RWS: Why is the IP Sector Struggling to Harness AI's Power?

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The world of intellectual property should be the perfect place for AI to thrive, but the industry insiders aren't satisfied with AI so far | Credit: RWS
Research from RWS reveals 80% of IP executives are facing mounting commercial pressure, yet satisfaction with AI solutions remains disappointingly low

There is a strange paradox in the world of intellectual property (IP) right now. While 80% of people working in IP are under huge pressure to boost revenues and slash costs, the sector's satisfaction with AI technologies β€” which are often slated as the route to such outcomes β€” is shockingly low.

New research from RWS surveying 312 global IP professionals reveals that despite widespread experimentation with Gen AI tools, the technology is failing to deliver on its promises.

The study found that 55% of organisations have tested at least one Gen AI solution, yet most report underwhelming results.

Currently, there is a real gap between AI's potential and its current performance, with RWS finding that IP executives report low satisfaction far more than they do successes.

β€œThe IP sector has adopted a cautious approach to embracing AI,” said James Lacey, SVP at RWS. β€œHowever, a number of IP professionals have identified that, when AI is combined with human expertise, it can reshape how IP teams operate, scale and deliver value.”

James Lacey, SVP at RWS

Why AI should be improving the IP world

The theoretical case for AI in intellectual property appears compelling given the sector's specific challenges.

IP teams routinely manage vast portfolios, with the report noting that small teams often handle "thousands, if not tens of thousands, of patents" β€”  precisely the kind of scale that AI excels at.

Much of that work involves repetitive, rule-based processes like patent searches.

RWS's study found that 25% of IP professionals are attracted to AI's ability to handle administrative tasks, with complex but routine docketing being a prime example.

IP work's inherently international nature creates constant translation needs, explaining why patent translation has become the most adopted AI use case.

The sector's research-heavy requirements β€”  from patent prosecution to freedom-to-operate analyses β€”  should play to AI's strengths in rapidly searching and analysing technical databases.

The pattern recognition demands of identifying similarities in patent claims or trademark searches align naturally with AI capabilities.

A graph from RWS's latest report | Credit: RWS

Patent translation leads adoption but quality concerns persist

Patent translation emerged as the most widely adopted AI use case, with 62% of corporate IP professionals and 48% of law firms having trialled the technology.

However, satisfaction levels remain modest, with only 27% of corporate users highly satisfied with AI translation services.

Patent drafting scored even worse, achieving rock-bottom satisfaction ratings despite 80% of respondents expecting it to deliver value within five years.

"That's not good enough for the IP market," James suggests.

"A 15% error rate would be disastrous for patent applications where even the slightest of errors can alter the entire scope of patent protection."

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Legacy systems hold back progress

The research shows that outdated IP management systems are one thing that is really holding IP companies back from modernisation efforts.

While 60% of respondent organisations use an IP management system, only half are satisfied with performance, dropping to just 12% who are extremely satisfied.

Systems integration topped the list of complaints, alongside poor user experience and limited flexibility.

Corporate IP professionals proved 40% less likely than law firm peers to be extremely satisfied with their systems.

Conservative reputation challenged

The findings challenge the IP sector's reputation for excessive caution.

Despite concerns about AI hallucinations, 68% of European IP professionals have tested Gen AI use cases, followed by 52% in North East Asia.

"We completely accept that AI is going to change things, and we really would love to embrace it, but it doesn't seem ready yet," says Gwilym Roberts, Chair & Senior Partner at Kilburn & Strode.

Gwilym Roberts, Chair & Senior Partner at Kilburn & Strode

Future workforce transformation expected

Looking ahead, IP professionals anticipate significant workplace changes.

Most expect AI to automate 10-30% of their current work whilst assisting with 40-60% of tasks within five years.

However, 45% believe expert human oversight will always remain essential across key use cases.

Anthony Brennand, VP Product and Innovation at RWS IP Solutions

"Once we're through the experimentation phase, many organisations will rely on AI powered applications, where the vendor is responsible for managing security risks," explains Anthony Brennand, VP Product and Innovation at RWS IP Solutions.

The research indicates that whilst the IP sector remains eager to embrace AI's transformative potential, current solutions must significantly improve before the technology can fulfil its promise of revolutionising intellectual property practice.