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Video Insights: What Boards of Directors Need to Know About Tariffs

Boards of directors globally are confronting unknown circumstances as a result of the current quickly shifting tariff and trade environment. Business risks and opportunities are magnified during such times, compelling boards to seek the right strategies in order to meet these challenges. In this video, Brian Gleason, John Peiserich, James E. Malackowski, and Mariano de Alba – experts in business turnaround, supply chain, intellectual property, and political risk – outline emerging considerations for boards of directors in light of changing tariff policies, including: • Tracking the financial impact of tariffs and effects on company supply chains • Understanding changes to regulatory requirements and whether internal policies need to be modified • Planning for short- and long-term effects on intellectual property • Adjusting communications between the board and senior management To view more of our Tariffs and Trade Series expert analysis and commentary, visit: Looking to know more or connect with John Peiserich and James E. Malackowski? Simply click on either expert's icon now to arrange an interview today. If you are looking to connect with Brian Gleason or Mariano de Alba - contact : Kristi L. Stathis, J.S. Held +1 786 833 4864 Kristi.Stathis@JSHeld.com

Video Insights: What Investors Need to Know About Shifting Tariffs

Unprecedented uncertainty brought on by quickly evolving tariff policies is creating challenges and additional considerations for investors and other capital providers. In this video, J.S. Held experts Brian Gleason, John Peiserich, James E. Malackowski, and Tom Burns – experts in turnaround, supply chain, intellectual property, and political risk – pose twelve questions to private equity sponsors and their portfolio companies to explore amid the continued tariff uncertainty. Restructuring and operations expert Brian Gleason has managed or participated in more than 300 turnaround engagements over the past 29 years and applies the principles utilized in J.S. Held's work advising companies in crisis. In the video, Brian addresses three essential questions that investors should consider with their portfolio companies during this period of unprecedented tariff-policy-induced uncertainty: 1) How have tariffs impacted business forecasting and investor confidence? 2) What are the key actions portfolio company management teams should take during tariff-induced uncertainty? 3) What leadership strategies are recommended for navigating the economic stress caused or complicated by tariffs? Business intelligence expert Tom Burns has extensive experience leading intelligence collection assignments for financial institutions, law firms, and blue-chip multinationals around the world. Tom explores the additional pre-acquisition diligence essential amid tariff uncertainty in the video. He addresses three questions, including: 4) How have tariffs changed the due diligence process in acquisitions? 5) What is transshipment, and why is it a concern for investors and their portfolio companies? 6) What steps should investors take to manage tariff-related risks in acquisitions? Capital projects, environmental risk, and compliance expert John Peiserich has over 30 years of experience advising heavy industry and law firms throughout the country with a focus on Oil & Gas, Energy, and Public Utilities. In the video, John reflects upon: 7) Why is it important for investors to assess the owner-operator's understanding of supply chain risks? 8) How have tariffs introduced new challenges for large-scale projects? 9) What is the potential impact of supply chain and tariff-related delays on investment outcomes? James E. Malackowski has a unique perspective on intellectual property litigation risk, strategic management, and monetization, which benefits from his prior work at a leading private equity firm. In the video, he advises investors and their portfolio companies to consider: 10) How do tariffs influence decisions around manufacturing relocation and intellectual property? 11) What IP-related risks should companies consider when relocating manufacturing operations? 12) What steps should investors take to ensure IP is properly managed in response to tariffs? The J.S. Held Tariffs and Trade Series is a collection of intelligence, insights, and action plans that inform strategic business decision-making and foster resilience in an increasingly volatile global market. To view more of our Tariffs and Trade Series expert analysis and commentary, visit: Looking to know more or connect with John Peiserich and James E. Malackowski? Simply click on either expert's icon now to arrange an interview today. If you are looking to connect with Brian Gleason or Tom Burns - contact : Kristi L. Stathis, J.S. Held +1 786 833 4864 Kristi.Stathis@JSHeld.com

