UK ranks 8th in global AI innovation race, report reveals

Globally, patent filings in the AI industry have increased by nearly 2,000% in the past decade, with over 200,000 new patents filed in 2023. Growth is projected to continue to over 300k filings in 2026, indicating high growth and competitiveness in the sector. The UK is placed to capitalise on growth and become a leading force in AI innovation, if the initiative were taken.

China and the US continue to dominate the space, with over three-quarters of the global AI patent filings. According to the latest data, the UK has filed 1.39% of global AI patents, 34 times lower than the world leader China but close to neighbouring Germany (1.63%). This is, however, nearly double the filings of France (0.79%) showing the potential for the UK to build on strong foundations.

The data highlights the specific areas of AI innovation in which the UK has true global specialism in, with the top area being securing communication with filings driven by NChain. Image analysis and enhancement are also specialist areas for the UK, driven by filings by Sony Interactive Entertainment and Imagination technologies.

Data is published as the new Labour government targets growth through public and private investment in science and technology. The data calls for the UK to have its own intellectual property strategy to support growth in the sector, which will be crucial for the UK if they want to become a global leader.

The report, created by Patent Box tax relief specialists Source Advisors, analyses the volume of innovative output from the UK compared to other territories for AI patents.

Luke Hamm, Managing Director at Source Advisors, says: “Now the election is over and the new government gets down to business, the headline-grabbing commitment to economic growth now must take shape in actual policy. There are choices to be made on what we want to be famous for and how the legal, and regulatory framework complements this as well as how fiscal incentives will drive greater levels of investment.” 

Akshay Thaman, IP Consultant and Policy Lead, says: “This research shows that the UK sits at the lower end of the top 10 for patents filed in the AI industry. Ultimately, it highlights the level of work needed by the incoming government to position the UK to truly compete on the world stage. Now, funding routes such as the R&D tax relief regime, grant funding, and private investment are all crucial to driving growth. However, we ask the incoming government to carefully consider the importance of intellectual property awareness, protection and commercialisation as a key lever to driving growth. Other comparative nations are clearly ahead of the UK in doing this. Perhaps it’s time for the UK to have its own intellectual property strategy.”