Intellectual Property in the AI-Driven Era: Copyright Challenges and Inclusive Innovation in AI-Generated Works

Abstract

In a world that is rapidly undergoing technological advancement, intellectual property (IP) becomes a determinant of innovation wherein there is fostering of inclusive growth amidst the challenges arising from digital transformation. The usage of Artificial Intelligence is an evolving tool to the creative sector, as new age innovation challenges the constructs of ownership unlike intellectual property before. While the usage of AI has increased the potential for innovation beyond productivity and accessibility, they also pose profound IP challenges such as the ambiguous nature of the author of AI-created work. AI tools such as DALL-E, Midjourney, and GPT-based invention drive art, music, literature, and software development independently, throwing into question a crucial IP paradigm which is human authorship. The paper deals with the legal challenges that may arise, followed by the consequences of AI interference on IP registration wherein implications for different IP rights come into play as the training of the AI system entails data mining and accessing other protected IP. This paper researches in depth the scope of IP registration of AI generated works by analysing various legal frameworks like Berne Convention, EU’s Copyright Law, US’s Copyright Act, India’s Copyright Act, 1957 and its various amendments. The paper explores the implication of copyright laws in AI generated works and its usage by analysing cases such as Bartz v. Anthropic, 3:24-cv-05417 (N.D. Cal.), Kadrey v. Meta Platforms, Inc., 3:23-cv-03417, (N.D. Cal.), Arijit Singh v. Codible Ventures LLP, 2024 SCC Online Bom 2445, Getty Images and others v. Stability AI [2025] EWHC 38 (Ch). This paper highlights the crucial role that global collaboration and awareness play in the creation of copyright laws that support creativity in the AI era.