Michael D. Moberly, Principal, Founder kpstrat – November 28, 2023 

This post brings context to how, what, and which challenges generative artificial intelligence (AI) systems (nefariously applied), may bring to businesses and R&D projects which are intangible asset intensive and IP dependent.

This post describes new challenges posed by generative artificial intelligence systems (in the hands of nefarious actors and/or economic-competitive advantage adversaries) to businesses which rely – depend on applying proprietarily developed, acquired, and/or licensed content.

This post examines these challenges as risks posed by nefarious users of generative AI systems often for the purpose of, but certainly not limited to extracting images, marks, and/or other proprietary content developed internally via various forms, contexts, and/or applications of intellectual, structural, and/or relationship capital as well as issued IP.

This post introduces universal (business operation – economic) realities, both of which are vulnerable to the challenges – risks posed by nefarious users – consumers of generative AI systems, i.e.,

1. 70 – 80+% of most business’s valuation, competitiveness, revenue generation capability-capacity, and sustainability, etc., are directly attributable to intangible (non-physical) assets. Intangibles | Brookings – Unseen Wealth: Report of the Brookings Task Force on Intangibles on JSTOR – Intangible Assets: Computers and Organizational Capital | Brookings
2. a business’s reliance – dependence on their particular- mission essential intangible assets relates across sectors, irrespective of size, stage of development, sales, products-services, or location. Boom of Intangible Assets Felt Across Industries and Economy – UCLA Anderson Review

This post describes generative AI systems queries and prompts producing unique entrée points to and/or exposure-revelation of particular-proprietary (sought after – targeted) content. Which others may then acquire, use, hold, and perhaps claim. Any subsequent economic – competitive – reputational losses, etc., that such or similar acts produce for legitimate developers-holders of those assets, is disconcerting, challenging to recoup, and will surely be disruptive to (future) business valuation, standing, competitiveness, and revenue generation and sustainability.

• The (potential) adverse capabilities presented by generative AI systems (in the hands of the nefarious) to probe and execute at will, could undermine even the best business practices and reputation.
• Factor how same may not only skirt – outwit – outmaneuver some existing safeguards and risk mitigation practices, but also fundamentally flaunt general-specific deterrents that accompany IP issuance and ownership.

This post offers reasons why developers – holders of issued IP and proprietary intangible assets are obliged to consider the potential disruptions to ‘conducting business as usual’ events such as this may be to business economics, operation, and sustainability.  The future of intellectual property in the era of AI – Network Readiness Index

This post posits that generative AI, applied nefariously, will likely be problematic to conventions of intellectual property (holder beliefs and perception of benefits and rights, etc.). 

The European Union Intellectual Property Office (EUIPO, March 2, 2022) released a Study on the Impact of Artificial Intelligence on the Infringement and Enforcement of Copyright and Designs”. Phase 1 (europa.eu)

The authors of the study believe that emerging technologies, such as (generative) AI and machine learning, represent a “double-edged sword,” and can be used effectively to enforce as well as to infringe on IP rights, e.g.,

• machine learning toolscan be deployed by the nefarious to remove the digital dots and watermarks used to track the distribution of unauthorized copies of copyright works online, as well as to generate “deepfakes”—developed through a specific type of machine learning, known as “generative adversarial networks”.
• on the other hand, that same technology may be ‘harness-able’ for positive uses, e.g., once ‘deep fakes’ are identified, AI bots may be able to identify components of deepfakes which constitute copyright and/or design infringement.
• similarly for IP issued works, computer vision applications may be implemented to determine if videos are original or artificially generated.
• AI text generators are demonstrating capabilities to produce essays and poems, create artwork imitating the styles of renowned artists, as well as ‘guidance’ for passing complex examinations, faster, of course, than humans.

The Business Intangible Asset Blog was created in 2006 and now includes 1100+ topic specific posts intended to provide readers, ala business leaders, management teams, R&D administrators, boards, and investors, etc., with reliable insights to the application, valuation, competitive advantage, revenue generation capability, and resilience-sustainability of intangible assets designated as ‘mission essential’.

Posts at Business Intangible Asset Blog are intended to (a.) draw attention to and guide the development, application, management, safeguards, and risk mitigation to intangible assets designated as ‘mission essential’, (b.) describe how, when, where intangible assets contribute to – enhancing valuation, competitiveness, brand, reputation, revenue generation, operating culture, resilience, and sustainability.

kpstrat is a Business Intangible Asset Strategy – Risk Mitigation Collaborative and Business Intangible Asset Blog is a reliable resource about business things intangible.