AI in Health
AI in Health
AI in Health
IP Pragmatics Limited
www.ip-pragmatics.com
2|Page
CONTENTS
Contents ..................................................................................................................................... 2
Executive Summary .................................................................................................................... 4
Introduction ................................................................................................................................ 6
Market Overview ........................................................................................................................ 9
Healthcare .............................................................................................................................. 9
Technology Segmentation ................................................................................................ 12
Diagnostics & Medical Imaging ........................................................................................ 14
Consumer Integrated Health ............................................................................................ 16
Drug Discovery...................................................................................................................... 18
Penetration of AI Technologies ........................................................................................ 19
Geographical Distribution................................................................................................. 20
Agriculture ............................................................................................................................ 21
Market size ....................................................................................................................... 21
AI Applications in Agriculture ........................................................................................... 23
Applications outside of Precision Agriculture .................................................................. 26
Patent Intelligence................................................................................................................ 28
Industry Applications ........................................................................................................ 28
Key Players........................................................................................................................ 30
Market Drivers and Trends ............................................................................................... 33
Barriers to Entry ............................................................................................................... 34
Deals ......................................................................................................................................... 34
Healthcare & Drug Discovery ............................................................................................... 35
Agriculture ............................................................................................................................ 39
Key Players................................................................................................................................ 42
Healthcare ............................................................................................................................ 46
Medtronic & Mazor Robotics ........................................................................................... 47
Verily & Verb Surgical ....................................................................................................... 48
Philips ............................................................................................................................... 50
Babylon Health ................................................................................................................. 51
Additional Companies: Healthcare ................................................................................... 52
Drug Discovery...................................................................................................................... 55
IBM ................................................................................................................................... 55
Google DeepMind Health ................................................................................................. 56
Benevolent AI ................................................................................................................... 57
Exscientia .......................................................................................................................... 58
Atomwise .......................................................................................................................... 59
Additional Companies: Drug Discovery ............................................................................ 60
Agriculture ............................................................................................................................ 61
Market Drivers and Trends ....................................................................................................... 62
Healthcare ............................................................................................................................ 62
Drug Discovery...................................................................................................................... 63
Agriculture ............................................................................................................................ 63
Barriers to Entry ....................................................................................................................... 64
Research Landscape ................................................................................................................. 67
Patent Analysis ......................................................................................................................... 75
Overview of General AI Patenting ........................................................................................ 75
Patent Search ....................................................................................................................... 76
Patent Publishing Trends ...................................................................................................... 76
Key entities ........................................................................................................................... 77
Cluster by Entity Type: Commercial vs. Academic ........................................................... 78
Geographical Analysis........................................................................................................... 81
Technology Areas ................................................................................................................. 82
Patent Landscaping .............................................................................................................. 85
Key Patents ........................................................................................................................... 90
Forward Citation Analysis ................................................................................................. 90
Backward Citation Analysis............................................................................................... 93
Commentary on Granting of Patents ................................................................................... 95
Appendix ................................................................................................................................... 98
Deals ................................................................................................................................. 98
EXECUTIVE SUMMARY
IP Pragmatics is a technology and IP commercialisation consultancy, with broad expertise
across the life sciences. This white paper provides an overview of the market and
intellectual property developments for the application of Artificial Intelligence
technologies in our key interest areas of Life Sciences, Agriculture and Patent Intelligence.
The deal, market and patent trends demonstrate that Artificial Intelligence (AI) in the life
sciences is undergoing rapid growth, especially over the last five years and in particular
within the fields of healthcare, drug discovery and agriculture. In addition, the application of
AI for patent intelligence for analysis of the technology landscape, is gaining pace.
AI has vast utility for mining large amounts of patient and population health data to address
vital gaps in healthcare and clinical workflow. Adoption of AI technologies is reported to
have reduced healthcare costs by 50% in pilot testing, while improving patient outcome by
over 50%.1 Pioneering areas for the use of AI in healthcare include robotic-assisted surgery,
medical imaging and diagnostics, in particular for fields such as radiology. Hospital workflows
are a key application, and virtual nursing assistants are emerging both in a hospital care
setting and for the general public, via healthcare specific consumer apps. In the drug
discovery arena, venture investment is growing and start-up companies are being
established across the US, Europe and Asia. The opportunity to streamline the lengthy and
inefficient drug development timelines is a key promise of AI technologies.
Deal flow and funding from Venture Capital and Private Equity firms in the US and Europe is
increasing rapidly for AI technology companies within healthcare, drug discovery and
agriculture. Industry and investment firms dedicated approximately $5 billion in financing for
AI companies across all sectors in 2016. For the healthcare and drug discovery industry
approximately $790 million of this was pledged in financing deals for the sector. In parallel,
Agritech start-ups have raised over $500 million during the past five years (2012 to 2017) to
introduce AI-based solutions that will improve productivity and increase yields. Their
technologies range from analysing satellite images to identifying healthy strains of plant
microbiome and agriculture robotics.
In terms of key commercial players, the multinational tech companies are leading the way
for the healthcare industry. Thereafter, the sector becomes very fragmented with numerous
well-funded start-up ventures developing platforms for medical imaging, diagnostics, virtual
nursing, personalised medicine, patient monitoring, surgery, hospital workflow and drug
discovery, among others. In the field of agriculture, the leading companies are a mixture of
software, analytics and hardware start-up companies backed by VCs or industry giants. Start-
ups that focus on robotics and machine learning with applications in agriculture started
gaining momentum in 2014 and appear to be at the forefront of AI applications in
agriculture.
A particular trend for the AI platforms under development is the evaluation of unstructured
data such as clinician notes, clinical and research literature and patient data. This trend is
1
Healthcare Market Artificial Intelligence and Advanced Analytics, Research & Markets
(2017)
emphasised by the patent analysis conducted in this report, which identified some of the key
applications of AI technology. The analysis highlights that patents based on medical imaging
analysis and image-based detection methods are prominent. It is therefore unsurprising that
companies operating in computing, electronics and imaging represent the majority of patent
holders. Key players include Philips, Samsung and IBM, among others. Patent filing has
increased rapidly over the last two years, in line with advancements in big data, neural
networks, parallel processing and cloud technology. AI technologies are just now becoming
mainstream mainly because the hardware and processing technology has caught up with the
vision. The critical mass of data needed to “teach” computers now exists and the storage
and processing power to execute deep learning are available, fast, and cost-effective.
Partnership is a key theme for the sector. Tech companies are partnering with innovative
biotech- and healthcare-focused AI start-ups, as well as hospitals and academic institutions
to develop promising, novel solutions. For example, IBM Watson recently agreed a
$240million deal with MIT to create an MIT-IBM Watson AI lab for advancing AI hardware,
software and algorithms across industries including healthcare and cybersecurity. The
partnership aims to also explore economic and ethical implications of AI to society.2
Similarly, pharmaceutical companies, which have been historically slower to explore the
potential of AI, are establishing research collaborations and undertaking venture financing
deals to ensure they can compete in the space in future.
Collaborations and partnerships are also occurring in agriculture. Monsanto has recently
established a collaboration with Atomwise. Atomwise’s AtomNet technology will employ
powerful deep-learning algorithms and supercomputers to analyse millions of molecules for
potential crop protection products. Monsanto has also established a research collaboration
with Second Genome. The collaboration will leverage Monsanto’s extensive genomic
databases and Second Genome’s expertise in analysing microbial function through
metagenomics, protein discovery, machine learning, and predictive analytics to develop
next-generation insect-control solutions.
A search for AI-related research papers identified 621,998 publications across all subject
areas and more than 70 countries active in AI research. Publications have increased
dramatically from 2001 onwards with machine learning driving innovation and attracting
significantly higher attention from researchers comparing to the remaining AI fields
described. A geographical analysis of the results correlates with the geographical analysis of
the patent search and deal flow, which suggests that the majority of innovation in the field
of AI comes from the United States and China.
There are huge commercial possibilities afforded by AI. The key promise of AI as a
technology solution is that, in each application, it will gain more experience in the field over
time, resulting in continual improvement in precision, efficiency and outcomes. This has
2
https://arstechnica.com/information-technology/2017/09/ibm-partners-with-mit-for-240-
million-fundamental-ai-research-project/
tremendous utility for companies across the life sciences, and ultimately patients
themselves.
INTRODUCTION
Artificial Intelligence is an umbrella term for multiple computer science technologies which
can be combined in different ways to perform capabilities normally requiring human
intelligence. Technologies which form the basis of AI are discussed throughout this report,
but broadly fall into the following categories:
• Cognitive Computing
• Robotics
• Data Mining
These technologies have the capability to: Sense, Comprehend, Act and Learn.3 AI is
essentially a smart solution for compiling and analysing data, taking account of more
variables than humans are able to, categorising the new data, predicting trends and
ultimately identifying solutions. “Sensing” technologies such as computer vision and audio
processing involve perceiving the environment by acquiring and processing images, sounds
and speech. “Comprehending” technologies include natural language processing and
interference engines which can enable AI systems to analyse and understand the
information in knowledge representation. “Act” capabilities of AI allow systems to take
action through expert systems technologies, machine learning and inference engines.
Examples of areas where AI has undergone an evolution from automated tasks to problem-
solving technologies are: gaming, mathematics, chess and the creation of chatbots capable
of having human-like conversation; software-defined intelligence such as predictive analytics
using raw numerical data; the emulation of human brain capabilities such as understanding
language, speech and sound and interpreting images and videos.4 The progression and AI
categories can be described using the following definitions:5
3
Why AI is the Future of Growth, Accenture (2016)
4
The Future of AI, Frost & Sullivan (2016)
5
Sizing the Prize, What’s the real value of AI for your business and how can you capitalise?
PWC (2017)
Automated Intelligence
Assisted Intelligence
Automation of manual
or cognitive tasks Augmented Intelligence
which may be routine These AI systems
or not. This automates allow people to Autonomous Intelligence
existing tasks as seen perform tasks faster AI systems that
in manufacturing and more effectively. adapt human
decision making, AI systems that can
processes. They assist humans to
continuously adapt to situations and
make decisions or take
learning from the enviornment without
action. These are hard
interactions with human assistance.
wired systems that
humans, the These AI tools act
don't learn from the
enfironment and autonomously.
interactions.
data.
The key driving factors enabling the growth of AI solutions across all industries are:3
• Growth in big data – data is the fuel for AI solutions. Global data has been growing at
a compound annual growth rate (CAGR) of >50% since 2010, with increasing
connection of devices and digital world solutions. An exponential growth of data is
fuelling AI growth.
AI has the potential to disrupt any industry. Those currently at the forefront include
transport, telecommunications and retail. Here we focus on the technology as applied to the
life sciences industry, the state of the sector and commercialisation opportunities. The key
markets analysed in this category are healthcare, drug discovery and agriculture. This is
predominantly demonstrated in deal-making activity, as well as patenting and market needs
analysis.
AI healthcare systems are one of the fastest growing applications. The market is expected to
reach $6.6 billion by 2021, at a CAGR of 40-50%. Platforms are being developed to offer
solutions for population health management, patient management, personalised medicine,
triaging, surgery and diagnostics. A particularly active, pioneering field is diagnostics and
medical imaging, such as AI analysis of CT scans, MRI scans, picture archiving and
communications.
The development of AI tools serving the healthcare industry extends to drug discovery, with
solutions for identifying and processing promising therapeutic candidates more quickly and
effectively than is currently possible, demonstrating the potential to disrupt the
commercialisation timelines of the pharmaceutical and biotechnology industries.
Important clinical trials and pilot tests are underway. Solutions already exist for robotic
surgery, imaging and diagnostic analysis. However, much needs to happen before clinician
and drug development use of the tools are embedded in current industry infrastructure and
daily patient care routines. Convincing regulators, healthcare providers and patients to use
the tools, as well as prove they are useful and reliable, will be the next big steps for the
healthcare and pharmaceutical industries. In parallel, navigating concerns about job
automation and questions about reliability of AI algorithms will be essential for the
development of the technology and its application across multiple markets.
With burdened healthcare systems across the world and many regions having underserved
patient populations, AI is anticipated to play a significant role over the next decade and
further in the democratisation of information and distribution of medical resources.
Modern agriculture faces great challenges. According to the UN Food and Agricultural
Organisation (FAO), the global population is set to exceed 9 billion by 2050. To feed this
growing population, overall food production will need to increase by 70% with available
acreage estimated at just an additional 4%. Agriculture needs to increase productivity and
efficiency on all levels of agricultural production, while resources like land, water, energy,
and fertilisers are becoming scarcer.
Digital technologies and AI applications continue to penetrate agriculture – one of the least
digitised industries according to McKinsey research – but at a slower rate compared to other
sectors. Available market forecasts appear favourable and point to a strong growth for AI in
agriculture in the coming years. The total market for AI systems in agriculture stood at
around $168 million in 2015 and is forecast to grow at a CAGR of approximately 23% for the
2017 to 2021 period. The key driving factor for the demand for AI technologies in the
agriculture sector is the surge in demand for agriculture robots.
AI coupled with drones, robots and intelligent monitoring systems has been successfully
deployed in research and field trials. Machine learning is becoming more mainstream and is
set to revolutionise farming by fully automating certain labour activities and management
decisions currently made by farmers.
Agriculture offers vast opportunities for the application of AI solutions. These applications
include drones, robotics, driverless tractors, in-field sensors for crop and soil health,
automated irrigation systems, and predictive analytics, and fall mainly within the greater
precision agriculture framework. Outside of precision agriculture, AI systems could find great
opportunities in areas such as plant breeding, biotechnology, and agrochemical discovery.
MARKET OVERVIEW
HEALTHCARE
The healthcare market for AI is focused on patient management and care, with a key
promise of the developing technology being the identification of patient-centric, data-driven
tools to improve treatment regimens, hospital workflows and disease prevention.6
The AI healthcare market is one of the fastest growing of the AI industry applications. It is
expected to grow from $663.8 million (2014) to reach $6.6 billion by 2021, at a CAGR of 40-
50% (2013-2021).7 AI in healthcare is a relatively new market, with large growth potential as
the technology integrates with the healthcare sector. The market revenue forecasts and
growth rate are plotted in the chart below (base year 2015).8 Note that as a disruptive
technology area, market forecast data for AI applications in healthcare vary greatly as
described in the application breakdown later in this section of the report.
6000 50.0%
5000
40.0%
Growth rate
4000
30.0%
3000
20.0%
2000
1000 10.0%
0 0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenue ($millions) 507 633.8 811.1 1065.11438.42002.7 2882 4298.26662.2
Growth rate 25.0% 28.0% 31.3% 35.1% 39.2% 43.9% 49.1% 55.0%
Axis Title
A snapshot of projected market sizes for healthcare, medical diagnostics & imaging, and
drug discovery are summarised in the table given below. For healthcare as a whole, the
projections are given to 2021 and for drug discovery and diagnostics & imaging to 2024.
6
Biotechnology Report: Beyond Borders Staying the Course, EY (2017)
7
Artificial Intelligence: Healthcare’s Nervous System, Accenture (2017)
8
Cognitive Computing and Artificial Intelligence Systems in Healthcare, Frost & Sullivan
(2015)
AI-enabled solutions in healthcare are based on data mining of patient information, enabling
that information and making treatment decisions. AI solutions for hospital workflows offer
opportunities to enhance care delivery whilst bringing much-needed cost benefits. Particular
areas of interest are robot-assisted surgery and diagnostics, with some estimates suggesting
that AI offers the potential to improve patient outcomes by 30-40% whilst reducing
treatment costs by as much as 50% in some cases.8 The tools have the potential to alleviate
workload strains on physicians and nurses across the healthcare system. AI voice-enabled
symptom checkers are being developed which function to triage patients to lower-cost
pharmacy or urgent care settings, directing patients to emergency departments only when
emergency care is necessary. The healthcare market is harnessing AI for risk analysis,
imaging and diagnostics, remote patient monitoring and virtual assistance among other
applications.
