In the age of AI, brands are fighting fakes and outsmarting counterfeiters with invisible armor.
Last year, nearly 70 percent of consumers bought counterfeit products online at least once. And while that's disappointing, it's not shocking--the production and sale of fake products is a global, $2 trillion issue threatening brand integrity and consumer safety. Data also shows that the higher a consumer's awareness of the severity of counterfeit risks, the less likely they are to purchase a fake product.
So, how can innovative brands protect themselves in the age of AI? Here are three key strategies:
1. Invisible Encryption Technology
Product authenticity is a critical concern for brands. In a recent survey, 68 percent of brands say they have had their products counterfeited, and 72 percent reported the biggest impact was on their company's reputation. With counterfeit goods flooding markets and potentially eroding consumer trust, the need for foolproof authentication methods has never been more pressing. One powerful solution is invisible encryption.
Invisible encryption, pioneered by companies like Ennoventure, is a method of encoding information within a product or its packaging in a way that's imperceptible to the naked eye. It involves embedding unique, encrypted signatures directly into product packaging or the products themselves. What sets this apart is its seamless integration--there's no need for special inks, additional tags, or alterations to the product's design.
With technology like this, brands can implement invisible encryption without overhauling their existing production processes or investing in expensive new machinery. This not only makes adoption more accessible but also significantly reduces the barriers to implementing robust anti-counterfeiting measures. That's a big deal, especially considering that over a quarter of brands have admitted to having absolutely no documented strategy to combat IP infringement.
2. Proactively Protect Intellectual Property
The fundamental learning process of AI involves absorbing and synthesizing human-generated concepts available on the internet. The 2024 AI Index Report from Stanford University revealed that nearly two-thirds of AI models introduced in the previous year were open-source. Furthermore, expansive language models, such as ChatGPT, depend significantly on information gathered from web scraping to build their knowledge base.
In the AI age, protecting intellectual property (IP) has become more critical than ever. As AI systems learn from vast amounts of online data, there's an increased risk of unintended use or replication of innovative ideas.
Proactive patent filing is key. "A robust IP strategy is indispensable in today's AI-driven world. By securing patents early, companies can protect their innovations and maintain a competitive edge," says Keegan Caldwell, Global Managing Partner of Caldwell. He stresses the importance of identifying patentable innovations early in the development process and establishing a regular patent review schedule. This strategy not only safeguards innovations but can also boost a company's valuation and attract investors. If your IP isn't patented, you should avoid revealing aspects of your upcoming innovation online so your novel ideas don't run the risk of becoming part of AI training datasets.
3. Digitize and Secure Existing Documents
In the modern world, data drives business decisions. That means many companies are sitting on valuable information locked away in physical documents. Digitizing these documents not only makes the information more accessible but also helps protect them.
By digitizing documents, brands can better manage their IP, identify potential patentable innovations, and create a more secure, searchable collection of their intellectual assets.
The Future of Business Is IP
While I'm a big proponent of AI and leveraging it to optimize work processes, the most valuable aspect of AI is how it forces businesses to prioritize uniquely human abilities. AI cannot be creative. It mimics; it does not innovate. For companies to stay competitive, they have to prioritize creativity across all aspects of their brand.
Failing to do so results in duplicative and, frankly, boring brands that won't impress buyers. Brands that focus on protecting IP in creative ways like invisible encryption are going to see a rise in their stock in coming years, and the companies that partner with them will gain an edge.
As these technologies continue to evolve and integrate with other innovations, we can expect to see a future where product authenticity and IP protection are no longer concerns, but givens. By leveraging invisible encryption, proactive IP protection, and advanced document digitization, brands can stay ahead in the AI age, safeguarding their innovations and maintaining--or even bolstering--consumer trust.