1. Safeguard trade secrets: Implement robust measures to protect proprietary algorithms and sensitive data. 

2. Collaborative with clarity: Proactively define ownership, inventorship, enforcement responsibilities, and cost-sharing of jointly developed technologies to avoid disputes and maintain a competitive edge. 

3. Strengthen supply chain protections: Establish IP safeguards to address vulnerabilities across every step of the supply chain, from sourcing raw material to the final point of product delivery.

Algorithms are becoming an even more critical tool for innovation, which may give rise to occasional disputes over ownership. Concerns around IP theft (49%) and counterfeit components (35%) remain significant, but the ubiquity of AI has added new dimensions to the landscape. As AI becomes integral to vehicle autonomy, personalization, and safety, companies are evaluating how to protect innovations.

Other challenges, such as securing IoT technology patents (30%) and addressing ownership issues in joint R&D projects (20%), highlight the industry’s need for sophisticated, innovative, and well-considered IP strategies. The race to secure patents for navigation technologies (19%) adds another layer of complexity as automotive companies compete to protect breakthroughs that could define the future of mobility. Whether navigating patent thickets or safeguarding trade secrets, the industry must rethink traditional approaches to intellectual property in this rapidly evolving landscape. Legal clarity, an understanding of the current international IP landscape, and proactive measures will be essential to maintaining a competitive advantage.

The rapid integration of AI into the automotive industry has introduced significant intellectual property challenges. As AI systems create proprietary algorithms with minimal human involvement, ownership, and inventorship become increasingly complex. With 65% of survey respondents identifying disputes related to ownership of AI-developed algorithms as the top IP concern for 2025, this issue demands attention.

Current domestic and international patent laws, which conventionally recognize only natural persons as inventors, leave AI-generated innovations in a gray area. For automotive companies, this means revisiting IP strategies to ensure proprietary algorithms are protected—whether as trade secrets, through patents, or via contractual agreements with partners and developers. Collaboration across the supply chain is critical, as joint R&D projects can add new layers of complexity to ownership rights. Clear, modern, and carefully drafted licensing agreements and robust global trade secret protections will be essential to avoiding costly disputes and fostering innovation in this competitive environment.

The road ahead requires more than technical ingenuity—it demands strategic legal planning and a clear, long-term strategy that considers as many near- and long-term variables as possible. Automotive companies that proactively address these challenges will safeguard their innovations and strengthen their position in a rapidly evolving industry.