Video Insights: How Senior Management Teams Can Respond to Tariffs

Companies around the world are facing increasing uncertainty brought on by the unpredictable and rapid shifts in tariff policies. As a result, corporate leaders are seeking ways to adapt and respond to the sudden and unprecedented changes in the international trade landscape. In this video, Brian Gleason, John Peiserich, James E. Malackowski, and Livia Paggi – experts in turnaround, supply chain, intellectual property, and political risk – discuss key strategies for senior management teams to address evolving tariff policies, including: • Updating business forecasts and understanding company liquidity • How companies can optimize their intellectual property (IP) value and mitigate risk • How to approach the unique risks associated with planning and permitting for capital projects • How to manage geopolitical volatility from shifting tariffs in the dealmaking process To view more of our Tariffs and Trade Series expert analysis and commentary, visit: Looking to know more or connect with John Peiserich, Livia Paggi and James E. Malackowski? Simply click on either expert's icon now to arrange an interview today. If you are looking to connect with Brian Gleason - contact : Kristi L. Stathis, J.S. Held +1 786 833 4864 Kristi.Stathis@JSHeld.com

Decoding the Future of AI: From Disruption to Democratisation and Beyond

The global AI landscape has become a melting pot for innovation, with diverse thinking pushing the boundaries of what is possible. Its application extends beyond just technology, reshaping traditional business models and redefining how enterprises, governments, and societies operate. Advancements in model architectures, training techniques and the proliferation of open-source tools are lowering barriers to entry, enabling organisations of all sizes to develop competitive AI solutions with significantly fewer resources. As a result, the long-standing notion that AI leadership is reserved for entities with vast computational and financial resources is being challenged. This shift is also redrawing the global AI power balance, with a decentralised approach to AI where competition and collaboration coexist across different regions. As AI development becomes more distributed, investment strategies, enterprise innovation and global technological leadership are being reshaped. However, established AI powerhouses still wield significant leverage, driving an intense competitive cycle of rapid innovation. Amid this acceleration, it is critical to distinguish true technological breakthroughs from over-hyped narratives, adopting a measured, data-driven approach that balances innovation with demonstrable business value and robust ethical AI guardrails. Implications of the Evolving AI Landscape The democratisation of AI advancements, intensifying competitive pressures, the critical need for efficiency and sustainability, evolving geopolitical dynamics and the global race for skilled talent are all fuelling the development of AI worldwide. These dynamics are paving the way for a global balance of technological leadership. Democratisation of AI Potential The ability to develop competitive AI models at lower costs is not only broadening participation but also reshaping how AI is created, deployed and controlled. Open-source AI fosters innovation by enabling startups, researchers, and enterprises to collaborate and iterate rapidly, leading to diverse applications across industries. For example, xAI has made a significant move in the tech world by open sourcing its Grok AI chatbot model, potentially accelerating the democratisation of AI and fostering innovation. However, greater accessibility can also introduce challenges, including risks of misuse, uneven governance, and concerns over intellectual property. Additionally, as companies strategically leverage open-source AI to influence market dynamics, questions arise about the evolving balance between open innovation and proprietary control. Increased Competitive Pressure The AI industry is fuelled by a relentless drive to stay ahead of the competition, a pressure felt equally by Big Tech and startups. This is accelerating the release of new AI services, as companies strive to meet growing consumer demand for intelligent solutions. The risk of market disruption is significant; those who lag, face being eclipsed by more agile players. To survive and thrive, differentiation is paramount. Companies are laser-focused on developing unique AI capabilities and applications, creating a marketplace where constant adaptation and strategic innovation are crucial for success. Resource Optimisation and Sustainability The trend toward accessible AI necessitates resource optimisation, which means developing models with significantly less computational power, energy consumption and training data. This is not just about cost; it is crucial for sustainability. Training large AI models is energy-intensive; for example, training GPT-3, a 175-billion-parameter model, is believed to have consumed 1,287 MWh of electricity, equivalent to an average American household’s use over 120 years1. This drives innovation in model compression, transfer learning, and specialised hardware, like NVIDIA’s TensorRT. Small language models (SLMs) are a key development, offering comparable performance to larger models with drastically reduced resource needs. This makes them ideal for edge devices and resource-constrained environments, furthering both accessibility and sustainability across the AI lifecycle. Multifaceted Global AI Landscape The global AI landscape is increasingly defined by regional strengths and priorities. The US, with its strength in cloud infrastructure and software ecosystem, leads in “short-chain innovation”, rapidly translating AI research into commercial products. Meanwhile, China excels in “long-chain innovation”, deeply integrating AI into its extended manufacturing and industrial processes. Europe prioritises ethical, open and collaborative AI, while the APAC counterparts showcase a diversity of approaches. Underlying these regional variations is a shared trajectory for the evolution of AI, increasingly guided by principles of responsible AI: encompassing ethics, sustainability and open innovation, although the specific implementations and stages of advancement differ across regions. The Critical Talent Factor The evolving AI landscape necessitates a skilled workforce. Demand for professionals with expertise in AI and machine learning, data analysis, and related fields is rapidly increasing. This creates a talent gap that businesses must address through upskilling and reskilling initiatives. For example, Microsoft has launched an AI Skills Initiative, including free coursework and a grant program, to help individuals and organisations globally develop generative AI skills. What does this mean for today’s enterprise? New Business Horizons AI is no longer just an efficiency tool; it is a catalyst for entirely new business models. Enterprises that rethink their value propositions through AI-driven specialisation will unlock niche opportunities and reshape industries. In financial services, for example, AI is fundamentally transforming operations, risk management, customer interactions, and product development, leading to new levels of efficiency, personalisation and innovation. Navigating AI Integration and Adoption Integrating AI is not just about deployment; it is about ensuring enterprises are structurally prepared. Legacy IT architectures, fragmented data ecosystems and rigid workflows can hinder the full potential of AI. Organisations must invest in cloud scalability, intelligent automation and agile operating models to make AI a seamless extension of their business. Equally critical is ensuring workforce readiness, which involves strategically embedding AI literacy across all organisational functions and proactively reskilling talent to collaborate effectively with intelligent systems. Embracing Responsible AI Ethical considerations, data security and privacy are no longer afterthoughts but are becoming key differentiators. Organisations that embed responsible AI principles at the core of their strategy, rather than treating them as compliance check boxes, will build stronger customer trust and long-term resilience. This requires proactive bias mitigation, explainable AI frameworks, robust data governance and continuous monitoring for potential risks. Call to Action: Embracing a Balanced Approach The AI revolution is underway. It demands a balanced and proactive response. Enterprises must invest in their talent and reskilling initiatives to bridge the AI skills gap, modernise their infrastructure to support AI integration and scalability and embed responsible AI principles at the core of their strategy, ensuring fairness, transparency and accountability. Simultaneously, researchers must continue to push the boundaries of AI’s potential while prioritising energy efficiency and minimising environmental impact; policymakers must create frameworks that foster responsible innovation and sustainable growth. This necessitates combining innovative research with practical enterprise applications and a steadfast commitment to ethical and sustainable AI principles. The rapid evolution of AI presents both an imperative and an opportunity. The next chapter of AI will be defined by those who harness its potential responsibly while balancing technological progress with real-world impact. Resources Sudhir Pai: Executive Vice President and Chief Technology & Innovation Officer, Global Financial Services, Capgemini Professor Aleks Subic: Vice-Chancellor and Chief Executive, Aston University, Birmingham, UK Alexeis Garcia Perez: Professor of Digital Business & Society, Aston University, Birmingham, UK Gareth Wilson: Executive Vice President | Global Banking Industry Lead, Capgemini 1 https://www.datacenterdynamics.com/en/news/researchers-claim-they-can-cut-ai-training-energy-demands-by-75/?itm_source=Bibblio&itm_campaign=Bibblio-related&itm_medium=Bibblio-article-related