The growing availability of healthcare data such as electronic health records, prescriptions
and laboratory reports are the key driver of AI in the healthcare market. Combined with
increasing cognitive power of computational technology to analyse and store this data, these
factors are supporting the rapid growth of the market. Some of the healthcare sectors where
AI is identified to be having an impact are described in the diagram below.
Imaging &
Diagnostics
AI
Healthcare
Sectors
Consumer Robotic-
Integrated assisted
Health surgery
Hospital
Drug Discovery
workflow
Sub-sectors of the healthcare market with specific AI applications and corresponding market
values are given in the table below.
Robot-assisted surgery 40
Fraud detection 17
Connected machines 14
Preliminary diagnosis 5
Cybersecurity 2
Robotic-assisted surgery has the greatest value potential in harnessing AI according to the
research above. Robotic-assisted surgery is already used in treatments such as
hysterectomies, prostate removal surgery, bariatric surgery and hernia repair. An RBC
Capital Markets survey found that U.S. surgeons expect that about 35% of operations will
involve robots in five years, up from 15% in 2016.9 Solutions are being developed using AI to
integrate patient medical records with operating metrics to guide and enhance physician
precision during procedures. These platforms will learn from surgical experiences to improve
outcomes. Much of the activity in the sector so far is in surgical solutions for orthopaedic
surgery. Value projections will increase with the development of robotic solutions for a
greater diversity of surgery. An example is Mazor Robotics which is using AI for both
minimally invasive surgical operations and more complex procedures. The tool harnesses CT
scans loaded into a 3D surgical planning tool to assist surgeons in placement for spinal
surgery with a robot arm guiding the instruments in precision surgery.
Virtual and remote nursing, to assess patient symptoms and deliver information or alerts to
clinicians when patient care is needed, would reduce unnecessary hospital visits. These tools
can learn and develop beyond patient triage, gaining expertise in patient treatment
recommendations. Sense.ly is a virtual care AI developer working on a nurse avatar named
9
http://fortune.com/2016/07/28/surgical-robot-development-intuitive-surgical-medtronic-
google/
Molly. It is connected to physicians in real time when more detailed information is needed. It
is also integrated with wired and wireless medical devices.
Hospital administrative workflow assistance tools would offer capabilities such as voice-to-
text transcription for recording patient notes, prescriptions and tests. This could gradually
eliminate non-patient care activities, saving work time for physicians and nurses.
Personalised medicine and genomics will enhance the personalised treatments market,
supported by the growing volumes of big data in healthcare and analytics capabilities to
carry out data mining and accelerate smart medicine.
TECHNOLOGY SEGMENTATION
AI is particularly useful for analysing unstructured data. Unstructured data in the healthcare
industry currently is common, with clinicians having to manually complete reporting. It is
estimated that over 75% of all patient information is not structured.10 Therefore AI can be
applied widely across the healthcare sector.
The data input to the machine learning technologies could come from a number of sources
in the healthcare delivery system including patient electronic medical records, medical
device data, diagnostic reports, medical images, laboratory reports, clinical scientific
literature, social media feeds and healthcare insurance claims.
Technology Description
platform
Deep Learning A form of machine learning in which the platform can carry out
unsupervised learning via neural networks, when given certain data.
Importantly, the evaluation of the information has not been
programmed. Tools are being developed to process large volumes of
medical data, reducing uncertainty in treatment decisions.
Robotics Surgical robotic systems are leading the AI applications in healthcare,
delivering improvements in precision and accuracy of surgical
procedures, enhancing quality of care.
Personal These solutions provide digital monitoring of patients vital statistics
Assistant and alert nurses when care or changes are required.
Natural Language These systems function by converting lengthy narrative text such as
Processing clinical notes into actionable insights. The technology identifies key
concepts and phrases in source material to deliver fast analysis.
Machine These systems are able to predict a pattern or analyse a trend in a
Learning dataset, which for healthcare can shape clinical outcomes. Deep
learning is a form of machine learning.
10
https://aibusiness.com/how-is-philips-improving-healthcare-through-ai/
11
Artificial Intelligence & Advanced Analytics in Healthcare, Frost & Sullivan (2017)
Technology Description
platform
An assessment of technology readiness and technology relevance levels for the above AI
platforms in the healthcare industry was conducted in 2016 market analysis by Frost &
Sulivan.11 The research has graded these in the adapted radar chart summary below:
Speech Recognition
(SPRCG)
The penetration of the AI technologies in healthcare, including medical devices & imaging,
pharmaceutical & biotechnology and healthcare IT solutions are discussed in more depth
throughout this report. In summary:
Medical Devices & Imaging: robotics (RBTCS), digital personal assistant (DPAST) and
cognitive computing (CGCTG) technologies are thought to have the highest penetration of AI
solutions in this application. Speech recognition (SPRCG) is regarded to have a medium level
of penetration. Those technology basis with lower penetration include deep learning, query
interpretation, natural language processing, machine learning, neural networks, pattern
recognition, fuzzy logic and support vector machine. Nonetheless this analysis was
conducted in 2016, and the sector is fast evolving with NLP solutions and neural networks
companies and technologies emerging across the sector. In the medical imaging arena CT
scans, MRI scans and picture archiving and communications (PAC) have enabled doctors to
achieve 60-70% more accurate results instantaneously.12 Emergence of novel and promising
applications for disease diagnosis and monitoring is anticipated to drive artificial intelligence
market growth.
In addition to robotics for surgery and digital robotic personal nursing assistants, another
increasingly important application for AI in healthcare is in clinical research. This is enhanced
by the growing use of AI tools in genomics and precision medicine, which promises to
further the agenda for personalised treatments. Again, big data analytics capabilities and the
growing volumes of healthcare and patient data are aiding this and identifying appropriate
patients for clinical trial research, which will drive better personalised medicine in patients.
The pharmaceutical, biotech and healthcare industry as a whole has experienced a shift in
focus to creating value in a patient-centric approach. AI technologies such as natural
language processing, neural-network capability and deep learning allow unstructured data
to be processed for more accurate and faster diagnosis. Key drivers for diagnostics include:
12
https://www.gminsights.com/industry-analysis/healthcare-artificial-intelligence-market
The significant number of technologies under development and in prototype or clinical trials
suggest that AI-powered diagnostics departments will feature in many future hospitals.
Diagnostic centres are leveraging deep learning and pattern recognition to reduce diagnosis
turnaround time, and improve pathology workflow efficiency and accuracy of diagnosis.
Core AI technologies behind diagnostic and imaging platforms are based on deep learning
and speech recognition.
Market analysis on the technology readiness level (TRL), patent intensity and publications for
AI in diagnostic and imaging in healthcare was conducted by Frost & Sullivan.11
Cancer diagnostics and imaging are a current core focus for AI powered diagnostics,
demonstrated by the start-up companies, deals and hospital partnerships emerging in the
field. Radiology in particular is one area where AI solutions are being developed for analysing
CT scans and X-rays to efficiently identify potentially cancerous lesions. AI in medical imaging
has improved cancer tumour diagnosis at much earlier stages compared to traditional
radiology.12
A key area of early interest is disease prediction diagnostics for far earlier stages of disease
progression than is currently possible. For example, the development of computer
intelligence tools which have the ability to process images taken before disease is diagnosed
such as mammogram pictures, may allow quantification and identification of early pre-
disease signs in complex images which current medical experts are not able to recognise. In
the US AI has been used to review and translate mammograms 30 times faster with 99%
accuracy.13 This has benefits such as a reduction in the need for unnecessary biopsies and
reducing the patient stress of misdiagnosis.
In the diagnostics arena, two of the most well-known players include IBM Watson for Health
and Google DeepMind Health. Example diagnostic and imaging companies and partnerships
include:
• Hospitals and speciality cancer centres such as the Mayo Clinic (US) and Kaiser
Permanente have been adopting cognitive computing solutions such as IBM’s
Watson to diagnose cancer much earlier, with demonstrated benefits of creating a
customised treatment plan for patients.
• Infervision and Shanghai Changzheng Hospital (China) are partnering to assess lung
cancer patient lesions in CT scans and X-rays. Infervision also partners with GE
Healthcare, Cisco and Nvidia; working across 20 tertiary grade A hospitals in China.
13
What doctor? Why AI and robotics will define New Health, PWC (2017)
The technology uses CT images to learn the core characteristics of lung cancer to
detect the suspected cancer features through different CT image sequences.14
• Zebra Medical Vision, Enlitic, qure.ai and Mckesson are developing AI-based
solutions for early diagnosis of disease, especially cancer and psychiatric disorders.
These developers are harnessing deep learning, cognitive computing, machine
learning and neural network algorithms to create platforms to support clinical
decision making.
Over the longer term, robotic solutions to carry out diagnostics and treatment is a real
possibility.
14
https://www.forbes.com/sites/jenniferhicks/2017/05/16/see-how-artificial-intelligence-
can-improve-medical-diagnosis-and-healthcare/#148fa0506223
15
www.humandx.org/contribute/tutorial
16
https://www.wired.com/story/ai-that-will-crowdsource-your-next-diagnosis/
• Biometric indicators
• Prescription regimens
• Diet tracking
• Fitness tracking
• Diagnostic testing
• Mental well-being
• Genomic screening
It is envisaged that data generated in these areas using apps and wearable technology can
be captured, aggregated, stored and scrutinised with analytics technology to create tailored
solutions in:
• Wellness recommendations
Company Description
CardioDiagnostics The company has developed a device able to remotely monitor a user
for heart irregularities and is used to improve cardiac monitoring and
rhythm management
SkinVision The skin cancer app uses computer vision to analyse skin lesions, it has
received funding from dermatology company LEO Pharma.
It is possible that consumer and wearables data can be used for patient healthcare insurance
claims in countries such as the US where healthcare support is largely driven by private
insurance, as well as fundamental uses for patient care guidance and more broadly to inform
government and public policies.
DRUG DISCOVERY
Drug development statistics suggest that for a drug to progress from pre-clinical research
stage to approval and patient treatment the average timeframe is 12 years, with a mere
0.1% of candidates progressing to clinical trial and only 20% of these progressing to
approval.13
The past few years has seen significant and growing interest from venture capital and
pharma companies in the concept of AI. This is in the wake of the pharmaceutical industry’s
long-running scepticism about the promise of the technology. Estimates suggest that drug
discovery held over 35% of the global artificial intelligence market share in 2016 and is
anticipated to grow to $4 billion, witnessing more than 40% CAGR to 2024.12
The power of AI to generate significant improvements in cost, quality and clinical trial
success has encouraged many pharmaceutical companies to explore AI along the R&D value
chain, whether in drug discovery to address the key pain point of clinical failure rates, real-
world patient outcomes or to better understand their customers.17
AI tools are becoming available and undergoing development for fast and efficient processes
in what is known as “intelligent drug design” to:
• Compound discovery
Given that the drug discovery process typically involves the identification of hundreds of
compounds, harnessing the approaches outlined to streamline development timelines is an
appealing prospect for the industry.
The approach many pharmaceutical companies are taking is to embark on partnerships with
AI venture-funded start-up companies. Often sharing their own data, the pharma companies
are assessing the potential of AI to identify new drug targets, new uses for existing drugs or
to secure faster approval of medicines.18
Companies such as Pfizer, Novartis and Merck are advancing AI-based technologies such as
deep learning and pattern recognition to reduce turnaround time involved in the process of
developing new drugs. Several others are partnering with high-profile AI drug discovery
start-up companies in research collaboration deals. Pharma giants such as Sanofi, Takeda
Pharma, Merck and AbbVie have recently announced such partnerships.
17
AI powered drug discovery captures pharma interest, Nature Biotechnology (2017), 35, 7
18
https://www.ft.com/content/a2cc8f54-bd47-11e7-9836-b25f8adaa111
PENETRATION OF AI TECHNOLOGIES
The heat map below is an analysis of the penetration of the technology sub-sectors under the AI umbrella, to broad segments within the healthcare and
drug discovery industry (Frost & Sullivan). It gives an idea of how the sub-sectors are progressing in the space. For Medical Devices & Imaging for example,
robotics, deep learning and cognitive computing are considered hot areas, with the use of speech recognition increasing.
Segments DPLRG RBTCS DPAST QRINT NATLP MACLG SPRCG NNWRK PTRGN FZLGC CGCTG SVMCE
Healthcare IT Solutions
GEOGRAPHICAL DISTRIBUTION
The geographical distribution of AI in the healthcare & drug discovery market is dominated
by the US. In 2016 the market size was estimated at $325 million with a projected CAGR of
35% over the next 8 years,12 suggesting a projected market of $3.5 billion by 2024. In parallel
to growing big data collection and analytics, the US Federal authorities are implementing
initiatives to reduce cost and improve the quality of healthcare services which is expected to
drive adoption of AI across the region.
The UK is expected to drive the European healthcare AI market, with the market size
expected to reach $800 million by 2024. R&D focus in the UK on genomics, as well as
increasing NHS resource going towards more efficient delivery of healthcare, is expected to
fuel the AI development and adoption for healthcare in the region.
China is forecast to experience the greatest growth with an anticipated 45% CAGR over the
coming 6 years to 2024. Supportive government environments and drive for efficiency and
democratisation of health is driving the market across all these developed regions.
AGRICULTURE
Modern Agriculture faces great challenges. The agricultural sector has grown into a highly
competitive and consolidated industry. In addition, the agriculture supply chain has to
contend with factors such as climate change, geographical diversity as well as economic and
political factors to guarantee sustainable production.
According to the UN Food and Agricultural Organisation (FAO), the global population is set to
exceed 9 billion by 2050.19 To feed this growing population overall food production will need
to increase by 70%. With available acreage estimated at just an additional 4%, it is not
possible to simply plant more crops or breed more livestock. The only alternative is to
intensify agriculture on its existing footprint which means doing more with less.
The word “decision” is key in defining how AI is poised to impact agriculture. Just as AI is
helping doctors and researchers make better and more informed decisions, AI has the
potential to assist or fully automate certain labour activities and management decisions
currently made by farmers.
In a recent study, the European Parliament recognised big data in agriculture as a way to
increase productivity, food security and farmer incomes.20 AI is not expected to replace
farmers’ knowledge and intuition but to complement and improve upon how decisions are
made, especially as data generation, collection and analysis continues to expand. The main
applications of AI and how they are expected to shape the future of agriculture are discussed
in the following section.
MARKET SIZE
While AI has become a mainstay of the tech community, the agricultural field and the
associated equipment and service providers have yet to vigorously pursue AI applications in
agriculture.
Digital technologies and AI applications continue to penetrate agriculture – one of the least
digitised industry according to McKinsey research21 – but at a slower rate compared to other
19
http://www.fao.org/fileadmin/templates/wsfs/docs/Issues_papers/HLEF2050_Global_Agri
culture.pdf
20
Precision agriculture and the future of farming in Europe, European Parliament (2016)
21
McKinsey Global Institute – Digital America: A tale of the haves and have-mores
(December 2015)
sectors. This may be due to the overall lack of familiarity with AI advances or the fact that
agriculture is traditionally a less tech-savvy field compared to fields such as drug discovery
and healthcare.
Due to the disruptive nature of AI, forecasts for the market size of AI applications in
agriculture vary widely. However, all available forecasts appear favourable and point to a
strong growth for AI in agriculture in the coming years. According to BofA Merrill Lynch
Thematic Investing, the total AI Revenues for 2015 stood at approximately $2.1 billion.22
Tractica estimates that Agricultural applications account for 8% of the overall AI market23
which means that around $168 million was spent on AI technologies for agricultural
applications in 2015. Although AI applications in agriculture will continue growing, their
overall market share is expected to decline as its growth will likely be outpaced by the
growth in sectors such as healthcare, diagnostics and drug discovery.
Other
8%
Ad Service
Technology
Retail 19%
12%
Agriculture
Oil and Gas 8%
7%
The global AI market for agriculture is forecast to grow at a CAGR of approximately 23% for
the next four years (from 2017 to 2021).24 The key driving factor for the demand for AI
technologies in agriculture sector is the surge in demand for agriculture robots. This growth
22
BofA Merrill Lynch, Thematic Investing - Future Reality: Virtual, Augmented & Mixed
Reality (VR, AR & MR) Primer (September 2016)
23
https://www.lordabbett.com/en/perspectives/equityperspectives/will-artificial-
intelligence-robotics-add-or-subtract-jobs.html
24
Technavio - Global Artificial Intelligence (AI) Market in Agriculture Industry 2017-2021
in demand can be attributed to the relative reduction in agricultural workforce and the trend
toward digital agriculture and new farming technologies.
