Former Trump official: If it gets patent policy right, the U.S. can win the AI race

(SeaPRwire) –   Washington is actively working to ensure American leadership in artificial intelligence. Lawmakers are directing investments toward semiconductor production, energy infrastructure, domestic manufacturing, and supply chain resilience, with AI serving as a central element of economic strategy.

However, a significant structural deficiency within this strategy remains largely unaddressed.

Achieving AI leadership necessitates more than just advancements in computing power, talent acquisition, and capital investment. It also hinges on the United States providing reliable and enforceable patent protections for the technologies being developed by companies and financed by investors. In the worldwide competition for AI supremacy, intellectual property policy is not a secondary concern but a fundamental pillar.

Recent rulings from the Federal Circuit concerning patents for applied AI have reignited discussions about subject matter eligibility under Section 101 of the Patent Act. While the U.S. Patent and Trademark Office has issued beneficial guidance to clarify examination standards for AI-related inventions, a crucial question for companies implementing AI in real-world applications—from advanced manufacturing to grid modernization and defense—is the durability of these patents: Will a properly granted patent withstand legal challenges? Will it facilitate financing and commercialization? Will it offer effective remedies in cases of infringement?

This distinction is particularly vital for applied AI, which is integrated into industrial processes, energy systems, logistics networks, and healthcare technologies. These are the sectors attracting substantial private investment, and where the strength of patent protection directly influences investment decisions. When patent rights are uncertain, investors factor in this risk, sometimes redirecting their capital to less risky industries or jurisdictions.

Actions by China and Europe

Other major global economies consider patent policy a core component of their industrial strategies. China incorporates intellectual property objectives into its national AI plans, linking patent development with enforcement capabilities. The European Patent Office has established structured guidelines for AI patentability, aiming for predictable outcomes for software-based inventions that demonstrate a “technical effect.”

The United States possesses considerable advantages, including leading research institutions, robust capital markets, entrepreneurial spirit, and a sophisticated patent system. Nevertheless, sustained AI leadership depends not only on technological prowess but also on legal certainty.

Three Priorities for a Future-Oriented Strategy

1. Maintain clarity in AI patent examination. The USPTO’s guidance on AI-related matters provides a solid starting point. Ongoing refinement, examiner training, and transparent application of eligibility standards are crucial for ensuring consistent outcomes across various technologies and industries. Predictable examination processes reduce obstacles at the initial stages of innovation.

2. Strengthen enforceability through legislation. The ambiguity surrounding Section 101 has introduced instability for inventions reliant on software and data. Congressional clarification of subject matter eligibility would mitigate unpredictability and establish clearer guidelines for both courts and innovators. Patent rights that cannot be effectively defended in practice do not serve as valuable commercial assets.

3. Align IP incentives with strategic sectors. Congress is actively pursuing legislation to support domestic manufacturing, energy infrastructure, defense technologies, and supply chain resilience—all sectors increasingly powered by AI-driven systems. Stable and enforceable intellectual property rights encourage companies to develop, manufacture, and scale innovative technologies within the United States, rather than shifting investments to jurisdictions offering greater legal assurance.

Discussions surrounding AI policy frequently concentrate on inputs such as chips, data, workforce development, and research funding, all of which are critically important. However, innovation ecosystems also rely heavily on dependable legal institutions. Investors evaluate the defensibility of intellectual property before committing capital, entrepreneurs assess IP strength before entering markets, and global corporations consider enforcement frameworks when deciding where to establish research, production, and scaling operations.

Predictable patent systems send clear signals: innovation will be rewarded, risks can be quantified, and a jurisdiction is committed to technological leadership.

The global race for AI dominance is well underway. To win this race, more than just advanced chips and research grants are required. It demands a patent system tailored for applied AI—one that offers clarity in the initial stages and enforceability in practice. If Washington is serious about achieving AI leadership, it must acknowledge that the global AI race is also an intellectual property race and consequently strengthen the U.S. patent system.