AI patentingIntroductionThe term ‘Artificial Intelligence’ (AI) refers to those computer systems capable ofperforming tasks that would normally require some intelligence if done by humans. Weinteract with AI systems on a regular basis, for example in transport, e-mail, banking andsocial networking, and AI is fast becoming embedded into our everyday lives.The UK government is committed to boosting the UK’s emerging AI sector4,5. In 2017,an independent review of the AI industry in the UK was carried out by Professor DameWendy Hall and Dr. Jérôme Pesenti6. The review recommended a number of ways toboost the UK’s emerging AI sector at home and internationally. In response to theserecommendations, the UK government published a Sector Deal7 that sets out a number ofcommitments from government and industry.From an intellectual property (IP) perspective, this report follows on from the efforts ofWIPO8 earlier this year and provides an overview of the AI sector through a patent-focusedlens, looking at differences across countries and concentrating on the industries in the UKthat use this patented AI technology.Glass.ai9 is a UK technology company that provided a list of AI companies that areactive in the field by analysing the public content of their websites. A number of UK AIcompanies were selected from the Glass.ai results to form case studies for this report.Not all companies from the Glass.ai results are found in the patent dataset because thecomputational and mathematical nature of AI means it can fall within fields that are legallyexcluded from patentability, and this varies by jurisdiction. This may encourage opensource development or non-patent ntelligence-sector-dealHall, W and Pesenti, J - ‘Growing the Artificial Intelligence Industry in the UK’, 2017 nt/edocs/pubdocs/en/wipo pub 1055.pdfwww.glass.aiSee https://papers.ssrn.com/sol3/papers.cfm?abstract id 3233463 for a review by the NationalEndowment for Science, Technology and the Arts (NESTA) mapping the development of AI general purposetechnology

Artificial Intelligence – An overview of AI patenting 3A brief history of AIAlthough AI has been around as a concept since the 1950s, a lack of enablingtechnologies and fluctuating levels of interest and investment led to a lack of tangiblebenefits from the technology. Computational advancements in modern times, suchas processing power and data storage, have resulted in technology catching up withtheoretical advances and over the last two decades there has been a steady increase inadvancements in AI, some of which are noted below.1997: IBM supercomputer, Deep Blue, beats world chess champion Garry Kasparov11.2002: First household robot is introduced – a vacuum cleaner called Roomba12. Amazonuses automated systems to provide product recommendations.2008: Google introduces speech recognition in their app, pioneering a new approach usingneural networks13.2010: Microsoft Xbox launches Kinect to track human body movement in their videogaming devices14.2011: Apple releases Siri15. IBM Watson computer beats champions of TV game showJeopardy16.2012 to present: Increased investment in AI, e.g. in autonomous vehicles. Google'sAlphaGo, created by London-based DeepMind, beats champion Go player17. Access to bigdata and advancements in deep learning lead to new r-ke-jie/

4 Artificial Intelligence – An overview of AI patentingCase Study: DeepMindDeepMind Technologies18 is a UK-based AI company. It was founded in 2010 by DemisHassabis, Shane Legg and Mustafa Suleyman, and was acquired by Google in 2014 for 400 million19 so it is now part of the Alphabet group. The company is well-known fordeveloping AlphaGo, which became the first computer program to beat a professional Goplayer on a full-sized board in 201620.The majority of DeepMind’s patents relate to the architectural details of neural networks, andto aspects of training a neural network. Their inventions therefore represent innovations thathave a potentially far-reaching impact in a variety of fields. DeepMind have also pursuedpatents relating to some of these fields, examples of which are described below: WO 2018/048934 relates to the synthesis of audio data using a neural network, whichcould be used in text-to-speech systems. WO 2018/081089 relates to a technique of performing language modelling taskson text sequences using neural networks, and has applications towards machinetranslation, text summarisation, and speech recognition. In each of these applicationfields, an understanding of linguistic context enables more accurate outputs to begenerated. US 2014/0185959 relates to an image processing algorithm which identifies the textureor patterning of objects in an image (such as striped or spotted items of clothing),which has applications towards image classification. EP 3398114 relates to a method of image compression, where salient features arerecognised using a neural network and then used to summarise the contents of theimage.DeepMind have typically applied for patents via the WIPO (PCT) route, indicating that theyseek to commercialise their inventions in the global marketplace.In 2014 London-based DeepMind wasacquired by Google for 400 best-human-go-player-ke-jie/

Artificial Intelligence – An overview of AI patenting 5Worldwide patentanalysisData overviewThe AI patent dataset on which this study is based was obtained from the European PatentOffice’s (EPO) PATSTAT21 data product (Autumn 2018 Edition) following detailed discussionand consultation with UK patent examiners who are experts in the field. 2017 is the lastcomplete calendar year available using this edition of the PATSTAT data source. PATSTATcontains worldwide bibliographical and legal status published patent data and has becomea standard in the field of patent intelligence and statistics22.There is no widely agreed definition of what constitutes AI and reaching such a definition ishampered by the wide-ra

Artificial Intelligence (AI) is growing at a great pace and is spreading across many industry sectors. AI as a concept was first coined in the 1950s and has been the basis for a plethora of science fiction novels and movies. Now, 60 years later, AI is rapidly entering nearly every industrial sector and is increasingly embedded into modern society. The UK government is dedicated to advancing .

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