60,000
500,000
($ Millions)
50,000
(Units)
400,000
40,000
300,000
30,000
200,000
20,000
10,000 100,000
0 0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
AI APPLICATIONS IN AGRICULTURE
Agriculture offers numerous opportunities for the application of AI solutions. These
applications will help farmers and ag-bio firms alike to better understand the natural
systems in which crops grow, and allow them to use fewer chemicals and pesticides. The
ultimate aim for the sector is to employ AI systems to optimise growth, tackle diseases and
pathogens, and be able to monitor livestock, crop and soil conditions round the clock.
The complexity of the agricultural production asks for progress in modelling capabilities
However, reliable predictions require an interdisciplinary approach and a range of
technologies that include robotics, computer vision, sensors, image analysis, big data and
environment interaction.
Supercomputers and AI-based algorithms are then responsible for analysing all the data
gathered from in-field sensors, satellite images, drones, etc., and making decisions such as
25
https://www.tractica.com/newsroom/press-releases/agricultural-robot-revenue-to-reach-
74-1-billion-worldwide-by-2024/
when to harvest, when to irrigate and when to apply agrochemicals. At present the main AI
applications in agriculture can be summarised by the figure below:
Irrigation
Systems
Predictive
Drones
Analytics
AI in
Agriculture
Driverless
Robotics
Tractors
Traditional irrigation management is an arduous task which relies on historical weather data
to predict the best utilisation of resources. Newly designed irrigation systems that rely on AI
technology are fully automated and are able to measure and maintain the desired soil
conditions (e.g. moisture) in real-time in order to increase yields. This reduces the need for
manual labour, reduces costs and allows farmers to better manage their water supply. In
addition, when sensors, machine learning and predictive analytics are brought together,
smart irrigation systems are able to analyse weather conditions and predict the amount of
water needed.
Traditional methods of soil management require the farmer to survey and test the quality of
soil to plant seeds and thereafter manually carry out plantation and breeding processes.
With the development of AI technology, it is easier to identify the right time for plantation or
harvesting. Advanced sensors and accompanying AI technologies make the entire task much
simpler for the farmer.
In a similar manner, conventional crop health monitoring methods are incredibly time-
consuming and in most cases require visual inspection of the crops. Newly developed
automated detection and analysis technologies – such as hyperspectral imaging and 3D laser
scanning – are expected to substantially increase the precision and volume of data collected
and help identify any diseases or potential infestations.
3. Animal Husbandry
Animal husbandry, an integral branch of agriculture concerned with the care and
management of the livestock, deals with all the technologies that ensure and monitor animal
health, genetic qualities and behaviour. Gathering useful information and monitoring
animals performance and behaviour in real-time through AI will allow farmers to manage
their livestock more effectively, with less effort and minimal supervision.
Automated milking parlours is one example of an animal husbandry tool which exhibits an
increasing application of AI technology. AI-enabled sensors allow the automated milking
parlours to analyse milk quality and flag for any abnormalities. Furthermore, companies such
as DeLaval and IceRobotics, which develop equipment and systems for milk production,
animal husbandry and data collection and analysis products for monitoring cow behaviour,
are expected to move towards integrating AI systems in the near future.
AI robotics and drones for farming applications are seen as some of the most beneficial
technologies. Robotics are the answer to the much sought-after scaling-up of farm
operations and the need for automation technologies in agriculture. As farmers are
automating their operations, robots and drones have become an integral part of the
agriculture in improving yield and product quality.
AI forms the backbone of robotics, as it enables a machine to use language processing and
deep learning capabilities to take cognitive decisions. For example, in May 2017, the start-up
Abundant Robotics developed an apple-picking robot. In addition, more recently, Harper
Adams University tested autonomous drones and vehicles that can be used to plant,
maintain and harvest barley.
Drone technology is constantly improving, supporting new ways of increasing crop yields
through in-depth field analysis, mapping of crops, long-distance crop spraying and high-
efficiency crop monitoring. Practical applications are constantly evolving and are already
considered invaluable by several farmers.
5. Driverless Tractors
26
Ramcharan et. al. (2017) Deep Learning for Image-Based Cassava Disease Detection,
Front. Plant Sci., 8, 1852
pressure on the existing workforce and allow for more acreage to be worked around the
clock. According to Goldman Sachs, driverless tractors could significantly reduce farm labour
costs and increase farmers’ revenues by more than 10%.27
As far as agriculture is concerned, the autonomous driving trend is mainly focused on large
farm machinery (i.e. tractors). In August 2017, Europe's CNH Industrial, known for its Case IH
tractor brand, unveiled an autonomous concept tractor. The Case IH Autonomous Concept
Vehicle makes use of LiDAR (light imaging, detection, and ranging), GPS, and cameras to
orientate and sense stationary or moving obstacles in its path. The machine is designed to
operate until its operator assigns a new path. Deere and AGCO, two rival farm machinery
manufacturers, also have similar technologies and are working towards replacing farm
machinery with autonomous unmanned versions. Recently Japan has also entered the race
for the development of autonomous tractors with Yanmar, Kubota and Iseki, three different
companies, leading competing robot-tractor projects.
6. Predictive Analytics
In fact, AI systems may find more rapid adoption for the development of new crop varieties,
livestock breeding, fertilizers, or crop protection products than for precision agriculture
applications. This assumption can be supported by two factors:
• Plant and animal breeders and agrochemical developers have been meticulous
about collecting and storing detailed data over the past decade. Consequently, there
is a wealth of available information regarding, sequencing data, SNPs, pedigree,
structure-activity relationships, toxicity and biodegradability of synthetic
compounds.
• The financial gains from accelerating agricultural R&D efforts could be quite large.
As of 2016, Philips McDougall analysis estimated that bringing a new crop protection
product to the market requires the analysis of over 160,000 compounds – equivalent to
more than 11 years of R&D and overall costs that exceed $280 M per commercial product.28
The industry collectively (a total of 11 companies analysed) has dedicated over $2.6 billion to
27
https://www.cnbc.com/2016/09/16/future-of-farming-driverless-tractors-ag-robots.html
28
The Cost of New Agrochemical Product Discovery, Development and Registration in 1995,
2000, 2005-8 and 2010 to 2014. R&D expenditure in 2014 and expectations for 2019,
Phillips McDougall (2016)
the R&D of new agrochemicals per annum. AI systems can help speed up the process and
improve efficiency.
Monsanto is one of the first big ag-bio firms to recognise the untapped capabilities of AI
systems in the field of agricultural inputs. For example, Monsanto and Atomwise, a start-up
that develops AI systems for molecular discovery, have recently formed a research
collaboration to increase the speed and probability of discovering new crop protection
products.29 This collaboration is leveraging deep learning algorithms and supercomputers to
analyse millions of molecules for potential crop protection products during early stage
chemical discovery. Atomwise could help Monsanto reduce the time and cost of discovering
new active ingredients significantly.
The benefits of AI are also applicable to plant breeding. Monsanto estimates that the
evaluation of corn hybrids in field trials prior to commercialisation can take up to 8 years.30
Historically, a breeding program will select from a set of hundreds of thousands of varieties
around 500 combinations to move on to trials, a selection constrained by the logistics and
costs associated with the field trials. To address the issue, Monsanto has developed an AI
algorithm, based on historic field trial and molecular market data, which can predict which
hybrids will exhibit the best performance during their first year of field testing. This
algorithm has helped Monsanto accelerate its breeding process and scale the size of its
breeding pipeline five-fold.
In a similar manner, Syngenta has recently announced a partnership with the ‘AI for Good
Foundation’ to launch the ‘Syngenta AI Challenge’, an international competition focused on
leveraging AI tools for use in seed breeding.31 Entrants are given access to datasets that
include seed genetic information as well as soil, weather, and climate data. The ultimate goal
is to develop algorithms that can determine which variety or varieties should be planted in a
given area under specific conditions.
On the academic front, researchers at Carnegie Mellon University are working on a new
initiative called FarmView which combines sensors, robotics and AI to create mobile field
robots that will improve plant breeding and crop-management practices. FarmView uses AI
tools to relate plant phenotype data with genetic and environmental data and help
29
https://monsanto.com/news-releases/monsanto-and-atomwise-collaborate-to-discover-
new-crop-protection-options-using-artificial-intelligence-technology/
30
https://www.forbes.com/sites/themixingbowl/2017/09/05/can-artificial-intelligence-help-
feed-the-world/#517e3daa46db
31
https://www.prnewswire.com/news-releases/syngenta-and-ai-for-good-foundation-
launch-new-ai-challenge-to-address-world-hunger-with-machine-learning-
300398665.html
understand the relationships between genetics, environment, and crop performance. On the
breeding side, University College Dublin (UCD) has been working on an algorithm that
makes use of statistical analysis coupled with machine learning to predict phenotypes in
crops and animals based on sequencing data, SNP data, and pedigree. UCD has recently
launched a start-up around the technology called Prolego Scientific.32
PATENT INTELLIGENCE
This report focuses largely on the application of AI in the life sciences. Given the importance
of IP to the industry, we have conducted a market overview analysis of how the technology
is impacting patent intelligence and analytics.
The number of IP assets globally is growing. According to the WIPO there were 2.7 million
patent applications made in 2015 – a 7.8% growth in patent filings on 2014. This upward
trend in filings has continued for at least 20 years. Therefore, IP documentation and
resources are growing. Finding relevant information in this vast amount of data is becoming
more difficult. Historically, searches have been carried out manually, with static search
databases being the only support tools.33 Patent specialists have long used Boolean and
positional search for patent-related discovery, combing through large amounts of literature
using advanced syntaxes and manual categorization systems. The IP industry is another
market where AI is at a relatively early stage but shows great promise, by improving both
retrieval efficiency and accuracy. Modern searching can overcome the inherent ambiguities
that confound classic keyword search by using machine learning techniques.34
AI and machine learning can not only automate the process of searching huge databases but
also store and use previously collected data to improve the accuracy of future searches. AI
can also be used to provide insight into a geographical or vertical market. For instance,
insight into the strengths and weaknesses of markets in certain countries could be cross
referenced with competitive IP data to deliver an instant overview of the most beneficial
geographies to apply for further protection. By employing big data approaches to manage
technology intelligence, companies can foster new forms of adaptive learning in innovation
and strategy.
INDUSTRY APPLICATIONS
Key tasks associated with machine learning techniques, integrated into commercial software
for IP analysis, are clustering, classification and spatial concept maps.35 Clustering normally
comprises unsupervised methods of organizing document collections based on a similarity
comparison between each member. With a fixed number of clusters identified at the outset,
32
http://www.prolegoscientific.com/
33
http://www.ipwatchdog.com/2017/07/27/role-artificial-intelligence-intellectual-
property/id=86085/
34
http://www.ipwatchdog.com/2017/10/07/nothing-artificial-intelligence-ai-meets-
ip/id=88517/
35
https://patinformatics.com/machine-learning-in-patent-analytics-part-1-clustering-
classification-and-spatial-concept-maps-oh-my/
document collections that meet a threshold similarity component are grouped together. The
two most often used algorithms in patent analysis tools are k-means, and force directed
placement.
Classification, on the other hand, is usually accomplished with a supervised machine learning
method that uses learning sets to identify key attributes of documents in a category. New
documents are compared to the learning collections and assigned to a class based on their
similarity to the documents that have already been assigned to the category. Two frequently
applied classification models are artificial neural networks, and support vector machines.36
As applied to patent analytics, the most frequently used sources of content, for both
clustering and classification exercises, come from patent classification codes, and raw or
standardised text, from a source document.
Spatial concept mapping generally begins with clustering or classification methods, but adds
an extra component – identification of relative similarity between the categories created to
the task. The tools involved arrange the document clusters or classes in two-dimensional
space by considering the similarity of the documents, or clusters, relative to one another,
over the entire collection.3 Clustering methods create mathematical representations of the
documents, which are then organised into clusters and visualized into “maps” that can be
interrogated for analysis. One of the most well-known classification-based methods is the
Kohonen Self Organizing Map – a type of artificial neural network (ANN) that is trained using
unsupervised learning to produce a low-dimensional (typically two-dimensional), discretised
representation of the input space of the training samples, called a map.36
A pioneering method in spatial concept mapping is the ThemeScape37 tool, which accesses
titles and abstracts, claims, and/or the full-text of patent documents, as well as various fields
in the Derwent World Patent Index (DWPI). A particularly powerful combination is the use of
the Advantage, Novelty and Use fields of the documents of interest. These fields highlight
key aspects of the inventions associated with the patents, and generally produce maps that
highlight the differences, and uses of the corresponding technology.38
Existing solutions fail to take into account that companies often use different words to
describe similar inventions. This makes search efforts based on the similarities between
words prone to miss relevant prior art. Additionally, existing techniques do not account for
temporal changes in the terminology used to describe particular inventions. This is not a
trivial omission as, by definition, the search for prior-art requires comparing an invention
with others produced at different points in time.39 In the past decade, natural language
processing (NLP) systems have been applied to searching patents, and a variety of
information retrieval systems that incorporate written text have made appearances in the
patent space.
36
https://patinformatics.com/machine-learning-in-patent-analytics-part-2-binary-
classification-for-prioritizing-search-results/
37
https://clarivate.com/products/derwent-innovation/
38
https://patinformatics.com/machine-learning-in-patent-analytics-part-3-spatial-concept-
maps-for-exploring-large-domains/
39
https://patinformatics.com/ai-patents-applying-machine-intelligence-to-patent-searching/
The European Patent Office’s “Smart Search” tool already uses AI to guess the patent field in
which to search,40 while the Japan Patent Office plans to begin using artificial intelligence
technology in 2018 to process patent, trademark and design applications. It will apply
pattern analysis and recognition software to a number of due diligence tasks where ample
documentation exists to “train” the software.41
Companies such as IP.com and AI Patents have developed AI-enhanced semantic searches,
enabling the use of ordinary language to retrieve documents containing similar concepts or
meanings. Here, a deep belief neural network extracts (“learns”) concepts and meanings
from patent and related literature using algorithms which encode core document concepts
and queries into highly comparable semantic mathematical vectors that help to “see
through” limitations of language.34
Meaning is discovered through statistical analysis of word patterns and distributions natively
occurring in massive collections of patent documents. Neural network machine learning
systems analyse the large-scale probability and distributional properties of words in
document collections. The derivation of meaning from these patterns is well supported in
the technical literature and is referred to as the "distributional hypothesis of meaning." The
Distributional Hypothesis refers to words with similar distributional properties having similar
meanings. This statistical approach currently dominates the field of NLP and there is an
enormous literature on it as well as rapidly advancing practical applications from the biggest
technology companies in the world including Google, Apple, Facebook and Amazon.42
The most advanced intellectual property and patent search tools are powered by more than
just neural network analysis and the resulting semantic vectors. They also build a language
model and a knowledge graph of the literature — and use a smart combination of these
technologies to provide accurate results. Technology like this is the next generation engine
for today’s Boolean/positional searchers. Deep learning and neural networks, combined with
statistical models, are the next steps to applying AI to patent searching. Deep learning AI
discovers contextual relationships between words. It captures "o-nyms" – synonyms and
more – that can expand or narrow the scope of search.
These "similar" words are a roadmap to a more precise, semantically relevant search that
delivers more complete, useful results with less “noise” and fewer false positives.
KEY PLAYERS
Companies using AI for patent intelligence are outlined below. Most are small, specialist
organisations providing a patent searching platform based around AI-enhanced semantic
searches. Many are recently-established platforms, or are still in the product development
stages, but are developing next-generation searching capability for this emerging market.
