Open Source vs Patents: AI Innovation Strategies
Business organizations has long benefitted from open source publishing, whether on platforms like Github or Google Scholar. Patents are also critical for many organizations, allowing them to capitalize on their novel innovations and protect themselves from infringement on their ideas.
Many are doing both, however some have prioritized one over the other. In the emerging AI race in the financial industry, JP Morgan as well as RBC have been on the forefront of research whereas Citigroup and Bank of America have lead the pack in patents filed and granted.
It takes a lot of organizational resources to ensure that any initiative is successful, which is why organizations have been doubling down on one or the other.
Leveraging Open Source for Non-Differentiating Projects
If the business is developing a technology that is not novel or is not key to their unique competitive advantage, then leveraging the community of thousands of developers can be advantageous. Open source communities posses some of the most talented and eager AI developers. The logic behind this idea is that if an innovation would not differentiate yourself from the competition, then it would not be worth waiting the multiple year application process and potential legal ramifications. In these cases, it is best to open up the project to talented developers in the form of an open repository.
Leveraging Patents for Differentiators
When a technology is critical to your competitive differentiator, then patents will allow you to capture and sustain your added value. Patents require high up front investment in the form of a highly skilled research team, however, they allow your organization to set the standard and attract the best talent.
Strategies to Implementing Open Source Initiatives
Joining large open-source repositories like GitHub will allow the organization to start quick and scale up their contributions to the community.
Strategies to Implementing Patent Initiatives
Investing in pure research talent such as PHDs will allow the organization to be a thought leader and submit high quality patent applications. The average financial AI patent in Canada is roughly three years, where as it is roughly two years in the US. Starting early is key, and engaging the whole workforce, like the OnePatent program from Capital One can foster a culture of innovation and provide deeply differentiated inventions.