3D-printed lung model helps researchers study aerosol deposition in the lungs

Treating respiratory diseases is challenging. Inhalable medicines depend on delivering particles to the right lung areas, which is complicated by factors like the drug, delivery method and patient variability, or even exposure to smoke or asbestos particles. University of Delaware researchers have developed an adaptable 3D lung model to address this issue by replicating realistic breathing maneuvers and offering personalized evaluation of aerosol therapeutics. “If it's something environmental and toxic that we're worried about, knowing how far and how deep in the lung it goes is important,” said Catherine Fromen, University of Delaware Centennial Associate Professor for Excellence in Research and Education in the Department of Chemical and Biomolecular Engineering. “If it's designing a better pharmaceutical drug for asthma or a respiratory disease, knowing exactly where the inhaled aerosol lands and how deep the medicine can penetrate will predict how well that works.”that can replicate realistic breathing maneuvers and offer personalized evaluation of aerosol therapeutics under various breathing conditions. Fromen and two UD alumni have submitted a patent application on the 3D lung model invention through UD’s Office of Economic Innovation and Partnerships (OEIP), the unit responsible for managing intellectual property at UD. In a paper published in the journal Device, Fromen and her team demonstrate how their new 3D lung model can advance understanding of how inhalable medications behave in the upper airways and deeper areas of the lung. This can provide a broader picture on how to predict the effectiveness of inhalable medications in models and computer simulations for different people or age groups. The researchers detail in the paper how they built the 3D structure and what they’ve learned so far. Valuable research tool The purpose of the lung is gas exchange. In practice, the lung is often approximated as the size of a tennis court that is exchanging oxygen and carbon dioxide with the bloodstream in our bodies. This is a huge surface area, and that function is critical — if your lungs go down, you're in trouble. Fromen described this branching lung architecture like a tree that starts with a trunk and branches out into smaller and smaller limbs, ranging in size from a few centimeters in the trachea to about 100 microns (roughly the combined width of two hairs on your head) in the lung’s farthest regions. These branches create a complex network that filters aerosols as they travel through the lung. Just as tree branches end in leaves, the lung’s branches culminate in delicate, leaf-like structures called alveoli, where gases are exchanged. “Those alveoli in the deeper airways make the surface area that provides this necessary gas exchange, so you don't want environmental things getting in there where they can damage these sensitive, finer structures,” said Fromen, who has a joint appointment in biomedical engineering. Mimicking the complex structure and function of the lung in a lab setting is inherently challenging. The UD-developed 3D lung model is unique in several ways. First, the model breathes in the same cyclic motion as an actual lung. That’s key, Fromen said. The model also contains lattice structures to represent the entire volume and surface area of a lung. These lattices, made possible through 3D printing, are a critical innovation, enabling precise design to mimic the lung's filtering processes without needing to recreate its full biological complexity. “There's nothing currently out there that has both of these features,” she explained. “This means that we can look at the entire dosage of an inhaled medicine. We can look at exposure over time, and we can capture what happens when you inhale the medication and where the medicine deposits, as well as what gets exhaled as you breathe.” The testing process Testing how far an aerosol or environmental particle travels inside the 3D lung model is a multi-step process. The exposure of the model to the aerosol only takes about five minutes, but the analysis is time-consuming. The researchers add fluorescent molecules to the solution being tested to track where the particles deposit inside the model’s 150 different parts. “We wash each part and rinse away everything that deposits. The fluorescence is just a molecule in the solution. When it deposits, we know the concentration of that, so, when we rinse it out, we can measure how much fluorescence was recovered,” Fromen said. This data allows them to create a heat map of where the aerosols deposit throughout the lung model’s airways, which then can be validated against benchmarked clinical data for where such aerosols would be expected to go in a human under similar conditions. The team’s current model matches a healthy person under sitting/breathing conditions for a single aerosol size, but Fromen’s team is working to ensure the model is versatile across a much broader range of conditions. “An asthma attack, exercise, cystic fibrosis, chronic obstructive pulmonary disorder (COPD) — all those things are going to really affect where aerosols deposit. We want to make sure our model can capture those differences,” Fromen said. The ability to examine disease features like airway narrowing or mucus buildup could lead to more personalized care, such as tailored medication doses or redesigned inhalers. Currently, inhaled medicines follow a one-size-fits-all approach, but the UD-developed model offers a tool to address these issues and understand why many inhaled medicines fail clinical trials.