40
Hitchcock, D. (2017) Patent searching made easy: how to do patent searches online and in
the library. Berkely, CA: Nolo
41
https://asia.nikkei.com/Politics-Economy/Policy-Politics/Japan-looks-to-AI-to-simplify-
patent-screening
42
http://ip.com/why-ipdotcom/semantic-search/
AI PATENTS
AI Patents (Durham, NC) has developed a conceptual, free-form search engine that
addresses the challenge that the same idea can be described in multiple ways, developing a
search process that “learns” from thousands of patent examination decisions. These
decisions determine that two distinct inventions describe the same scientific idea, even
though their exact wording differs.
Based on this learning algorithm, AI Patents allows its users to compare patent documents
based on their underlying scientific ideas, and not merely based on their textual overlap. For
example, when users input a keyword into their search query, they are offered additional
keywords or acronyms which other inventors have used in the past when describing
identical ideas.
AMBERCITE
IP.COM
IP.com is based in Fairport, New York. Its InnovationQ software is powered by a patented
neural network machine learning technology – known as Semantic Gist – which allows it to
understand the meaning of documents and queries. This system allows it to match queries
to documents based on meaning rather than keywords. This can deliver superior precision
and recall because meaning or concept matching overcomes the inherent ambiguities in
ordinary language, especially synonymy and polysemy. InnovationQ understands that two
terms — "vehicle" and "car"—have similar meanings (synonymy) while a single term like
"stream" may have multiple unrelated meanings (polysemy).
As a document collection grows over time, new terms and concepts inevitably emerge while
others may shift in meaning. For example, phrases like "internet of things," and "deep
learning" have gained currency in the technical literature in recent years. The same is true
for individual words like "multicore" or "qubit". Semantic Gist automatically adjusts to these
changes in the topical composition of the document collection. It detects this "semantic
drift" through its learning algorithm and re-weights concepts and topics accordingly. This
makes the system self-evolving and allows it to sustain high precision and recall in the
retrieval task as the balance of topics and concepts in a document collection changes.10
DERWENT INNOVATION
Derwent Innovation is the search and analytics platform of Clarivate Analytics (Philadelphia,
PA), providing access to global patent data and scientific literature. It uses machine learning
and modern big data engineering practices to produce new predictive data on the legal
status and expiration date for every patent record in its collection from the DWPI. Having a
clear understanding of the remaining life and breadth of IP is important for determining
freedom to operate, licensing scope and duration, royalty calculations, acquisition due
diligence, and portfolio valuation.
Many factors influence the calculations for Estimated Expiration Date and Estimated
Remaining Life. These include earliest effective filing date, National and PCT filing
procedures, fee payments (or lack thereof), patent term extensions (e.g. SPCs and similar
extensions for pharmaceuticals and agrochemicals). For the United States, other factors such
as the 1995 Rule, terminal disclaimers, and patent term extension and adjustment are taken
into consideration.
ELEMENTARY IP
Elementary IP (San Francsico, CA) is a patent analytics platform which uses deep learning AI
to generate word graphs for more precise searches. It uses proprietary topological clustering
to extract the key elements of invention in a patent document. These elements of invention
are then used as queries for similar document search, yielding better precision. The search
results are quite sensitive to the query terms, and appear to work best for an optimal set of
invention elements, which may be interpreted as the document's "search passphrase" to
unlock the best matches clustered near the top. The user can iteratively refine the
automatically discovered invention elements to optimize the "passphrase."
X-R.AI
X-r.ai are a new (2017) patent prior art search tool, powered by deep AI to make patent
prior art searching faster and more thorough. Currently under development, it has a
particular focus on helping make patent prosecution, licensing, and litigation faster and
more effective for technology companies, and to shut down “patent trolls”. The company is
based in Portland, Oregon.
PATANALYSE
The methodology is based on a pattern recognition algorithm which the company claims can
find an additional 30% of ‘hidden’ patents: those which have been assigned incorrect or
misleading codes by European or US patent offices. The company also uses a self-learning
iteration process to improve the reliability of patent searches – for this software PatAnalyse
has a patent pending.
CLEARACCESSIP
In May 2017, ClearAccessIP (San Francsico, CA) launched a neural network patent search as
a feature of IPDealRoom – its structured diligence tool for organising and structuring an IP
portfolio around the market for goods and services. The first neural network product is “IP
Map”, which uses machine learning to read the contents of a portfolio, along with any
attached patent records and invention disclosures. This then enables weekly updates of the
IP Map, which viewers with access to the IPDealRoom can link to at any time to view a list of
the most closely related disclosures to the IPDealRoom portfolio.
INNOGRAPHY
DOLCERA
Dolcera is one of world’s largest patent analytics companies and is based in California.
Dolcera PCS is a machine learning-driven platform designed to perform instantaneous patent
searches. NLP and machine learning algorithms search multiple data sources beyond patent
literature to generate wider analysis categories.
TEQMINE
Teqmine Analytics was founded in 2013 and is based in Helsinki, Finland. The company
specialises in large-scale IP, patent, and science/technology analysis by developing databases
and machine-learning data mining technologies. Teqmine’s discovery capabilities are based
on complex probability models built on detailed analysis of millions of full-text patents. It
deploys advanced NLP and machine learning data mining algorithms with an almost
unlimited processing volume, obtaining raw patent data (USPTO/EPO/PCT) directly from
issuing offices and re-packaging it for optimal data mining.
Teqmine services are based on two Big Data innovations: patent similarity and technology
mapping. Patent Similarity is based on complex probability models, which use detailed
analysis and classification of millions of full-text patent descriptions. AI is used to discover
contextual similarities, and find all potentially relevant patents. Algorithms match millions of
full-text patents to the patent in question and calculate a similarity index that quantifies
potentially infringing patents. Teqmine’s technology map combines a mix of cutting-edge Big
Data techniques, augmenting traditional cognitive IP and technology mapping processes
with powerful statistical, visual and on-line tools.
AI, which is highly adept at processing large sets of data quickly and accurately, can help
both efficiency and accuracy. This also enables law firms and IP professionals to take on a
more strategic role within the organisation, generating insight from data to help shape
future company performance, whilst leaving the more mundane aspects of IP management
to computers.
Many IP professionals are engaged in analysing the value of their patent portfolio in terms of
the most effective patents, delivering the highest licencing revenues and in which
sectors/countries. By analysing large sets of data, AI is able to indicate where a company’s
portfolio of IP is strongest and weakest. This can, in turn shape future investment decisions
in research and development, help companies understand their relative strengths and
weaknesses in terms of their competitors, and enable companies to understand more about
the potential opportunities in new markets.33
BARRIERS TO ENTRY
Machine learning opens the possibility for cost-effective analysis of full text patent data,
which can mitigate the limitations of de facto standard metadata-based approaches, such as
the subjectiveness of the patent classification process. By employing big data and machine
learning approaches to manage technology intelligence, companies can foster new forms of
adaptive learning in innovation and strategy. However, such approaches require the
augmentation of human judgement in the categorisation and analysis of knowledge with
machine learning methods, prompting serious challenges to the existing corporate foresight
traditions. Leveraging these efforts within companies requires their systematic integration to
existing strategic foresight processes.43
DEALS
Partnerships across industry, academia, hospitals and funding organisations are driving the
development of AI in the sectors discussed in this report. A combination of internet-based
searching and deal information from databases such as Beauhurst and CB Insights (CBI) has
been used to collate information on collaborations, licensing agreements, venture funding
and acquisitions in the life sciences sector based on AI technology.
Tracking deals for the overall AI landscape across all industries, CB Insights data suggests
that during 2016 there were a total of 658 financing deals globally in AI companies, with a
total of $5.02 billion invested (up from $3.1 billion in 2015). In terms of geographical
breakdown, deal activity is predominantly occurring in the US (61.7%), followed by the UK at
(6.9%). Notably China is not included in this dataset, however, figures suggest the country is
an active funder of AI research and companies, such as iCarbonX which received over $150m
in 2017.
The breakdown of countries and the proportional deal activity occurring throughout 2016
for each region is summarised in the chart below.44
43
Suominen et. al. (2017) Firms' knowledge profiles: Mapping patent data with unsupervised
learning. Technological Forecasting & Social Change, 115, 131-142
44
https://www.cbinsights.com/research/artificial-intelligence-startup-funding/
15.0%
2.7%
2.9%
3.3%
3.5%
4.3%
61.7%
6.5%
United States United Kingdom Israel India France Germany Canada Other
There have been a large number of venture deals, which have been further categorised by
industry sector, technology area and year of completion below. Whilst the list is not
comprehensive, and focuses predominantly on deals in 2016 and 2017, it provides an
overview of activity and the nature and size of typical deals. Details of the identified deals
are listed in Appendix 1.
45
https://www.cbinsights.com/research/artificial-intelligence-healthcare-startups-funding-
trends/
46
AI, Healthcare & the future of drug pricing, CB Insights (2017)
47
https://app.cbinsights.com/research/ai-healthcare-startups-market-map-expert-research
48
https://www.cbinsights.com/research/artificial-intelligence-healthcare-deals-funding-
investors/
70 600
60
500
50
400
40
30 300
20 200
10 100
0 0
2012 2013 2014 2015 2016 2017 e
Year
The 2016 record deal amount can be attributable largely to two AI unicorn venture deals
secured by iCarbonX and Flatiron. China-based iCarbonX is focused on developing an AI
platform to facilitate precision medicine, nutrition, preventative care and disease treatment.
The core focus of the company is on solutions for personalised medicine. Flatiron is an
oncology focused AI development company with solutions such as OncologyCloud
integrating patient data with cancer care for web-based solutions.
The split of deal share in USD for AI healthcare start-ups across the different stages of
funding are summarised in the chart below (source: CB Insights).
6%
16%
4%
33%
9%
18%
14%
The most well-established and well-known machine-learning model for drug discovery and
healthcare is IBM Watson. IBM has carried out a number of venture deals and research
collaboration deals in the sector. For example, the company executed a deal in December
2016 with Pfizer to support the company’s immunoncology drug discovery pipeline. This is
representative of a number of deals with the pharmaceutical industry as well as other
healthcare companies and academic institutions.
A European database tracking funding deals for early stage companies, Beauhurst, has
compiled data on AI-based companies and venture deal funding over the past five years. A
search was carried out, narrowing this broad dataset to companies just active across Life
Sciences, Pharmaceuticals, Research Tools, Medical Technology, namely: clinical diagnostics,
medical devices, medical instrumentation; personal healthcare services; nursing and care
services; other personal healthcare services. The search identified 26 relevant companies,
raising a total of £168 million with an average company post-money valuation of £35 million.
The following graphs illustrate the top funded companies in the dataset, including
Benevolent AI and Excientia – both drug discovery companies – and Babylon Health, a
virtual nursing patient-triaging AI company.
49
https://www.xconomy.com/boston/2017/06/26/ge-ibm-race-to-deliver-on-a-i-hype-in-
healthcare/
Babylon 64.1
Benevolent AI 54.7
Excientia 13.2
Your.MD 11
AliveCor 6.77
Now Healthcare Group 4
Sparrho 2.58
Khieron Medical 2.53
Desktop Genetics 1.99
Healx 1.8
OxSight 1.4
Optellum 1
7%
7%
25%
61%
In terms of the fundraising trend, the number of fundraisings recorded and the amounts
raised in this set of European deals has experienced a sharp upward trend between 2016-
2017, as shown on the chart below. The large 2014 figure of £39.2 million was generated
almost entirely by Benevolent AI, which raised £39.1 million.
70 16
Number of fundraisings
Amount raised (£m)
14
60
12
50
10
40
8
30
6
20 4
10 2
0 0
2011 2012 2013 2014 2015 2016 2017
AGRICULTURE
Agritech firms have been experimenting a lot with AI and its potential applications in
agriculture as part of the bigger Precision Agriculture concept. Deals with start-ups that
focus on robotics and machine learning with applications in agriculture started gaining
momentum in 2014.
According to CB Insights, Agritech start-ups have raised over $800 million during the past
five years (2012 to 2017) to introduce novel solutions that will help the agricultural industry
produce more on less land. Out of that $800 million more than $500 million was raised by
AI-related agritech start-ups, with technologies ranging from analysing satellite images to
identifying healthy strains of plant microbiome, to bring AI solutions and robotics to
agriculture.
VC firms like Bessemer Venture Partners, Accel Partners, Khosla Ventures, Lux Capital, and
Data Collective have been investing on robotics, drone, and computer vision companies with
a focus on agricultural applications. Furthermore, big ag-bio corporations such as Monsanto
and Syngenta have invested in AI start-ups with applications in agriculture. Characteristic
examples of such companies include Abundant Robotics, DJI Innovations and Orbital
Insight, as well as start-ups like Blue River Technology (please see below for more
information).
The table below summarises the agritech start-ups with AI-enabled technologies that are
poised to transform agricultural practices. Although the table is not exhaustive, it provides
an overview of the most important start-ups active in this niche field.
As demonstrated by the table above, most of the agritech start-ups attracting funding
revolve around four key categories:
• In-field monitoring
• Agricultural robots
• Predictive analytics
Satellite image analysis utilises mainly machine learning and computer vision technology to
categorise and analyse millions of satellite images and geo-spatial data that can analyse the
impact of weather changes on agriculture and provide information on crop distribution
patterns worldwide.
In addition to the deals listed in the above table, Climate Corporation, a digital agriculture
company that leverages machine learning to predict the weather and other essential
elements for agribusiness to determine potential yield-limiting factors, was acquired for
$930 million by Monsanto in 2013. In a similar manner, Blue River Technology, a Monsanto
Growth Ventures Company, is a pioneer in designing and integrating computer vision and
machine learning that enables growers to reduce the use of herbicides by spraying only
where weeds are present. The technology can reduce herbicide usage up to 90% and
significantly decrease costs for farmers. The firm is now looking into expanding their product
portfolio. Their success has been recognised by Deere & Company who have recently
acquired the firm for $305 million.
Abundant Robotics is a Stanford Research Institute spin-out that develops robotic systems
for fruit harvesting (e.g. picking apples) and a good example of pioneering work in the field
of robotics. Their technology employs the latest form of computer vision. Successful
commercial deployment of their robots will pave the way for more robots in the field of
agriculture and will help automate some of the most time consuming and labour intensive
tasks in agriculture.
DJI Innovations, is another example of a firm whose technology will help farmers save time.
DJI’s drone series are able to collect data, and generate maps that identify signs of stress or
disease in crops, replacing the traditional, labour intensive method of investigating crops
manually. DJI has collected a total of $105 million in funding for its technology platform and
serves as a good indication of how important in-field monitoring capabilities are expected to
become in the near future.
Furthermore, technology firms in the field of predictive analytics have been attracting
increasing attention with ec2ec securing over $1 million of funding in 2017 and raised over
$12 million in funding (from AgFunder, Aravaipa Ventures, and Elixir Capital) in 2014-2015.
While the growing number of connected devices represents a big opportunity for the
increasing number of agri-tech players, it also adds more complexity for farmers. In addition,
the majority of farms lack the necessary information technology infrastructure, connectivity,
and data storage. Despite the increasing number of new players in this niche field, the on-
farm data infrastructure will need to be upgraded significantly and become more robust
before AI solutions can be successfully deployed in agriculture.
KEY PLAYERS
Developments in the overall AI technologies market is led by digital corporate giants such as
Google, IBM, Yahoo, Intel, Apple and Salesforce. Industry-specific companies like Ford,
Samsung, GE and Uber are also emerging as AI developers in their own sectors, with
transport and retail dominating in terms of technology uptake.50
The key players developing proprietary cognitive AI solutions for the life sciences, or
harnessing AI solutions for life science applications, were identified using information from
subscription databases, press articles, internet-based searching and academic literature. The
landscape is comprised predominantly of start-up companies developing AI technology for
healthcare, drug discovery and agriculture. In parallel, leading technology companies such as
IBM and Google are working on the development of AI technology broadly, but have a
sector focus on healthcare, drug discovery or agriculture in addition to the broader promise
of AI across all industries.
