For companies and inventors developing new technologies, artificial intelligence (AI) tools can feel indispensable. They help lean teams brainstorm more quickly, write code earlier in the development process, and communicate complex ideas with greater ease. AI can take meeting notes, offer feedback on concepts, generate code and diagrams, and even assist in preparing invention disclosures.
However, from an intellectual property (IP) perspective, there is a need for caution as careless use of these tools can quietly undermine a company’s most valuable asset: its inventions. Entering confidential information into an external AI system may constitute a “public disclosure”, especially prior to filing a patent application, and jeopardizes the ability to subsequently obtain patent protection. A related concern is that some AI tools may use submitted information for training, potentially exposing proprietary concepts to others working in similar technology areas.
This article explains how organizations can take advantage of AI tools productively while still protecting their patent rights, trade secrets, and confidential know-how.
DO’s: Smart AI Use While Protecting IP
1. Do Assume Free or Consumer AI Tools Are Not Confidential
Unless you have a written enterprise-level agreement, which is a legally binding contract between an AI software vendor and an organization, stating that your inputs and the tool’s outputs are both treated as confidential, assume the AI tool is effectively an external collaborator. Inputs may be logged, stored, or reviewed by external parties. As a practical rule: do not share anything you wouldn’t email to a stranger.
For the purpose of this article, “a vetted AI tool” refers to an AI provider with which you have a written enterprise-level agreement explicitly confirming that all input and output data is confidential. References below to “unvetted AI tools” mean tools without such an agreement.
2. Do Use AI for Speed, Not Secrets
As a rule of thumb, unvetted AI tools are generally safe and useful for researching public sources, summarizing public information, and providing structure and clarity for complex public documents, provided that any information you input to such tools is already intended to be public. Avoid sharing any confidential information as unvetted AI tools should not be used to process sensitive internal materials.
3. Do Abstract and Sanitize Prompts
For unvetted AI tools, prompts should be stripped of confidential or sensitive data. Replace real data with placeholders, remove technical differentiators, describe problems at a high level, and avoid using product names, customer names, or references to any confidential internal systems to abstract and sanitize prompts.
4. Do Establish a Formal AI and IP Usage Policy
A clear internal policy should be created and shared internally, that specifies which unvetted AI tools may be used for which types of tasks. For example, work involving proprietary or confidential information should be limited to vetted AI tools. The policy can also incorporate guidance from this article and include a library of approved prompts, along with any necessary training that may be required to ensure consistent adoption.
A helpful rule of thumb is: “If it could affect our patentability or involves confidential information, don’t put it into an unvetted AI tool without checking the policy.”
5. Do File Early for Patent Protection
For technology companies, early patent filing is essential. Public disclosures made after patent filing do not affect the assessment of novelty, inventiveness, or utility. And in a first-to-file patent system, which is the case in most major markets, early filing improves your ability to secure rights–especially in fast-moving fields where competitors may be developing similar technologies. 
DON’Ts: Common Pitfalls
1. Don’t Share Unfiled Inventions with AI Tools “Just to Get Feedback”
Public disclosure of an invention before filing a patent application will destroy novelty in most jurisdictions. Avoid entering unfiled inventions or confidential technical information–such as system architectures, algorithms, performance data, and product roadmaps into unvetted AI tools.
2. Don’t Assume a Paid Subscription Ensures Confidentiality
A paid plan for an AI tool does not guarantee confidentiality. Nor does a statement that your data is “private” mean it is contractually protected.
Only a written enterprise-level agreement can ensure that your inputs and outputs to an AI tool are confidential and excluded from model training. Always review such agreements carefully.
3. Don’t Let AI Invent
Even with a vetted AI tool, do not allow the system to generate or define the invention itself. Patent inventorship must be tied to a human contributor. Although AI can help brainstorm and explore options, over-reliance introduces ownership and inventorship risks. In Canada, the U.S., and many other jurisdictions, AI systems cannot be listed as inventors.
4. Don’t Use AI-Based Recording or Transcription Tools
AI note-taking tools are increasingly common, but they raise confidentiality concerns unless backed by an enterprise-level agreement. If someone activates such a tool during a meeting and confidentiality is uncertain, politely ask that it be turned off.
5. Don’t Paste Confidential Agreements or Customer Information into Unvetted AI Tools
Organizations often work under NDAs, pilot agreements, and collaboration arrangements. Entering any of the information subject to such agreements into an unvetted AI tool can inadvertently breach contractual confidentiality obligations.
A Simple AI–IP Checklist
Before using AI on invention-related work, ask:
Is this idea already protected (or about to be)?
Would disclosure reduce our competitive advantage?
Is this AI tool contractually safe (i.e., a vetted AI tool)?
Can I generalize or remove sensitive details?
Would I be comfortable explaining this prompt to an IP lawyer?
If the answer to any question is “no” or “not sure,” then pause.
Final Takeaways
AI can dramatically accelerate innovation, but it can also unintentionally expose the very ideas that give a company its competitive edge. The goal is not to avoid AI, but to use it deliberately with a clear understanding of its implications for confidentiality, patentability, and contractual obligations. Thoughtful practices, such as filing patent applications early, sanitizing prompts and refraining from sharing confidential or identifiable information, and relying only on vetted AI tools, allow teams to benefit from AI while preserving the long-term value of their intellectual property.
If you’d like to discuss how these AI-related issues may influence your IP strategy or innovation processes, contact the Marks & Clerk team. Our professionals can help you navigate the practical next steps for using AI.
AI can dramatically accelerate innovation, but it can also unintentionally expose the very ideas that give a company its competitive edge. The goal is not to avoid AI, but to use it deliberately with a clear understanding of its implications for confidentiality, patentability, and contractual obligations.
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