Protecting your AI related IP

Many companies have taken AI integration one step further and have developed their own AI systems to improve services and meet customer needs. A key concern is determining ownership of these AI-driven innovations, particularly when employees contribute to their creation.

Under UK law, IP rights typically belong to the employer if the creation occurs within an employee’s normal duties or when using company resources. However, if AI development falls outside an employee’s job scope, they may have a claim of ownership. This could result in employees leaving with valuable innovations, potentially compromising your competitive advantage and costing your business thousands (if not millions) of pounds in lost revenue.

To limit disputes, employers are advised to review and update (where necessary) their employment contracts to expressly set out that the IP rights relating to AI innovations belong to the employer. Additionally, businesses should implement a strong IP policy that:

• Defines company-owned IP.
• Establishes guidelines for employee-created inventions.
• Provides a process for employee recognition or compensation.
• Strikes a balance between supporting innovation while protecting company interests.

Introducing an AI policy

Employees may inadvertently expose trade secrets by entering information which belongs to the company into publicly accessible AI models, such as ChatGPT. This data could be used to train AI, making confidential information accessible to other users. Conversely, using publicly available AI tools poses risks of infringing third-party IP, particularly copyright, which could have serious legal connotations.

To address these risks, businesses need to introduce a comprehensive AI policy that:

• Educates employees on AI usage and risks.
• Establishes guidelines for responsible AI interaction.
• Sets parameters for acceptable AI applications within the company.
• Protects trade secrets and proprietary information.

Conclusion

Clearly defining AI-related IP ownership and responsible AI usage in employment contracts and company policies is essential. Regularly updating these documents ensures continued protection as AI technology evolves. Proactively securing IP rights not only mitigates risks but also fosters innovation and accountability within any organisation.