Recognition of AI’s transformational ability to build resilience to climate change and support emissions reduction has the potential to propel the energy sector toward new innovations, according to an intellectual property firm. Brands and clerks.
The conclusions of his last AI Report reveal that AI innovations related to green technologies are advancing rapidly, with patent filings up 35% in 2023 – despite a slowdown in overall AI filings. The European Patent Office (EPO) is demonstrating critical institutional support for this trend, granting green AI patents at higher rates than ever before, as innovators increasingly focus on the technologies that power the energy transition. From optimizing renewable energy networks to reducing emissions, AI is proving to be a key driver in the sector’s transition to carbon neutrality.
When it comes to AI patent leadership, the United States continues to dominate overall AI applications at the EPO. However, European companies dominate in the field of green AI, filing 50% more applications than their American counterparts. While U.S. companies are largely focused on technologies related to climate change adaptation and resilience, Europe has taken the lead on energy conservation, aligning with its strong regulatory and policy focus on energy efficiency.
Although green AI patents currently represent only 4% of all AI filings, their rapid growth over the past year speaks to their importance in the context of the global energy transition. This trend makes it clear to investors and policymakers that the intersection of AI and sustainability can lead the way to the future of energy, with advancements already reshaping the way energy is produced and consumed.
The report also reveals that patents in the energy sector increasingly serve a dual purpose. It is promising that in addition to their traditional role of protecting innovations against competitors, patents are also used to establish industry standards that enable the rapid deployment of emerging technologies.
Tomas Karger, partner at Marks & Clerk, comments on this trend:
“Patent and licensing initiatives have the potential to accelerate the commercialization of new technologies and, in doing so, promote faster deployment of green AI solutions. These strategies also promote sustained capital investment in green AI innovations. It is clear from this year’s report that AI is not only transforming technology, but also contributing to a cleaner, greener future for the energy sector. If we draw a parallel with the telecommunications sector, where the pooling of patents has historically enabled rapid deployment, we can be sure that the energy sector will be able to follow suit.
That said, green AI innovation in some of the key sectors of the energy transition – such as geothermal, wind and hydropower – demonstrates relatively low patent publication activity. Several factors could explain this trend, including high infrastructure costs associated with these sectors, physical challenges in implementing AI technologies in these areas, and stricter regulatory environments. On the other hand, the most published sectors are fuel cells, biofuels and solar.
Beyond putting pressure on the energy sector to adopt innovations that can accelerate the transition to net zero emissions, the new regulations will also play a role in maintaining the importance of deposits of patents on green AI. The EU AI law includes provisions that encourage the development and deployment of AI technologies that contribute to sustainability and climate goals. The correlation between the increase in green AI patent filings and the regulatory environment created by the EU AI law reflects the EU’s dual commitment to sustainability and technological innovation.
Mike Williams, Senior AI Associate at Marks & Clerk, examines the impact of the changing regulatory environment on green AI innovation:
“AI regulations are advancing rapidly in several major markets. As companies wait to learn the exact impact of these regulations, the importance of intellectual property protection in green innovation is already evident. It is encouraging to see the strong growth in patent applications for green AI innovations. This demonstrates that businesses are increasingly looking to apply advances in AI made over the past two decades to develop solutions to global environmental challenges. This is clearly still a nascent and developing area, but given the scale of the problem, the societal and financial rewards that these innovations could offer are unmatched. The US and UK patent offices provide favorable treatment for green innovations, which is expected to further boost growth in this area.»
This is the fourth annual Marks & Clerk AI Report, which uses EPO data to identify global trends in AI patent applications and provide analysis from the company’s team of world-renowned AI specialists.