AI Everywhere: Where Artificial Intelligence and Health Care Intersect

Imagine a world where AI doesn’t just support health care providers, but anticipates their next move — detecting diseases faster than human eyes, analyzing patterns and patient data that humans might overlook and revolutionizing health care decision making at every level. Driven by data, AI can identify which patients are most likely to have repeated emergency department visits or thrive from personalized medicine. With the power of robotics enhanced by AI, people with medical needs can gain more independence, managing daily tasks such as taking medication, monitoring their health and receiving personalized care, all from the comfort of their own homes. And this is just the beginning. “AI is transforming – and is going to continue transforming – every industry, especially health care,” said Bharat Rao, a notable figure in the fields of health care, technology and AI. Rao himself has made significant contributions to artificial intelligence, machine learning and data analytics, particularly in health care innovation. His current start-up, CareNostics, uses AI technology to identify patients at increased risk for chronic disease. “We take this for granted,” he said, “but it’s like what I used to see on Star Trek as a kid. The opportunities are limitless.” Rao was a keynote speaker at ChristianaCare’s inaugural Innovation Summit, a two-day conference at ChristianaCare’s Newark campus in Delaware, in fall 2024. During panel discussions and keynotes, more than 200 attendees heard about current and future health tech from national innovators and thought leaders, as well as technical advice for inventors who want to patent ideas and protect intellectual property in a world where “AI Is Everywhere,” the conference’s theme. Speakers emphasized that it’s not just technologists, but also researchers, clinicians and other health care professionals who play an essential role in implementing AI-based health care solutions. “There’s no AI without HI, which is human intelligence,” said Catherine Burch, MS, CXA, CUA, vice president of innovation at ChristianaCare. “You want to help shape the future, not wait for it to shape you.” How AI helps improve patient care “AI is incredibly good at reducing noise in images,” said speaker David Lloyd, a technical leader at Amazon, who discussed the use of AI in radiology. “It can detect anomalies, and it can automate radiologist reports, which saves time for radiologists.” Data informatics is another example of the power of AI to help health professionals determine which patients are at an increased risk for falls, malnutrition or recurrent asthma attacks, enabling them to optimize patient health and prevent hospitalizations. “Some patients with asthma go to the ER repeatedly because their treatment plan isn’t working,” said speaker Vikram Anand, head of data at CareNostics. When patients have uncontrolled asthma, data-rich platforms like CareNostics can provide treating physicians with guidelines and other support to improve patient care, which may lead to evidence-based medication changes or other therapies, he said. Using robots as part of the health care team in patient homes may sound like science fiction, but speakers discussed the current evolution of consumer robotics, like Amazon’s Astro. Astro follows patients around their home, interacts with them and supports their care. When ChristianaCare tested Astro’s impact on HomeHealth patients, they found that it reduced feelings of isolation by 60%. “Astro is like Alexa on wheels,” said speaker Pam Szczerba, PT, MPT, CPHQ, director of ChristianaCare’s HomeHealth quality, education and risk management, who studied patients’ experiences with Astro. “People like interacting with Alexa, but they can only interact in the room they’re in. Astro’s mobility lets it go to the patient.” Based on early successes, health professionals are assessing robots as an extension of clinicians in the home. Early results show that patients with robots show improved activation with their care plans. This may lead to more widespread distribution of household robots to newly diagnosed patients to help prevent disease complications, avoidable emergency department visits and re-hospitalizations. How AI helps ease provider burden Speakers also discussed the potential of AI to improve health care delivery and patient outcomes by handling more administrative work for health professionals. “We can reduce some of the redundancy of work to free up time for people to be creative,” said speaker Terrance Bowman, managing director at Code Differently, a company that educates and prepares people to work in technology-driven workplaces. “AI should be taking the ‘administrivia’ – administrative trivial tasks – out of your life,” said speaker Nate Gach, director of innovation at Independence Blue Cross. “When you want folks to do the creative part of the job that takes brain power, have ChatGPT respond to easy emails.” Other examples shared included the power of AI to record meetings, create summaries and send participants automated meeting minutes. Benefits can be seen across industries. Specific to health care, eliminating the need for note-taking during visits enables more personalized and attentive provider-patient interaction. With the evolution of