China Dominates AI Patents, but U.S. Remains Competitive, Experts Say

China is vastly outpacing rivals in the global race for generative AI patents, but experts say this doesn’t necessarily mean it’s winning the AI war against the U.S.

Key findings from UN report: A new report from the World Intellectual Property Organization (WIPO) reveals China’s dominance in generative AI patents:

• China has filed over 38,000 patents for generative AI inventions since 2014, accounting for 70% of the global total and more than all other countries combined.
• The U.S. lags far behind in second place with nearly 6,300 patents, less than one-sixth of China’s count.
• South Korea, Japan, and India round out the top five countries for generative AI patents.

Quantity vs. quality of patents: While China’s high patent count indicates research strengths, it doesn’t paint the full picture, according to an IP law expert:

• Van Anh Le of Durham University noted that patent quantity doesn’t necessarily reflect quality or impact, as many could be of “low significance” or incremental improvements.
• Other factors like startup activity and commercialization rates are also important indicators of a country’s AI innovation ecosystem.
• Le said the U.S. has a “robust innovation environment” when considering the bigger picture beyond just patent numbers.

Top companies and trends to watch: Chinese tech giants dominate the list of top generative AI patent holders globally:

• Tencent, Ping An Insurance Group, and Baidu own the most patents by far, with Chinese entities making up six of the top ten spots.
• IBM holds the fifth most patents, the highest of any U.S. company on the list.
• While generative AI currently accounts for just 6% of global AI patents, filings have rapidly accelerated in recent years, with over a quarter coming in 2023 alone.
• Life sciences appear poised for disruption, with patents using molecule, gene and protein data growing at a 78% annual rate.

Broader context and implications: Despite China’s lead in patent quantity, the U.S. remains highly competitive in the global AI race:

• Factors like government subsidies and varying patent practices can inflate numbers in China without corresponding to real innovation.
• The U.S. and China view AI superiority as a key strategic priority, but patents are just one piece of this complex puzzle.
• Ultimately, the country that most effectively fosters AI research, attracts top talent, and commercializes innovations may gain the upper hand, regardless of patent count.