IBM is the pioneering AI technology platform for the whole AI sector, and is a healthcare
market leader with IBM Watson and their cognitive health business. The company has been
aggressively acquiring healthcare computing companies with a focused strategy to build up
their capabilities in AI, and have spent approximately $4 billion in the two years to June 2017
on acquisitions.49
Companies such as GE are also targeting a leading position in AI in healthcare. In 2017 the
Boston-based company’s healthcare business announced partnerships with three high-
profile medical care and research institutions to co-develop AI: UC San Francisco’s Centre
for Digital Health Innovation, Boston Children’s Hospital, and most recently Partners
HealthCare in the US.
50
The Race For AI: Google, Baidu, intel, Apple in a rush to grab artificial intelligence start-ups,
CB Insights (2017)
Medical device companies such as Medtronic, Philips and Siemens are players in the sector,
with a broad focus on robotic surgery, population health management, virtual nursing,
personalised medicine and imaging & diagnostics. Whilst Amazon has not made a direct
inroad to healthcare AI as yet, their virtual agent, Alexa, is being incorporated into
healthcare apps by external developers and doctors who are using the tool for
administrative work; as such Amazon may become a more significant market player in
future.49
The slower adopters have been the well-established, multinational big pharma companies,
which are starting to accept the potential of AI technology and establishing a number of
partnerships, joint ventures or research collaboration deals in the drug discovery and
healthcare space, such as the example of Johnson & Johnson discussed above.
The AI in agriculture is also quite fragmented. There is a wide range of different start-ups
involved in the development and deployment of new AI powered solutions. However, some
do stand out based on the amount of funding they have attracted, the nature of the
technology developed and the strength of ties with some of the ag-bio giants (e.g.
Monsanto, Syngenta, etc.). Examples of such companies include Abundant Robotics, DJI
Innovations, Climate Corporation, and Blue River Technology.
Start-ups such as Orbital Insights, Gro Intelligence, Descartes Labs, and Tellus Labs are
developing yield prediction algorithms based on a combination of satellite imagery analysis,
weather data, and historical yield data. Tellus Labs claims to be more accurate than USDA
reports with predictions being available one month prior to the first USDA report in July.
Planting, maintaining, and harvesting crops requires time, energy, labour and resources. In-
field monitoring relies on a combination of drones and in-field cameras with elevated
computer vision capabilities to monitor crops and field conditions in real time. For example,
Resson, a Monsanto Growth Ventures company, has developed image recognition
algorithms that can identify plant pests and diseases more accurately than humans. Resson
has a partnership with McCain Foods, to help McCain minimise losses in their potato
production supply chain. As far as software is concerned there are companies like Prospera
which employ deep learning-based computer vision to monitor crops in real time.
Companies active in the field of crop and soil health analysis use a range of AI technologies
to monitor and determine the effects of microbes and other pathogens on plant health. In
addition, they investigate mutations, genetic and metabolic pathways that may have a
harmful effect on the plant or that might be able to increase yields.
Indigo Agriculture is a firm that uses AI technology to analyse and harness the plant
microbiome, while Benson Hill Biosystems, which has raised over $34 million in funding,
uses CropOS, a cognitive engine that integrates crop data and analytics with biological
expertise to identify the most promising plant genetics. The proprietary CropOS platform
utilizes data from DNA and RNA sequencing, field trials, and imaging analytics to identify
gene expression patterns and relate them to a specific phenotype. With each new data set,
the CropOS platform re-calibrates and learns, improving its predictive capability.
them to significantly reduce the response time and application of the necessary
countermeasures. According to NatureSweet, application of their AI system results in yield
increases of 2-4%, with that number expected to climb in excess of 10% as the system gets
further optimised.
Agricultural robotics include a range of robots that can perform a wide variety of agricultural
tasks. For example, Abundant Robotics, a Stanford Research Institute spin-out, has
developed robotic systems for fruit harvesting. Abundant Robotics employs the latest form
of computer vision to recognise ripe apples and a vacuum system to collect them. In May
2017, it announced funding of $10 million to commercialise its apple-picking robot.
The key players are mapped according to sector and main technology areas in the Figure
below. Note this is not an exhaustive list but rather a collection of important companies
identified during this research.
For this white paper, we have provided more information on several prominent companies
in more detail below, along with summary tables of additional companies. The table at the
end of each section and in Appendix 1 describes additional companies and deals in the
space.
These companies’ activities have been described and, where possible, compared using the
following parameters, which provide an indication of their strengths and longer-term
strategies:
The scores based on the number of partnership deals, sub-sectors, acquisitions or spinouts
and disease areas where applicable, range from 0 to 10 for each of the factors. Any score
greater than 10 is noted only as 11. This information is displayed on radar charts for each
company in the sections below.
To allow venture financing to be represented on each chart, this has been scored by the
band of funding raised, as outlined in the Table below.
HEALTHCARE
Companies currently dominating the $1,731 billion global healthcare market include the big
pharma companies like Novartis, Pfizer, GSK, J&J, Abbott, Novo Nordisk as well as the
medical device and supporting companies such as Medtronic, Philips, GE Healthcare,
Fujitsu, Cermer Corp, Siemens and McKesson. The introduction of sophisticated digital and
AI technology over the past few years has resulted in a number of new entrants to
healthcare – largely from the digital and computer software industry. These recent entrants
include: Google, Intel, IBM Watson, Proscia, Philips, PathAI, ContextVision, OptraSCAN,
Discovery Health and Sig Tuple.11 According to the same research, academic institutions and
non-healthcare companies have so far been earlier and faster in their adoption of AI in
healthcare.
In terms of AI technology breakdown some of the key companies competing in each sector
within healthcare are described below. Notably, the majority of these companies are not
traditional healthcare or pharma companies but are gaining influence in the sector (adapted
from Frost & Sullivan). In addition, a number of academic institutions are leading in terms of
technology development.27
• The company first invested $20 million for 3.4% equity in early 2016.
• The deal terms set annual minimum Mazor X purchases over a 4.5 year period.
51
https://orthofeed.com/2017/08/30/medtronic-puts-another-40m-into-mazor-robotics/
Medtronic has 150 employees working on its robotic systems business across the US and
Europe. They are aiming to lower the costs associated with robotic surgery.
Mazor have a CE-approved surgical system called Mazor X Align – the Mazor X range has a
number of products under development called Mazor X Lateral and Mazor X SIJ. They have
another device called ArcAid, all of which are targeting orthopaedic surgery.
The company received its first seed round funding in 2004 from a consortium of investors
including Johnson & Johnson Innovation. They have since raised approx. $180 million in a
number of venture funding rounds from J&J and Medtronic as well as investors such as
Oracle Investment Management. Alongside its development partnership with Medtronic,
the company has a licensing agreement with the Cleveland Clinic, and an acquisition deal
with Baptist Medical Centre Jacksonville.
Mazor Robotics
Number of industry sub-
sectors
12
10
8
6
Number of acquisitions or Number of partnerships/
4
spin-outs collaborations
2
0
Verily, formerly the Google Life Sciences division, now Alphabet Inc., is working at the
intersection of technology, data science and healthcare. The company has a number of
projects and joint ventures developing tools to collect and organise health data, create
interventions and platforms that put insights derived from that health data to use for more
holistic care management.
The company are working with a broad set of companies and academic institutions: Alcon,
Biogen, Dexcom, Ethicon, GSK, Galvani, Nikon, Sanofi, Verb Surgical, 3M, Bringham and
Womens Hospital, NHS Hospitals, Duke University School of Medicine, Parkinson Net,
Radbound University and Stanford Medicine. In addition the company invested in
Freenome, an early-stage cancer detection company.
Example partnerships:
• Verb surgical – Johnson & Johnson, through its medical device company Ethicon,
and Verily, established a joint venture for surgical intervention incorporating
robotics, visualisation, advanced instrumentation, machine learning and
connectivity.
• NHS Early invervention program. The company is partnering with NHS Heywood,
Middleton and Rochdale Clinical Commissioning Group and Merck Sharp & Dohme
(MSD), on a NHS England test bed project aimed at identifying patients who are at
risk of chronic conditions. They are harnessing analytical tools to develop insights
from patient data.
• Smart Lens program in partnership with Alcon for monitoring glucose in contact
lenses and to accomotate vision correction in far sightedness.
The company are working across healthcare sub-sectors such as imaging & diagnostics,
personalised medicine, robotic-assisted surgery, patient monitoring. Some of the disease
areas they are working on include diabetes, eye-related diseases, retinal imaging,
parkinsons, multiple sclerosis and metabolic disease.
Verily
Number of industry sub-
sectors
12
10
8
6
Number of acquisitions or Number of partnerships/
4
spin-outs collaborations
2
0
The joint venture between Verily and Ethicon (Verb Surgical), founded in 2015, is focused on
robot-assisted surgery; developing an intelligent digital surgery platform that will
incorporate robotics, visualisation, advanced instrumentation, machine learning and
connectivity into a total solution for operating room professionals. The corporate owners are
thought to have invested approximately $250 million in the venture.
Verb Surgical’s approach involves harnessing AI for image-guided MRI and CT scans during
surgery. The surgical technology was developed by Ethicon and research centre, SRI
International. Verily are providing data analytics, machine learning and connectivity
capabilities as well as advanced software and operating systems. They are harnessing
machine learning algorithms like Google Brain, TensorFlow and DeepMind. In addition the
company expect the surgical instrument capabilities such as teleproctoring, monitoring, and
training to be enhanced with other Google technologies, like Google Hangouts, Google
Translate, and in-development augmented reality and virtual reality technologies.
There are more than 200 people working on the digital surgery platform, including around
100 people at Verb Surgical, 50 people from Johnson & Johnson, and 50 from Verily. The
company has corporate and clinician partnerships, with the aim of democratising surgery.
Limited information is available on these collaborations.
PHILIPS
Philips are developing and launching a number of AI-based connected health solutions to
deliver actionable insights to improve outcomes, increase access to quality care and reduce
costs. They are positioned well with market leadership in electronics as well as consumer
health and the medical sector expertise.52
Philips IntelliSite Pathology Solution is another automated digital pathology system that
includes a slide scanner, image management system and software tools. Philips acquired
PathXL in 2016 and has recently announced a partnership with PathAI, a diagnostics start-up
company (summarised below), to improve AI breast cancer diagnostics.
52
https://aibusiness.com/how-is-philips-improving-healthcare-through-ai/
Philips’s work using AI is tightly interwoven with their capabilities in healthcare software,
personalised medicine (genomics) and population health management. For example:
• Jovia Coach, a smartphone app that combines technology with human coaching for
people at risk of type 2 diabetes, the company have an advanced telehealth system,
eICU soloutions for critical care and hospital bed management. They also have a
suite of continuous care home monitoring solutions.
BABYLON HEALTH
A UK-based digital health services company has developed a solution for disease diagnostics
with an AI doctor chabot technology delivered to the patient via a smartphone app. The
company raised approximately $60 million in April 2017. Trials of the technology are
currently ongoing in London, where the Babylon technology is being tested as an alternative
to the non-emergency NHS 111 number using the GP-at-hand app. The app allows users to
seek immediate healthcare advice on symptoms, triaging and appointment booking. The app
will ask follow-up questions based on the information the patient provides, in order to
determine the illness and seriousness of the condition. The app will then advise on next
steps: medical assistance, appointment, pharmacy or self-management at home.
The company has venture backing from investors including Kinnevik and Google DeepMind.
53
https://www.nuance.com/about-us/newsroom/press-releases/philips-and-nuance-bring-
ai-into-radiology-reporting.html
Qure.ai Imaging & Diagnostics The India and California-based company has developed deep learning algorithms to detect and highlight
abnormalities in medical images to reduce the chances of a misdiagnosis. Focus on MRI scans, X-rays to identify
tumours in brain, lung and abdomen. The company is working in the field of radiology.
Butterfly Imaging & Diagnostics The company are focused on imaging, and have developed solutions for whole body imaging using deep
Network learning AI technologies. The company has created a portable medical imaging device integrated with a deep
learning assistant that helps to diagnose patients in remote areas where clinicians aren’t available or are less
likely to specialise.
Enlitic Imaging & Diagnostics The company is using deep learning in diagnostics. It has a partnership with Capitol Health Limited, an
Australia-based diagnostic imaging services company to utilise deep learning diagnostics in analysis of medical
CT images for lung cancer and bone fracture detection.
AiCure Patient monitoring The company is using AI solutions for patient stratification for clinical trials and patient behaviour to target
poor drug adherence, targeting the efficiency losses from lack of treatment compliance. The platform is a
visual recognition platform using computer vision and deep learning technology to confirm the patients taking
part in clinical trial are taking their medications. The company estimates that 20-30% of drugs fail because
patients aren’t following protocol. The company are backed by investors including New Leaf Venture Partners
and Pritzker Group Venture Capital.
CareStroke Patient monitoring Leverages Google’s TensorFlow and Hadoop to identify at risk patients by combining clinical, behavioural,
demographic and socioeconomic information.
Ada Personalised health, The London and Berlin based health technology start-up is a personal health companion and telemedicine or
Virtual Nursing virtual nursing app. The company is working on an AI powered doctor, empowering people to make decisions
about their health. Ada has been trained using real world cases and is powered by AI combined with an
extensive medical knowledge base covering many thousands of conditions, symptoms and findings. In each
assessment, Ada takes all patient information into consideration, including past medical history, symptoms,
and risk factors. Through machine learning and multiple closed feedback loops, Ada continues to grow more
intelligent. Its key competitor is Babylon.
SkinVision Consumer Health & The skin cancer app uses computer vision to analyse skin lesions, it has received funding from dermatology
Wellness company LEO Pharma
Nirami Imaging & Diagnostics Indian company is focused on breast cancer screening using a multi-patented solution, SMILE, which harnesses
high resolution thermal images and AI to provide reliable, early and accurate breast cancer screening. Early
results, from data of 300 patients collected in two hospitals and one diagnostic centre, demonstrate high
accuracy, which remains to be validated in large-scale pilot studies.
Proscia Imaging & Diagnostics Image guided pathology testing. The company have developed a pathology cloud platform that uses computer
vision to analyse biopsy slides and medical images with a primary focus on oncology.
Infervision Imaging & Diagnostics The Beijing based company uses algorithms and computer vision methods to support lung cancer diagnosis. It
is a second pair of eyes for the radiologist and can identify >20 different cardiothoracic lesions.
OncoraMedical Personalised The start-up is harnessing AI to bring predictive insights and risk analytics to radiation oncology.
Medicine
Zebra Medical Imaging & Diagnostics Zebra is focused on radiology imaging solutions. The platform is harnessing AI to diagnose medical conditions
Imaging and trends to identify high risk patients, facilitate disease prevention and optimise workflow.
iCarbonX Personalised The China based healthcare AI company developing a platform to facilitate precision medicine, nutrition,
Medicine preventative care and disease treatment. The core focus of the company is on solutions for personalised
medicine. The start-up raised a series A of $154m in 2016.
PathAI Imaging & Diagnostics The company is using machine learning and deep learning techniques in the pathology arena to drive faster,
more accurate diagnosis of diseases. The company has partnerships with Philips in the area of clinical precision;
drug development with Bristol-Myers Squibb and global health with the Bill & Melinda Gates Foundation.
Clearview Imaging & Diagnostics An AI software company developing tools to assist clinicians in disease diagnostics with a primary focus on
Diagnostics breast cancer, they are also examining additional applications. The company is working towards FDA approval,
the tool could drive down radiologist workloads freeing up time to focus on their patients whilst dealing with
more difficult cases.
CureMetrix Imaging & Diagnostics The California based start-up has developed an algorithm for image analysis, which is currently being tested to
identify lung cancer in x-rays and for breast cancer detection in mammograms.
Freenome Imaging & Diagnostics A genetics start-up based in Philadelphia, USA is focused on machine learning for analysing blood samples to
categorise cancer stages
DRUG DISCOVERY
There are a number of key companies developing AI platforms for application in drug
discovery. Most of these are start-up companies, however two leading the space include
IBM Watson and Google DeepMind Health. In addition, a number of pharmaceutical
companies are embarking on deals across the sector.