ambient speech apps, clinicians are no longer just dictating notes into the electronic health record. Now AI is listening to the conversation and creating the notes and associated recommendations. “The physician is no longer spending ‘pajama time’ doing catch-up work, at home late into the evening,” said speaker Tyler Flatt, a director and leading expert in AI and digital transformation at Microsoft. “Especially as we’re dealing with burnout, it’s better for patient and physician satisfaction.” AI may also help caregivers uncover details that they hadn’t noticed, helping them diagnosis patients with subtle symptoms. “We feed a large quantity of data and have it suggest commonalities about patients,” said speaker Matthew Mauriello, assistant professor of computer and information sciences at the University of Delaware. “Some things are very insightful, but humans miss them.” AI has also been used for patient engagement, including chatbots that can assist with tasks like scheduling clinical appointments or acknowledging patient questions. “One of the things AI is great at is natural language understanding,” said David Lloyd. “You can alleviate a lot of the burden if you have something that can talk to your patients, especially if it’s an administrative task.” Creating new health innovations “The key is to think of something you’ve done that’s original and non-obvious,” said Rao, who holds more than 60 patents in AI. “The process of writing about it will help you flesh it out.” Turning breakthrough ideas into game changers is just the start — protecting these innovations is what ensures they shape the future, rather than fade into the past. “Keeping it secret and internal to your organization until you know what you want to do with it is important,” Greg Bernabeo, partner at FisherBroyles, LLP, said. “Otherwise, the opportunity is lost, and you can’t get the genie back in the bottle.” Benefits of non-obvious thinking People who pursue “non-obvious” ideas are often on the cutting edge of technology in and out of health care, said keynote speaker, Ben DuPont, while discussing innovative ideas with Randy Gaboriault, MS, MBA, senior vice president and chief digital and information officer at ChristianaCare. “Amazon was not founded by a book retailer; Airbnb was not founded by somebody who was in hospitality,” said DuPont, author, entrepreneur, and co-founder and partner at Chartline Capital Partners venture capital fund. “Before Uber, the founders were running around Paris and they couldn’t get a taxi.” Innovative ideas often arise when people consider non-obvious points of view while thinking about solutions, DuPont said. Non-experts have the ability to cut through the clutter and find the frustration, which can lead to innovative solutions, which DuPont explores in his book “Non-Obvious Thinking: How to See What Others Miss.” Health providers, for example, may discover ideas when they move out of their comfort zones. “If you want to be a better doctor, go do something that has nothing to do with medicine,” he said. “Innovation happens at the collision of seemingly unrelated disciplines.” Diversity in the workplace is necessary, “but it’s not just diversity in the way people look: It’s diversity in how people think,” DuPont said. “There are people that think in dramatic and different ways. We need those people around the table. They might say: ‘If we just move this little thing over here’ … and it starts an avalanche that changes the world.” Involving the future generation During the Innovation Summit, students with an interest in STEM (science, technology, engineering, and mathematics) from St. Mark’s High School in Wilmington, Delaware, competed against one another at ChristianaCare’s inaugural HealthSpark ChallengeTM. Twenty-six high school juniors and seniors were divided into five teams, then challenged to brainstorm ideas for solutions to address the negative mental health effects of social media on teenagers. Each team created a concept poster and pitched their ideas to Summit attendees. The attendees then voted for their favorite solution. The winning solution, Editing Identifiers, is designed to help minimize negative feelings about body image among teens. The solution would use AI technology to identify altered photos on social media. The goal would be to show teens that photos of “perfect” people aren’t real and alleviate the feelings of body dysmorphia. Looking forward Summit speakers highlighted many ways that AI is already incorporated into health care, as well as ways that health tech, AI, and robotics may improve care for patients in the coming years. “We are just scratching the surface,” Rao said. “It’s like laparoscopic surgery – years ago, it was considered experimental or dangerous. Today, surgery is commonly done laparoscopically, with better outcomes and less infection. AI can help identify care gaps and get the right treatment to the right patient. It’s going to be good for the patient.” In a rapidly evolving landscape, the integration of AI into health care not only enhances patient care but also creates opportunities for innovation and collaboration, said ChristianaCare’s Gaboriault. “As AI continues to advance, the health care industry stands on the brink of a revolution, one where the possibilities are as vast as the data that fuels them.”

