The role of innovation and IP in AI-based business models

We give insights into proprietary and open innovation approaches that are applied in artificial intelligence (AI)-based business models. Starting with the historical emergence of AI, we present the state of the art of innovation structures in AI applications and AI-based business models. Finally, we elaborate on the role of intellectual property (IP) with a special focus on patents, analyzing patenting data, and the top AI patentees: corporations, research organizations, and top patenting AI start-ups. We conclude with our own model of formal and informal protection strategies applied in AI-based business models and how to balance open and proprietary innovation with a focus on entrepreneurship and start-ups.