IBM
IBM Watson, part of IBM’s cognitive solutions business, is the most well-known machine
learning model for drug discovery and a pioneer in the field. IBM is estimated to have
approximately 45% of the market for AI-related healthcare and drug discovery.8 In the first
half of 2017, cognitive solutions generated $8.6 billion in revenue – nearly one-quarter of
IBM's total revenue. The company is one of the leading acquirers of healthcare computing
companies, having spent approximately $4 billion in the two years to June 2017 on such
deals to expand its AI capabilities.49
A key function of IBM Watson is to identify drug candidates by synthesising large amounts of
textual and laboratory data to quickly analyse the set and identify new hypotheses. The data
include laboratory data, clinical reports and scientific publications. The key benefit is to save
researchers time, increasing research efficiency to make evidence-based decisions. The tool
has extended beyond drug discovery to healthcare and medical diagnosis.
The company’s activities cover optimising performance and identifying solutions in life
sciences, oncology, value-based care, government and imaging. Watson for Oncology, which
gives treatment recommendations based on patients’ medical records announced in 2016
that 21 hospitals across China will start using the cognitive computing platform, previously
deployed in India and Thailand.
Watson also launched a project called WatsonPaths in collaboration with the Cleveland
Clinic Lerner College of Medicine of Case Western Reserve University in the US.
WatsonPaths consists of two cognitive computing technologies that can be used by the AI
algorithm, Watson, which are expected to help physicians make more informed and
accurate decisions faster and to cull new insights from electronic medical records (EMR).
IBM Watson maintains its dominance and has made a number of significant deals and
partnerships in the sector. It has acquired several companies in the past two years: Ann
Arbor, Truven Health Analytics ($2.6 billion); Merge Healthcare, a medical imaging company
($1 billion); Phytel, a population health company; and Explorys, a healthcare intelligence
company.35 Furthermore they have established a partnership with Pfizer to support the
company’s immunoncology pipeline, and additional partnerships with Novartis, Novo
Nordisk, Celgene, CVS Pharmacy and the FDA.46 In the arena of medical diagnosis the
company is partnering with Memorial Sloan Kettering Cancer Centre and the American
private healthcare company, Wellpont.54
54
http://www.wired.co.uk/article/ibm-watson-medical-doctor
The company does not specify revenues attributable to Watson Health, but they state that
their software is being used by approx. 12 of the largest life science companies, and its
oncology tools by more than 55 hospitals and healthcare organisations worldwide.
Google acquired DeepMind in 2014 (established AlphaGo software) for approximately £400
million. DeepMind had raised $50 million prior to the Google acquisition. The company
established Google DeepMind Health which subsequently began working with NHS hospitals
in the UK (2016) with the aim of developing solutions for identifying early signs of disease
ultimately resulting in blindness or cancer. The company is leveraging machine learning to
analyse eye scans which are typically difficult to analyse. It is also focused on developing new
clinical mobile, alerts, messaging and task management apps linked to electronic patient
records. It has developed a clinical alert app called Streams, for acute kidney injury (AKI).
Partnerships which have been announced with several NHS Trusts include: Imperial College
Healthcare NHS Trust, Royal Free Hospital London, University College London Hospital and
Moorfields Eye Hospital, Taunton, and Somerset NHS Foundation Trust. The UCL
partnership began in 2016 with the radiotherapy department – DeepMind will test the use
of the machine learning tool to help reduce the time it takes to plan radiotherapy treatment
for hard-to-treat cancers of the head and neck. The partnership and exchange of patient
data has been the subject of some controversy in the UK between 2016 and 2017, with a
review underway by the Information Commissioners Office, the data protection watchdog.55
In parallel the company is working with academics at the Cancer Research UK centre at
55
http://www.independent.co.uk/life-style/gadgets-and-tech/news/google-deepmind-nhs-
patients-data-deal-1-million-legal-inappropriate-dame-fiona-caldicott-a7738601.html
Imperial College London with a view to improving breast cancer detection using
mammogram images.
The company hired two academic teams of founders (seven people in total) behind Dark
Blue Labs and Vision Factory, two UK-based deep learning start-ups. It is also partnering
with academics at Oxford University. DeepMind has also invested £17.4 million in Babylon
Health, the digital health company partnering with the NHS to develop patient triaging and
virtual nursing app solutions.
Google DeepMind
Number of industry sub-
sectors
12
10
8
6
Number of acquisitions or Number of partnerships/
4
spin-outs collaborations
2
0
BENEVOLENT AI
In a similar approach to IBM, Benevolent AI, based in London, has developed machine
learning capabilities and algorithms to mine research literature, molecular data and
proprietary research databases. The company is focused on repurposing or resurrecting
existing assets in which significant investment has already been made. The tool improves the
selection of candidates and drug targets using their AI analytical capability. The company has
raised more than $140.6 million in funding since 2013 and has a valuation of approx. $1
billion (2017). Their pipeline includes more than 20 programmes in preclinical
development.56
The AI platform analyses molecular data, study findings (both positive and negative), and
unstructured data related to compound efficacy, but combines it with a host of commercially
relevant reimbursement and outcomes data that can inform strategic decision-making.
Initial testing resulted in generation of 36 new hypotheses and 24 validated targets in vitro.
By traditional biopharma R&D timelines, only 5 candidates could have been managed in the
same timeframe.
56
Insights in Healthcare Horizons, CB Insights (2017)
The company has entered into a number of agreements, in-licensing promising compounds
for development in house. Notably, a deal with Janssen has so far resulted in progression of
a candidate to phase II clinical trial. The model Benevolent has adopted, unlike many AI
companies, is not a service or platform drug discovery provider. The strategy is to build its
own pipeline, as such it has licensed a number of small molecule candidates along with
clinical and biological data to seek novel indications for them. The first candidate is expected
to move into phase IIb trials at the end of 2017. The disease areas of focus include
inflammation, neurodegeneration (Parkinson’s; Alzheimer’s) and orphan diseases such as
Amyotrophic Lateral Sclerosis (ALS) and rare cancers.
In the Janssen deal, Benevolent will pay royalties and certain milestone payments if the
company moves the candidate into Phase III. Benevolent also has a drug discovery
collaboration with MRC Technology to conduct complex chemistry studies on disease
targets selected by Benevolent.
Benevolent AI
Number of industry sub-
sectors
10
8
6
Number of acquisitions or 4 Number of partnerships/
spin-outs collaborations
2
0
EXSCIENTIA
An AI-based drug development company based in Scotland, spun out of the University of
Dundee, Exscientia is utilising AI to automate the drug discovery process by harnessing
existing experimental data and published information. The company received $17 million
investment from Evotec in September 2017. It follows a collaboration between the two
companies which began in early 2016, focused on immunocology candidates.57 The company
announced a strategic research collaboration with Sanofi in May 2017, with a license option
agreement focused on metabolic disease. In particular for disease indications such as
diabetes.58
Exscientia
Number of industry sub-
sectors
3
2.5
2
1.5
Number of acquisitions or Number of partnerships/
1
spin-outs collaborations
0.5
0
ATOMWISE
Atomwise is a San Francisco-based drug discovery AI company with a deep learning platform
for small molecule discovery, AtomNet. The company have launched 27 drug discovery
projects in partnership with pharma companies such as Merck and Abbvie. The company
also has a programme with university laboratories where up to 100 laboratories will receive
72 potential medicines generated by AtomNet for further development. In addition the
company has reported identification of two compounds which have strong potential in
treatment of Ebola viral infection.
The company has secured approximately $6 million in funding from investors such as Khosla
Ventures, Data Collective, Draper Fischer Jurvetson, AME cloud ventures and Y
Combinator.
57
http://www.globaluniversityventuring.com/article.php/6119/evotec-designs-17.7m-
exscientia-deal
58
https://www.exscientia.co.uk/news/2017/5/9/sanofi
AGRICULTURE
While AI is still in its infancy, many tech companies are gearing up for dramatic growth in the
implementation of AI in agriculture. The key players are summarised in the following mind
map.
The leading companies are a mixture of software, analytics and hardware companies.
According to Comet Labs, a VC fund that invests solely in AI and robotics, the main
components that power AI in agriculture are the following in order of total percentage
represented:59
• Data Analytics (35%) - Monitoring and processing of sensor data into actionable
recommendations.
• Machine Perception (24%) - Includes a range of sensors such as hyperspectral
imaging, LiDAR, and NDVI.
• Sensors (19%) - Includes temperature, humidity sensors, and other soil sensors.
• Robotics (14%) - Driverless tractors, drones, smart farm machinery, and associated
robots.
• Algorithms (5%) - Includes natural language processors and behaviour adaptive
based solutions.
• Admin Tools (3%) - Farm management software and cloud enabled systems that
report on the execution or results of an automatable task or production plan.
59
https://blog.cometlabs.io/meet-some-of-the-startups-transforming-agriculture-with-
robots-and-ai-4a482daf119c
In conjunction with the AI market, the big data analytics environment is projected to grow to
$43.3 billion by 2023,60 with big data storage and on-demand deployment making up the
largest segments. AI solutions are expected to grow off the back of this market.
HEALTHCARE
The key challenges underlying the need for AI solutions in the healthcare sector, which are
driving adoption include:
• the need for tools to aid clinician workflows with decision support systems,
Some specific needs across healthcare include: analysing unstructured data, data privacy,
the cost of prescription drugs and nursing shortages.
The principle driver of AI to tackle these market challenges and needs are the excellent
treatment outcomes emerging from various global studies demonstrating the positive
outcomes and cost reduction resulting from the use of AI as decision support tools – in
particular demonstrating a drastic reduction in diagnostic and treatment costs. Hospital-
based studies have shown a 30-50% increase in positive patient outcomes at roughly 50% of
the cost.8 This will likely further increase demand among hospital management and patients
alike.
A broader healthcare trend for personalised medicine and more individual treatment plans
which cater to patients’ specific genetics and needs is driving a more evidence-driven
decision-making trend by care providers.
The cost and efficiency savings emerging from adoption of these smarter AI systems have
begun to be demonstrated. Healthcare systems such as NHS England have developed plans
to invest in AI, encouraging its application in medicine and the health service. For the NHS a
key benefit is the task of analysing large amounts of patient symptom information and the
vision of making smarter diagnoses, even prior to symptoms being displayed.61 The
challenge around AI adoption for a healthcare system such as the NHS will be institutional
readiness and coordinated introduction. Commitment from management teams to
60
https://healthitanalytics.com/news/artificial-intelligence-in-healthcare-market-to-see-40-
cagr-surge
61
https://www.theguardian.com/society/2017/sep/12/patients-illnesses-could-soon-be-
diagnosed-by-ai-nhs-leaders-say
understanding and utilising AI solutions is however a promising first step in driving adoption
in national healthcare systems.62
The communication about the use of AI platforms in a clinical setting as decision support
tools, rather than decision-making tools, will help to drive uptake of AI in healthcare
systems. Furthermore, the use of big data in the healthcare setting and cognitive analytics is
expected to be used for re-designing reimbursement models in the pharmaceutical and
healthcare industries. There is a patient-centric trend across the industry and a shift towards
fee for value in the space which extends to the drug discovery market described below.
DRUG DISCOVERY
The key challenges underlying the need for AI solutions in drug discovery for the
pharmaceutical industry include:
The industry’s willingness to consider AI approaches reflects the industry reality that drug
discovery is laborious, time consuming and not always effective, with high attrition rates.
Estimates suggest that 10% of drugs entering phase I clinical trials will reach the patient.17
Half of these clinical trial failures are attributable to a lack of drug efficacy, suggesting that
the targets are not optimal candidates from pre-clinical work.
A key driving force for the industry interest in AI approaches is the growth of biomedical
data and, in parallel research areas, the need for fast, efficient means of analysis and
identifying patterns and candidates.
Machine vision, which has been developed in the automobile industry and applied to self-
driving cars, is also now used for deep learning algorithms which can be used to model
biological processes from assay and text data.57
AGRICULTURE
The growing demand for remote sensing (in-field sensor and drone) capabilities and
algorithms that can interpret environmental conditions and help farmers make more
informed decisions are key factors driving the AI market in agriculture. Remote in-field
sensing is expected to play a vital role in surveying the quality and yield producing, and to
save significant time for farmers. Satellite imaging, image processing, 3D mapping, and
spectroscopy will allow for a significant boost in in-field observations compared to
conventional methods. AI systems for livestock that provide information regarding health
and welfare of animals are already under investigation and are expected to drive wider
adoption.
62
https://www.theguardian.com/society/2017/sep/12/patients-illnesses-could-soon-be-
diagnosed-by-ai-nhs-leaders-say
Finally, automated irrigation systems, powered by AI, which enable farmers to reduce
production costs, and increase sustainability will create big growth opportunities for the AI
market in agriculture.
North America and Europe will witness greater demand for AI solutions in agriculture due to
their robust technology infrastructure. However, the market is expected to undergo its
highest growth rate in the Asia-Pacific region. This is due to vast opportunities in upgrading
the traditional and outdated agriculture industry in the region.
BARRIERS TO ENTRY
There a number of issues with AI as a novel tool for increasing the efficiency of the sectors
described. These are outlined in the Table below. A key overall issue will be the deployment
of such a disruptive technology into well-established infrastructures, such as healthcare
delivery organisations. Gaining acceptance and enhancing human worker-computer
interaction to integrate AI into these sectors will be crucial to its further penetration.
63
For example, Slantrange, a San Diego-based start-up, developing a machine vision system
to measure crop populations and detect weeds. When originally deployed in the field
(South Africa), the company’s plant counting algorithm did not perform as expected
mainly because the algorithm was trained with data from a different location (different
planting densities & soil composition). The updated the algorithm with the new data, this
version of their system was re-deployed only two days after the original test with
success. The company recently announced a partnership with Bayer Crop Science to aid
in plant breeding.
64
http://uk.businessinsider.com/internet-of-things-smart-agriculture-2016-10
RESEARCH LANDSCAPE
A number of academic laboratories are developing AI technology, for application to the life
sciences. Indeed, many of the patent filings in the neural networks and deep learning space,
across all industries, are filed by academic institutions: 40% of assignees filing in 2016 are
classified as either a university or research institute.65
The key research areas and academic sub-disciplines involved in the development of AI
solutions include the following:
While this is list is not exhaustive, it captures the majority of technology sub-disciplines of AI
in which research is currently taking place. Despite the wide range of published articles
regarding the commercial promise of AI and industrial adoption, academic research is rarely
analysed. Nevertheless, scrutiny of academic research is useful, in that it can serve as a good
indicator of what industry will do next, as well as offering a snapshot of where the market
stands now.
The past decade has been particularly interesting, with substantial progress in the field of AI,
algorithmic analysis and real-world applications. Current trends and market projections,
suggest that AI is expected to be one of the main drivers for the digital transformation of
industries worldwide.
However, it is also worth noting that some commentators have voiced concern about the
more subtle impacts of industrial migration, which leaves universities temporarily devoid of
top talent, and could ultimately sway the field towards commercial endeavours at the
expense of fundamental research. Indeed, most of the top tech firms in the AI field employ
many ex-university researchers, drawn to private firms’ superior computing resources and
salaries.66
65
http://www.clearviewip.com/ip-artificial-intelligence-market/
66
Giney (2016) AI talent grab sparks excitement and concern. Nature, 532, 422–423
To generate a list of published papers that focus on AI research, databases were searched
using the following broad technology search terms:
As with the patent search discussed later, keywords were chosen to represent the AI
technology areas currently dominating the research field. Additional relevant keywords such
as “robotics” and “big data” were considered sub-topics and hence not included. Common
acronyms such as “AI” could not be included due to the high number of spurious results
returned.
The search results yielded 621,998 publications across all subject areas. These results are
analysed and discussed briefly in the following sections.
PUBLICATIONS BY YEAR
Publications by year offer a snapshot of the activity trend in this particular research field
over a given time period. The search identified all the relevant publications for the last 27
years.
35000
30000
25000
20000
15000
10000
5000
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
The annual trend points to a consistent increase in the number of publications for the period
under investigation. AI-related publications started increasing significantly from 2001
onwards, reaching a historic peak in 2016 with 46,764 publications. Data for 2017 are not
yet complete, which accounts for the drop at the end of the trendline.
