The AI industry has experienced remarkable growth in recent years. Since 2020, the market has nearly doubled in value, reaching $184 billion, while the number of users engaging with AI tools has tripled to almost 315 million. Alongside these significant increases in revenue and user base, the AI sector has also witnessed a substantial rise in patent activity, leading to an extraordinary surge in the number of active patent families.
Data from AltIndex reveals that the total count of active patent families in the AI technology sector skyrocketed by 940% over the past ten years, reaching nearly 320,000.
Baidu Leads with 15,600 AI Patent Families; Samsung and Huawei Boast High-Quality Portfolios
This surge in patent activity is driven by technological advancements, the growing application of AI across various industries, an influx of AI startups, and the competitive efforts of major tech companies like Google, Microsoft, IBM, Nvidia, and Tencent to establish dominance in the AI arena. Data from Statista and LexNexis showcases the impressive growth trajectory in this field.
In 2014, there were approximately 30,800 active patent families held by the world’s top 100 owners in AI technology. Since then, that number has increased significantly, soaring to almost 320,000 by last year.
The LexNexis report highlights that, in 2023, seven of the top ten AI patent holders were based in China, with Baidu leading the pack. The Chinese tech giant reported over 15,600 patent families last year, a staggering increase of 52 times compared to 2014. Tencent followed closely with around 14,500 active patent families, while State Grid had approximately 13,500. Other notable patent owners, including Microsoft, lagged behind, with the US tech giant holding 6,400 patent families in 2023, up from over 3,500 a decade ago. Additionally, Ping An Insurance saw remarkable growth, with its active patent families jumping from just seven to over 10,500 during this time period. According to the 2023 Patent Asset Index, Samsung’s patent portfolio displayed the greatest innovative strength, followed by Huawei, while Baidu, despite having the most active patent families, ranked third.
China’s Share of AI Patents Doubles to 68%, While US Share Declines to 13%
The substantial increase in AI patents can be largely attributed to China’s dominance in this area. As a result, the country has experienced the most significant rise in the share of active patent families. In 2014, China’s share stood at 29%, and this figure has now doubled to 68%.
Conversely, this gain for China has translated into a decline for the United States. Data indicates that the US share of active patent families in the AI sector has halved over the past decade, dropping from 26% to just 13%. Meanwhile, South Korea’s share has remained stable, while Japan and Germany have also seen reductions, with their shares shrinking by 19% and 2%, respectively.