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Home»Finance»China Is Dominating the Race for Generative AI Patents 
Finance

China Is Dominating the Race for Generative AI Patents 

December 31, 2024No Comments5 Mins Read
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Will Asia Follow the EU Artificial Intelligence Act or Forge Its Own Path?
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Generative artificial intelligence (GenAI) is emerging as a transformative technological innovation of the 21st century, sure to reshape economies and societies and alter global power dynamics. The World Intellectual Property Organization (WIPO) has published a “Patent Landscape Report – Generative Artificial Intelligence (GenAI)” as its first-ever report tracking patent applications in the GenAI field.

The report’s findings are not entirely novel, as numerous reports from various perspectives are publicly available. The main takeaway from all these sources is that Chinese corporations, academic institutions (particularly the Chinese Academy of Sciences or CAS), and other emerging companies are investing substantial financial resources in producing high-quality research and patents related to AI.

The WIPO report revealed that between 2014 and 2023, over 54,000 patent families encompassing GenAI were filed, with a remarkable eightfold increase in patent applications since 2017. Breakthroughs in deep learning fueled these advancements, especially the surge in large language models (LLMs), generative adversarial networks (GANs), and global competition among nations and corporations to fully exploit the potential of GenAI technologies.

From the perspective of global technological competition, the GenAI revolution, spearheaded by countries like China, the United States, and South Korea, is not merely a matter of innovation and economic growth. It’s a battle for geopolitical supremacy. As nations and corporations invest substantial resources to develop AI technologies, the impact extends beyond economics. This technology is poised to influence various aspects of our lives, including military capabilities and national security, global trade, and international relations.

The WIPO report underscored the staggering growth in GenAI-related inventions. Over 25 percent of all GenAI patents studied in the report were filed in 2023 alone – and China is leading the charge. The country amassed an impressive 38,000 GenAI patients between 2014 and 2023, surpassing the combined efforts of all other countries. This overwhelming dominance extends beyond tech giants and encompasses state-backed research institutions like the Chinese Academy of Sciences (the subject of a separate report from the Center for Security and Emerging Technology, titled “Fueling China’s Innovation: The Chinese Academy of Sciences and Its Role in the PRC’s S&T Ecosystem”).

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By contrast, the United States, traditionally a leader in AI, filed just over 6,000 GenAI patents during the same period, a significant but distant second. While the United States remains home to some of the world’s most influential AI research institutions and companies, including Google, IBM, and Microsoft, China’s aggressive patent filings signal a strategic commitment to becoming the global leader in AI innovation.

The development of GenAI has been a cumulative effort over several decades. While AI’s roots stretch back to the mid-20th century, it is only in the past decade that we have seen a true acceleration in its capabilities. Early AI models, such as Joseph Weizenbaum’s 1960s chatbot ELIZA or the perceptron in the 1950s, paved the way for modern advancements. However, the rise of deep learning in the early 2000s and breakthroughs in neural networks enabled machines to learn and generate data at unprecedented scales. Large language models (LLMs) such as GPT-3 and GPT-4 represent a significant leap forward in AI’s ability to understand and generate human-like language. Their commercial success has ignited a flurry of investment in AI technologies globally.

Generative AI is revolutionizing economies across industries, from healthcare and entertainment to autonomous driving and telecommunications. In healthcare, it designs drug molecules and provides personalized treatments. It optimizes customer service, streamlines document management, and automates tasks in business. GenAI also transforms transportation with autonomous vehicles and optimized public transport.

Technological advancements and substantial commercial investments fuel GenAI development. Pioneering companies like OpenAI, Google, Microsoft, and Meta lead the research and application of GenAI, with billions of dollars allocated to AI development. Microsoft’s partnership with OpenAI, resulting in ChatGPT, exemplifies GenAI’s commercial potential. Google’s DeepMind continues to push AI research boundaries through its Gemini platform.

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China’s increasing presence, with firms like Tencent, Baidu, and Alibaba and state-sponsored entities like the CAS, is closing the gap in the AI arms race, reshaping global power dynamics. GenAI patents are not just about technology but a strategic asset. China’s dominance in AI patents indicates broader ambitions to lead in the global tech ecosystem. China itself hosts more than 4500 AI companies, as reported by Xinhua. WIPO’s report suggests a concerted national effort to secure a commanding position. 

Beyond the China-United States competition, there are other players like South Korea, Japan, and India. Many GenAI patents are filed in South Korea and Japan, allowing these countries to carve out niches, especially in hardware and industry-specific applications.

The global AI race has far-reaching geopolitical implications. Nations’ ability to control and innovate in AI will significantly influence their economic and political standing. AI technologies, especially GenAI, will impact national security, military strategies, and weapons development. Control over AI systems generating novel digital content, such as autonomous weapons, surveillance capabilities, or cyber prowess, will determine global power dynamics.

The widespread adoption of generative AI technologies will likely exacerbate geopolitical tensions. Nations competing for AI leadership may develop competing standards and frameworks, creating fragmented global AI ecosystems with different technological stacks, regulatory approaches, and ethical norms. Countries lagging behind risk significant economic disadvantages. In addition, GenAI can disrupt the global labor market, automating both low- and high-skill jobs. Countries integrating AI and providing reskilling opportunities will gain a competitive advantage, while nations failing to adapt will face substantial economic disruptions.

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To sum up, generative AI’s rapid growth has the potential to reshape industries and global power structures. As major powers such as China and the United States compete for dominance, the AI supremacy race will significantly impact international relations, economic strategies, and security concerns. With AI increasingly integrated into society, the global balance of power may ultimately depend on who controls the most advanced AI systems.

China Dominating Generative patents race
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