PUBLICATIONS BY COUNTRY
According to our searches, more than 70 countries are active in AI research. As shown in the
graph below, the most active countries in terms of frequency of publication in descending
order are the United States, China and the United Kingdom, followed by Germany, Japan,
India, France, Canada, Italy and Spain. The fact that the most developed countries are
leading the field and produce more publications is not surprising considering the number of
research institutes and the dollar amount of research funding in these countries. These
results align with the geographical analysis of the patent search and deal flow, which further
substantiates the conclusion that the majority of innovation in the field of AI comes from the
United States and China, followed by Europe.
Publications by Country
United States
China
United Kingdom
Germany
Japan
India
France
Canada
Italy
Spain
PUBLICATIONS BY AFFILIATION
Focusing on the most prolific publishing organisations in the field of AI research allows us to
determine the comparative level of activity in this space. The analysis is based on the
number of publications across different disciplines assigned to each institution. Plotting the
number of publications by affiliation demonstrates that, although collectively the United
States displays the highest number of publications, the Chinese Academy of Sciences has
the highest number or AI-related publications (7,152 publications). The list of the top 10
institutions is completed by the Centre National de la Recherche Scientifique (FR), Carnegie
Mellon University (US), Tsinghua University (CN), Nayang Technological University (SG),
Ministry of Education China (CN), Massachusetts Institute of Technology (US), Stanford
University (US), University of Toronto (CA), National University of Singapore (SG).
Tsinghua University
Stanford University
Unversity of Toronto
As expected, the US and Chinese institutions have the strongest representation, while
Singapore accounts for a significant amount of research with two institutions in the top 10.
Nevertheless, this evaluation should consider the quality of research output. A recent report
by Clarivate Analytics,67 analysing citations by country, argues that the volume of research
and quality of research don’t necessarily align. According to the report Asian countries such
as China, Japan and Korea, have a significantly lower research impact than the United States
and relatively lower impact than European countries. The immediate conclusion is that
although Asian countries commit significant resources towards AI research, their global
impact is, for the time being, more limited.
To identify the publications that relate to life sciences, healthcare and agriculture, the search
was limited by subject area to: Medicine, Biochemistry, Genetics and Molecular Biology,
Neuroscience, Agricultural and Biological Sciences, Chemistry, Chemical Engineering, Health
Professionals, Immunology and Microbiology, Pharmacology, Toxicology and Pharmaceutics,
and Veterinary. Approximately 36% of the initial 621,998 publications fall within this
narrower search. As shown in the chart below, the majority of the publications relate to
medical and healthcare fields such as Medicine, Neuroscience, Biochemistry, Genetics and
Molecular Biology. Agricultural and Biological Sciences account only for 7% of the AI
67
Artificial Intelligence – The innovators and disruptors for next generation digital
transformation, Clarivate Analytics (2017)
academic research in the life sciences, healthcare and agriculture space. Broadly speaking,
this is also reflected in the activity levels described in the market and deal flow sections of
this report.
Chemistry
5% Medicine
36%
Agricultural and
Biological Sciences
7%
Neuroscience
18%
Biochemistry, Genetics
and Molecular Biology
19%
An analysis of the most prevalent keywords as identified by the searches is indicative of the
type of research that is currently carried out. To ensure that the keywords refer to the latest
type of research, the original broad search was limited to the past decade and hence only
publications from 2007 onwards were included. The list of the most prevalent keywords
along with the number of publications associated with them is given in the following table.
Some of the key topics and methods in the field of AI were plotted against time in an
attempt to look at their evolution and generate a research timeline (see graph below). Data
for 2017 were not included given that they were incomplete at the time of publication and
could potentially display a false decreasing trend.
Research Timeline
24000
Machine Learning
16000
Image Recognition
Speech Recognition
12000
Neural Networks
Support Vector
Machine
4000 Cognitive Computing
Note: (a) Machine learning includes publications in the field of Deep Learning. (b) Image Recognition includes
publications associated with Computer Vision, Image Processing, Image analysis, and Image processing. (c) Speech
Recognition includes publications related to Natural Language Processing (NLP).
Although AI research has increased dramatically over the past decade, most of the sub-fields
have been evolving at a slower pace. It is clear from the above graph that Machine Learning
is at the forefront of AI research and is attracting significantly higher attention by the
academic community, and possibly industry, compared to the remaining fields described.
Research started picking up from 2004 onwards, with the fields of Image Recognition and
Neural Networks exhibiting strong growth and reaching a peak in 2008. However, these two
fields experienced a ‘winter’ of innovation for the following five years (2008 to 2013) with
publications decreasing by more than 50% for both fields. Since 2014, research in both fields
has experienced a renewed enthusiasm with publication numbers recovering.
With a closer look it is also noticeable that besides Machine Learning, Data Mining and
Support Vector Machine are also fast growing topics/methods. Publication numbers suggest
that almost half of the total research revolving around Data Mining and Support Vector
Machine has been produced in 2014, 2015, and 2016 (47% and 46% respectively). If we were
to include data for 2017 (although incomplete) the respective percentages would exceed
55% for both fields.
The progress of Data Mining related research is not surprising when taking into account the
general hype surrounding Big Data and the wealth of unstructured data becoming available
on a daily basis. The field of Support Vector Machine is likely propelled by its connection to
Machine Learning and the progress recorded in this field.
Governments and industry alike are partnering with academic institutions focused on AI to
extract the commercial and economic potential. Several initiatives are described throughout
the report, but some examples in the life sciences include:
and institutions. Among those involved are Takeda and technology corporates such
as Fujitsu and NEC. In parallel, Kyoto University Hospital and Riken, Japan’s
National Research and Development Institute, provide clinical data to support the
initiative.
• The Cancer Moonshoot Initiative in the US, is another example of industry and
academia collaborating to apply AI to accelerate drug discovery.
PATENT ANALYSIS
OVERVIEW OF GENERAL AI PATENTING
Several recent reports have shown that patenting in AI research is an extremely active
area.11,65,67 In December 2016, Google and Elon Musk opened their AI platforms to the
public,68 Uber launched Uber AI Lab69 and Apple announced that for the first time it will
publish their AI research.70
There is significant interest in the future applications for AI and there are a lot of interwoven
technologies advancing in parallel, such as robotics, virtual reality, autonomous vehicles,
blockchain, 3-D printing and the IoT.62 There is fierce competition for ownership and
leadership amongst the top companies which is helping to push AI innovation forward and
accelerate advancements in current and future applications.
Technology giants such as Google, IBM, Microsoft, Intel, Facebook, Amazon, Baidu,
Samsung and Apple have been patenting heavily, and, along with industrial multinationals
across industry sectors such as Boeing and GE, have been racing to acquire AI start-ups.71
The deep learning technology sub-sector is currently propelling AI patenting activity as well
as investment activity.72 Deep learning is a form of machine learning in which neural
networks are fed information that is used by a computer to make decisions, train itself and
adjust based on what it has learned within specific parameters.62
Despite the prominence of the largest global tech firms, the innovation landscape is
remarkably diverse. Much of the more recent research is coming from academic sources,
with 40% of patent assignees filing in 2016 being an academic/research institute. An even
larger number of patents are filed by smaller companies outside the top 50 most common
assignees.62
Unsurprisingly, computing, data processing, and sensor technologies comprise the bulk of
the patents filed over the last five years, with applications predominantly in transport (e.g.,
self-driving vehicles, traffic congestion, airport security) and telecommunications. Other
filing areas include energy, agriculture, gaming, medical technology, manufacturing and
nanotechnology.62
68
https://www.inc.com/kevin-j-ryan/elon-musk-google-open-source-artificial-intelligence-
platforms.html
69
https://www.uber.com/newsroom/ailabs/
70
https://www.theverge.com/2016/12/6/13858354/apple-publishing-ai-research-siri-self-
driving-cars
71
https://siliconangle.com/blog/2016/11/15/ge-adds-ai-and-industrial-iot-startups-to-its-
list-of-acquisitions-this-week/
72
https://venturebeat.com/2016/04/02/deep-learning-will-be-huge-and-heres-who-will-
dominate-it/
PATENT SEARCH
In order to understand the AI intellectual property landscape across the healthcare, drug
discovery and agriculture spaces specifically, an assessment of the registered industrial
patent rights was carried out using Derwent Innovation, a global comprehensive patent
database. A broad search was conducted using the following search string within the
Title/Abstract/Claims (CTB) of any patent:
These keywords were chosen to represent the AI technology areas currently dominating the
research field. Other relevant keywords such as “robotics”, “big data” or “speech
recognition” were considered sub-topics of the above fields and will be discussed in more
detail later. Common acronyms such as “AI” could not be included due to the high number
of spurious results returned. The patent search was limited to patent applications published
in the AI space over the last 10 years. To identify the most relevant patent set for healthcare,
drug discovery and agriculture/agritech, the search was limited by International Patent
Classification (IPC) categories: A01 (agriculture; forestry; animal husbandry; hunting;
trapping; fishing); A61 (medical or veterinary science; hygiene); A62 (life-saving; fire-
fighting); A99 (subject matter not otherwise provided for in human necessities) and G06
(computing; calculating; counting).
The search pulls data from all available patent authority collections within the database,
including the full patent text for: US Granted; Australian Innovation; Canadian Granted;
German Granted; US Applications; Australian Granted; Canadian Applications; German
Applications; European Granted; Australian Applications; French Granted; European
Applications; UK Granted; French Applications; WIPO Applications; UK Applications; German
Utility Models. In addition, the bibliographic data for: Japanese Applications; Korean
Granted/Examined; Korean Applications; Other Authorities. In addition, the Derwent
Innovation proprietary DWPI data fields were searched for these selected collections.
The resulting search identified 8316 patent records filed in the 10 years from November
2007 to November 2017. These cases make up 3343 INPADOC patent families with which we
have conducted the patent analysis below.
677
700
600
500
400
400
289 302
300 248
179
200 154
119
50
100
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
There was a steady increase in patent filings for AI applications in the key areas of interest
from 2008-2014, followed by a sharp increase over the last two years. This is unsurprising
given the rapid advancements in big data, neural networks, parallel processing and cloud
technology which has occurred over a similar time frame. AI technologies are just now
becoming mainstream, because the hardware and processing technology has caught up with
the vision. The critical mass of data needed to “teach” computers now exists and the storage
and processing power to execute deep learning are available, fast, and cost-effective.62
KEY ENTITIES
Focusing on the top organisations filing in the sector allows for identification of those
organisations carrying out R&D in the area and the comparative level of activity in the space.
The analysis is based on the number of patent publications assigned to them in the broad
dataset. The data shows a market dominated by large multinationals. Philips and Siemens
(including Siemens Healthcare and Siemens Medical Solutions) are by far the most prolific
patent filing organisations, followed by a number of large companies with a similar level of
patenting activity. There are also a number of U.S. and China-based academic institutions
featured, including the University of California, MIT, Tianjin University and Zhejiang
University.
80
60
40
20
Other notable players include Samsung, which has a number of patents based on the
methods/apparatus for medical measurements, data processing and surgical robotics.
Examples include EP3215021A1 (Medical image processing apparatus and method), which
describes medical image processing apparatus using machine learning to detect image
landmark positions, and US9687301B2 (Surgical robot system and control method thereof),
where machine learning of the plurality of motions of a robot system is used in the control
system.
IBM holds notable patents such as US8594398B2 (Systems and methods for cardiac view
recognition and disease recognition) which uses a neural network classification system for
recognising heart disease in a cardiac echo video, and US9002773B2 (Decision-support
application and system for problem solving using a question-answering system) which
describes generating natural language queries from electronic medical records and providing
corresponding decision support for medical professionals.
GE has patents in similar areas to those given above, such as US20170098047A1 (System and
method for clinical decision support) and US9277902B2 (Method and system for lesion
detection in ultrasound images).
The data also identified some of the key patenting research institutions. The table below
summarises each of these in order of patent publishing activity, and the location in which
that research institute or university is based. All of the top institutes are based in the USA or
China. The University of California is the most active organisation, with 38 patent families
for various AI-related methods and devices for a range of applications, such as:
• wearable sensors for a pregnant mother to extract biometric data about the fetus
and analyse the data using a machine learning algorithm (US20170086709A1 - Fetal
health monitor)
GEOGRAPHICAL ANALYSIS
The data identified through the broad patent search was analysed to identify the top
countries for patent publications in the field. This gives an indication of the territories in
which patent protection is sought, and is therefore an indication of those countries
considered to be most important for commercialisation. Organisations will choose to publish
the patent in those countries where the industry sector is likely to be most commercially
viable, to secure patent exclusivity rights in those markets. Protection for AI applications in
the key market sectors is sought predominantly in the US (38.4%), China (18.6%) and Europe
(18.8%), which aligns with the key territories for the AI market in general. Other individual
countries which are likely to be important markets include India (5.5%) and the Australasian
markets of Japan (3%), South Korea (3%), Hong Kong (1.1%) and Australia (1.5%).
AU
WO
CN
US EP
HK
IN
RU KR JP
This data was further analysed to identify the priority countries where the patents are
initially filed. This gives an indication of where most invention is taking place, as patents are
commonly filed in the home territory of the inventing company or organisation.
Unsurprisingly given the filing trends described previously, the US is by far the most
important territory for innovation, with 55.9% of priority filings, followed by China with
19.7%. As well as being important territories for protection, South Korea (4.7%) , Japan
(5.1%), India (2.1%) and Australia (1.8%) also feature as top countries for priority filing. The
UK (1.8%) and Germany (3.1%), are the most important European territories for innovation.
CN
DE
EP
GB
US
IN
JP
KR
TECHNOLOGY AREAS
The patent dataset was analysed further to identify the top IPC codes within the specified
IPC categories used to conduct the initial patent search. The international classification
system provides for a hierarchical system of language-independent symbols for the
classification of patents and utility models according to the different areas of technology to
which they pertain. Therefore, these give an indication of the most important specific
technology sub-areas for the AI patent landscape. Some of this can be gleaned from the top
assignees as described above, which operate in key sectors such as Electronics, Computing
and/or, Healthcare. However, the IPC code is the formal structure in which technologies
described within a patent are classified, and so provide additional information. Below is a
table displaying the top 10 IPC codes in order of commonality along with their respective
description.
5/0476 – Electroencephalography
The parallel Thomson Innovation DWPI classification of the main technology areas are given
in the figure and table below. The most common categories are in Computing and Control:
Digital Computers (27%), Instrumentation, Measuring and Testing: Electrical Medical
Equipment (25%) and general tools for diagnosis/surgery (22%). In this latter category,
patents pertain to methods for image comparison, evaluation of sensor/diagnostic test
performance, ranking methods, or adaptive interpretation of medical/clinical data, for
instance. The dominant focus for this patent data is therefore in computational methods for
analysis/monitoring/interpretation/decision-making in medical and diagnostic applications.
There is little patenting in agriculture or agritech by comparison.
Scientific
Instrumentation Digital Computers
Pharmaceuticals:
Natural products
and polymers
Diagnosis, surgery
Electrical Medical
Equipment
T01 2243 Computing and Control: Digital Computers (G06C-F) Electronic data
processors, interfaces and programme control. Mechanical digital
computers.
S05 2127 Instrumentation, Measuring and Testing: Electrical Medical
Equipment (A61, A61N) Electrotherapy. Electrosurgical apparatus.
Blood cell counters. Electrical diagnostic apparatus. Tomography.
Veterinary apparatus.
P31 1879 General: Health, Amusement; Diagnosis, surgery.
PATENT LANDSCAPING
The patent search was mapped using Derwent Innovation’s proprietary ThemeScape
mapping tool. ThemeScape uses term frequency and other algorithms to cluster documents
based on shared language – in this case the English Title, Abstract and Claims from the
patent filings together with the DWPI-enhanced Titles and Abstracts. It uses several
algorithms to perform terminology based clustering. The text from one record is compared
with the text from all other patent records within the search collection. The map then uses
vectors to give each patent record a proximity score to all of its peers. The outcome of this
analysis is a visualisation of the patent space with extra patent (dot) represented once in the
map. Patents in close proximity share more phraseology than those located apart. The
patents are grouped into map “contours” to show areas of high and low patenting activity
organised into common themes. The illustration shows these contour lines, with the
“mountain peaks” representing a concentration of patents. Each peak is labelled with the
key terminology concepts contained in the patents within the cluster.
