co-authors:James E. Malackowski and Eric T. Carnick , JD Supra; AI as Intellectual Property: A Strategic Framework for the Legal Profession
"The artificial intelligence revolution presents the legal profession with its most significant practice development opportunity since the emergence of the internet. AI spending across hardware, software, and services reached $279.22 billion in 2024 and is projected to grow at a compound annual growth rate of 35.9% through 2030, reaching $1.8 trillion.[i] AI is rapidly enabling unprecedented efficiencies, insights, and capabilities in industry. The innovations underlying these benefits are often the result of protectable intellectual property (IP) assets. The ability to raise capital and achieve higher valuations can often be traced back to such IP. According to data from Carta, startups categorized as AI companies raised approximately one-third of total venture funding in 2024. Looking only at late-stage funding (Series E+), almost half (48%) of total capital raised went to AI companies.[ii]Organizations that implement strategic AI IP management can realize significant financial benefits.
At the same time, AI-driven enhancements have introduced profound industry risks, e.g., disruption of traditional business models; job displacement and labor market reductions; ethical and responsible AI concerns; security, regulatory, and compliance challenges; and potentially, in more extreme scenarios, broad catastrophic economic consequences. Such risks are exacerbated by the tremendous pace of AI development and adoption, in some cases surpassing societal understanding and regulatory frameworks. According to McKinsey, 78% of respondents say their organizations use AI in at least one business function, up
from 72% in early 2024 and 55% a year earlier.[iii]
This duality—AI as both a catalyst and a disruptor—is now a feature of the modern global economy. There is an urgent need for legal frameworks that can protect AI innovation, facilitate the proper commercial development and deployment of AI-related IP, and navigate the risks and challenges posed by this new technology. Legal professionals who embrace AI as IP™ will benefit from this duality. Early indicators suggest significant advantages for legal practitioners who develop specialized AI as IP expertise, while traditional IP practices may face commoditization pressures."
