News and Analysis of Artificial Intelligence Technology Legal Issues

When It’s Your Data But Another’s Stack, Who Owns The Trained AI Model?

Cloud-based machine learning algorithms, made available as a service, have opened up the world of artificial intelligence to companies without the resources to organically develop their own AI models. Tech companies that provide these services promise to help companies extract insights from the company’s unique customer, employee, product, business process, and other data, and to use those insights to improve decisions, recommendations, and predictions without the company having an army of data scientists and full stack developers. Simply open an account, provide data to the service’s algorithms, train and test an algorithm, and then incorporate the final model into the…

Evaluating and Valuing an AI Business: Don’t Forget the IP

After record-breaking funding and deals involving artificial intelligence startups in 2017, it may be tempting to invest in the next AI business or business idea without a close look beyond a company’s data, products, user-base, and talent. Indeed, big tech companies seem willing to acquire, and investors seem happy to invest in, AI startups even before the founders have built anything. Defensible business valuations, however, involve many more factors, all of which need careful consideration during early planning of a new AI business or investing in one. One factor that should never be overlooked is a company’s actual or potential…