Although the landscaping is not an entirely precise tool, it is possible to identify clusters of
technology areas on the map which can be useful for analysing trends within the dataset.
The resulting maps from these searches are shown in the following pages.
The patent landscapes shown here reinforce the key technology areas of focus identified
from initial patent searching above (i.e., computing, electronics, instrumentation and/or
imaging). Though there is a high degree of crossover between these areas, Landscape 1
shows the broad applications of these technologies, which are largely in image recognition
for diagnostics, sensors and biometric monitoring.
• US8935060B2 – Claas GmbH’s patent titled Driver assistance system for agricultural
working machine
• US20160378086A1 – Plymill Clayton & Norman Brett, Control System Used for
Precision Agriculture and Method of Use
• US20170038749A1 – Iteris Inc, Customized land surface modeling for irrigation
decision support in a crop and agronomic advisory service in precision agriculture
A sub-search of the patent landscape was performed to illustrate the use of other important
AI-related techniques of importance, beyond the core principles included in the original
search string (e.g., machine learning, neural networks etc). Patent families involving data
processing, cloud computing, speech recognition, predictive modelling and statistical
analysis are included in Landscape 3. As shown, patents relating to these tools are scattered
throughout the landscape, reflecting the high degree of crossover between research fields
and the broad applicability of such techniques to the wider AI field. Sub-searches were also
performed for query interpretation and digital personal assistant, but returned no results.
Landscape 1: The landscape aims to select the broad applications of AI tools in healthcare, drug discovery and agriculture, from the search of 3343
INPADOC patent families. Applications are largely in image recognition for diagnostics, sensors and biometric monitoring.
Landscape 2: The landscape maps specific technology areas identified previously in our market analysis for healthcare, drug discovery and agriculture.
Specific patent keyword sub-searches for robot*, drug*, (image* AND diagnos*), and (agricultur* OR agritech OR agri-tech) are shown.
Landscape 3: A sub-search of the patent landscape was performed to illustrate the use of other important AI-related techniques of importance, beyond the
core principles included in the original search string (e.g., machine learning, neural networks). Patent families involving data processing, cloud computing,
speech recognition, predictive modelling and statistical analysis are shown.
KEY PATENTS
A patent citation analysis identifies key patents and patent applications and their
corresponding assignees, within a patent dataset. Citations link documents together based
on the citing of one document in another. For patents this means the document has related
content. In patent literature citations will either mean that the applicant has disclosed the
former patent as prior art, or the examiner from the patent office identified the former
patent during the search.
A backward citation is the term used for a traditional citation, and refers to the document
cited in a more recent publication. A forward citation is commonly used in patent analytics
and refers to the citing documents. The number of forward citations refer to citations
received by a particular patent by subsequent patents. The frequency may be an indicator of
key inventions or patents with high value. Publications with higher numbers of recent
backward citations on the other hand are more likely to be key strategic or defensive
patents.73
There a number of patents in the dataset relating to image analysis, data analysis from
electrostimulative techniques or motion detection, with intended applications of
predicting/understanding physiological responses, diagnosing medical conditions or
informing surgical procedures.
Some patents are assigned to large organisations identified as key in the healthcare sector
throughout this report (Philips, Medtronic (including Given Imaging Ltd)), some to smaller
companies with no clear interest in AI for healthcare (Smart Monitor Corp, Aison Co. Ltd),
and one to American Vehicular Sciences, a subsidiary of Acacia Research – a well-known
non-practicing entity. There were no patents pertaining to drug discovery applications or
agriculture.
73
Abrams et al. (2013). Patent Value and Citations: Creative Destruction or Strategic
Disruption? National Bureau of Economic Research; NBER Working Paper No. 19647
Abstract - DWPI Novelty: The system has in vivo imaging device for capturing in vivo image by
illuminating light rays towards body lumen. A receiver arranged in specific distance from
imaging device receives in vivo image transmitted from imaging device. A processor analyzes
image data to perform processing based on automatic scene detection method. A magnetic
field generator has automatic detection magnets which are controlled manually, for controlling
movement of imaging device based on processed image data. A workstation has a monitor for
storing and displaying stream of images.
2 45 US20090062680A1 BRAIN TRAIN 27/08/2008 05/03/2009
Title: ARTIFACT DETECTION AND CORRECTION SYSTEM FOR ELECTROENCEPHALOGRAPH
NEUROFEEDBACK TRAINING METHODOLOGY
Abstract - DWPI Novelty: The method involves collecting each of multiple individual signals
from multiple specified electroencephalography frequency bandwidths. A signal as a data
sample is passed to an artifact detection system. A determination is made whether artifact is
present in the data sample. A known value that does not reflect the artifact is substituted for
the data containing the artifact if the presence of artifact is detected. The data sample is
forwarded to a signal corrector that calculates root mean square amplitude. A raw amplitude
graph and a corrected amplitude graph are displayed.
3 39 US20100240988A1 REAL TIME 19/03/2009 23/09/2010
COMPANIES
Title: Computer-aided system for 360 degree heads up display of safety/mission critical data
Abstract - DWPI Novelty: The method involves providing non-invasive patient data derived
from technology selected from MRI, X-ray, CAT scan, and sonogram. Commercial off-the-shelf
(COTS) lightweight projection glasses are provided. The patient data is transformed into
images. The images are transformed into three-dimensional orthogonal space on the COTS
lightweight projection glasses. A surgical probe is provided with imaging capabilities. The
surgical probe is inserted into a patient. The patient data is collected with the imaging
capabilities.
4 36 US20140276090A1 AMERICAN 12/05/2014 18/09/2014
VEHCULAR
SCIENCES LLC
Title: DRIVER HEALTH AND FATIGUE MONITORING SYSTEM AND METHOD USING OPTICS
Abstract - DWPI Novelty: The method involves obtaining images of an illuminated driver by
using an image obtaining device. The images are analyzed to derive measure of blood flow in a
blood vessel, a capillary and a vein in a face of an occupant. The blood flow is analyzed over
time to determine whether the driver loses an ability to continue to control a vehicle, where
the loss of ability to continue to control the vehicle arises from the driver becoming drowsy,
falling asleep or incapable of controlling the vehicle after the driver is initially awaken or
controls the vehicle.
5 34 US20080319281A1 KONINKLIJLE 20/06/2008 21/12/2008
PHILIPS
ELECTRONICS N.V.
Title: Device for Detecting and Warning of Medical Condition
Abstract - DWPI Novelty: An electroencephalograph (EEG) unit correlates the heart beat and
motion information with the brain activity to determine the presence of epileptic seizure. A
processor processes and compares the signals from the EEG unit to a criterion that
characterizes the epileptic seizures. An alarm unit generates an alarm upon detection of the
seizure. An input/output facility reprograms the device with criteria for detecting the seizures.
The facility also allows the insertion of a memory medium to provide new data or software.
6 34 US20110230790A1 Kozlov Valeriy, 27/03/2010 22/09/2011
Lviv, UA
Title: Method and system for sleep monitoring, regulation and planning
Abstract - DWPI Novelty: The method involves entering global individual factors and daily user
factors. A wake-up time interval with beginning time, end time and sleep start time is accepted
from user (106). The factors and user movement data are analyzed. The intersection time
between user rapid eye movement (REM) sleep phase interval and wake-up time interval is
determined. The wake-up time is set within intersection time when intersection time is exists.
The wake-up time is set at end time of wake-up time interval when intersection time is not
exists. The user stimulated signal is created at wake-up time..
7 32 US8046052B2 MEDTRONIC 24/03/2010 25/10/2011
NAVIGATION INC
The subjects of the patents in the dataset are based mostly on patient monitoring and
medical device navigation/positioning. Large key players are again represented, with
Medtronic, Abbott Laboratories and Philips (through subsidiary Volcano Corp) assigned
patents for cardiac therapy navigation, data management in analyte monitoring, and image
calibration, respectively. Several other specialised companies focusing on medical devices
(CR Bard), motion recognition (Medibiotics) and patient monitoring systems (Dexcom,
Alivecor, Masimo) also hold important patents. One filing from Elwha LLC is also featured,
titled Unmanned device interaction methods and systems. Elwha LLC is a holding company
of Intellectual Ventures, itself a patent holding company.
Abstract - DWPI Novelty: The position depicting method involves inserting a stylet (92),
which includes a permanent magnet, into a blood vessel. A detector is then positioned such
that its first detection zone includes a portion of the vessel. Measurements of the magnetic
field generated by the magnet are then obtained via the detector, then determining first and
second confidence levels regarding the first and second positions of the magnet. A
representative image of the magnet is then displayed if the second position is within the first
and second detection zones and the confidence level is above a threshold value.
2 868 US20140270445A1 VOLCANO CORP 12/03/2014 18/09/2014
Title: SYSTEM AND METHOD FOR OCT DEPTH CALIBRATION
Abstract - DWPI Novelty: The method involves obtaining an image that includes a target and
a reference item. A location of the reference item is detected within the image. A y-value of
the location is determined. The determined y-value is compared to a stored reference y-
value. A calibration value based on the comparison is calculated. A calibrated image is
provided by shifting pixels in a y-direction according to the calibration value. A reference
item comprises an image of a sheath of a catheter (826). The pixels are shifted by the
difference by removing a feature from the image.
3 621 US9795301B2 NATIONAL 25/05/2011 24/10/2017
INSTITUTES OF
HEALTH (NIH) U.S.
DEPT. OF HEALTH
AND HUMAN
SERVICES (DHHS)
U.S.
GOVERNMENT
Title: Apparatus, systems, methods and computer-accessible medium for spectral analysis of
optical coherence tomography images
Abstract - DWPI Novelty: An information generating apparatus (200) comprises at least one
first arrangement which is configured to receive at least one first radiation from the
structure and at least one second radiation from a reference, and interfere the first and
second radiations to generate at least one third radiation; and at least one second
arrangement which is configured to generate spectroscopic data as a function of the third
radiation, and reduce at least one scattering effect in the spectroscopic data to generate the
information.
4 601 US9067070B2 MEDIBOTICS 12/03/2013 30/06/2015
LLC; CONNOR
ROBERT A
Title: Dysgeusia-inducing neurostimulation for modifying consumption of a selected nutrient
type
Abstract - DWPI Novelty: The method involves detecting consumption of a selected nutrient
type by a person by analyzing a chemical composition of food, saliva and/or chyme in
person's oral cavity, esophagus, stomach and/or duodenum. Temporary dysgeusia is induced
in response to the consumption of the selected nutrient type, where the dysgeusia is induced
by the application of electromagnetic energy to an afferent member of person's peripheral
nervous system, where the afferent member conveys signals for a portion of the way from
person's taste receptors to person's brain, and the dysgeusia modifies the consumption.
5 528 US9798325B2 ELWHA LLC 31/08/2012 24/10/2017
Title: Systems and methods for replacing signal artifacts in a glucose sensor data stream
Abstract - DWPI Novelty: The method involves receiving data from a continuous analyte
sensor (10) i.e. continuous glucose sensor. An occurrence of a signal artifact event is
detected by determining amplitude of sensor data and determining amplitude of a signal
artifact or by detecting start of the signal artifact event when the amplitude of the signal
artifact meets a predetermined condition. The received data is processed according to
presence or absence of the signal artifact event. The received data is filtered to generate
filtered data.
However, some well-known cases of legal decisions in software patent cases deeming
software to be ineligible patent subject matter due to abstractness of the idea, such as the
US Supreme Court 2014 decision in Alice Corp v. CLS Bank, have subsequently hindered
patents for computer-related inventions, particularly software patents.75 But more recent US
74
https://sigtuple.com/blog/protecting-ai-inventions/
75
https://www.lexology.com/library/detail.aspx?g=300e6862-012d-49dd-bed4-
ba8ae4477397
decisions have clarified the stance on the issue, and cases like Enfish v. Microsoft have
categorically stated that software claims are patent eligible subject matter.
The question of patent eligibility is important for companies, organisations and researchers
innovating in the fields of big data analytics, cloud computing services, machine learning,
etc. and for which software needs to be patent-eligible subject matter. However, some
commentators have pointed out the drawbacks of issuing patents in the AI space. For
example, Google has a patent on a common machine learning technique called Dropout.
This means that Google could insist that no one else use this technique until 2032, but
patents on such fundamental machine learning techniques have the potential to fragment
development and hold up advances in AI.77 It is also been argued that some patents have
been issued for using machine learning techniques in obvious and expected ways.78
We are moving rapidly towards a future where artificial intelligence will play a hugely
significant part, and innovations in the field need to be adequately protected. Though it is
true that granting frivolous patents empowers patent trolls and costs companies millions to
fight subsequent lawsuits, at the same time, an anti-software patent approach is equally bad
in terms of not being able to protect true technological breakthroughs and inventions in
areas which are likely to shape the future of many technology areas.74
In addition to patent eligibility common to software products, there are some unique
features of AI systems which give rise to new IP challenges. One of these is the need to train
the system using large volumes of data. Training is often crucial, as it allows the system to
develop and refine its decision making abilities to the point where they start to become
comparable with human decision making, putting the “intelligence” into AI.79 How this need
to train the system impacts on the IP issues will depend on the parties involved in the
development, and the way an AI system is trained will influence who owns the IP in the
finished product.
This can become complicated where there are multiple parties involved in its development.
If one party supplies the initial code but a second trains it, there is the potential for conflict
as to who owns the IP rights in the resulting system. Unlike a traditional software
development situation where every line of code is attributable to a human author, using
machine learning will generate large sections of code automatically. The approach the
76
https://gestalt.law/artificial-intelligence-patents-for-healthcare/
77
http://www.i-programmer.info/news/105-artificial-intelligence/8765-google-files-ai-
patents.html
78
https://www.eff.org/deeplinks/2017/09/stupid-patent-month-will-patents-slow-artificial-
intelligence
79
http://digitalbusiness.law/2017/06/artificial-intelligence-and-ip-part-1-developing-ai-
systems/
parties take to IP ownership issues in their commercial agreements will need to adapt to
reflect this process.79
Another issue with IP in AI systems has the potential to be even more disruptive; creating
content using AI. AI systems are not considered legal persons and there is no single law
which sets out who will own the IP rights in any content they create. The position for the
near future will therefore depend on how our existing framework for ownership of each type
of IP right can be made to fit situations where an AI system is involved in creating the
relevant content.80 On a practical level, the best way to manage the potential uncertainties
regarding ownership of IP rights in content generated by an AI system will be to clearly set
out who is going to own the IP in commercial agreements and terms of use for the system.
Given the number of entities which could be involved in the design, training and use of an AI
system, these issues will need to be thought through right at the outset of an AI project and
applied at each contacting stage as the project develops.80
One further issue for securing patent protection for AI-based inventions is satisfying
disclosure requirements. An inventor must disclose to the public enough information about
the invention to enable one of ordinary skill in the art to practice what is claimed. Given the
nature of some AI inventions, meeting this requirement can be challenging. For example,
when seeking protection for rule-based AI systems, a research team may have developed
rule sets that are effective for a specific application. Patent claims directed to a broader
scope of application may not be enabled by the rules developed. Disclosing only those
specific rules may not satisfy the disclosure obligations. The performance of AI embodied in
artificial neural networks can depend on network topology, which can include the number
and types of layers, the number of neurons per layer, neuron properties, training algorithms
and training data sets. The scope of the claims will depend on what the limited set of
topologies disclosed in the patent teaches one skilled in the art to practice. There could be
millions of permutations of the network architecture or rules adaptable for various
applications. Disclosing only a few and trying to define a broad claim scope may introduce
risks.81
80
http://digitalbusiness.law/2017/06/artificial-intelligence-and-ip-part-2-ip-in-ai-generated-
content/
81
https://www.finnegan.com/en/insights/intellectual-property-protection-for-artificial-
intelligence.html
APPENDIX
DEALS