AI Art: What Should Fair Compensation Look Like?

New research from Goizueta’s David Schweidel looks at questions of compensation to human artists when images based on their work are generated via artificial intelligence. Artificial intelligence is making art. That is to say, compelling artistic creations based on thousands of years of art production may now be just a few text prompts away. And it’s all thanks to generative AI trained on internet images. You don’t need Picasso’s skillset to create something in his style. You just need an AI-powered image generator like DALL-E 3 (created by OpenAI), Midjourney, or Stable Diffusion. If you haven’t tried one of these programs yet, you really should (free or beta versions make this a low-risk proposal). For example, you might use your phone to snap a photo of your child’s latest masterpiece from school. Then, you might ask DALL-E to render it in the swirling style of Vincent Van Gogh. A color printout of that might jazz up your refrigerator door for the better. Intellectual Property in the Age of AI Now, what if you wanted to sell your AI-generated art on a t-shirt or poster? Or what if you wanted to create a surefire logo for your business? What are the intellectual property (IP) implications at work? Take the case of a 35-year-old Polish artist named Greg Rutkowski. Rutkowski has reportedly been included in more AI-image prompts than Pablo Picasso, Leonardo da Vinci, or Van Gogh. As a professional digital artist, Rutkowski makes his living creating striking images of dragons and battles in his signature fantasy style. That is, unless they are generated by AI, in which case he doesn’t. “They say imitation is the sincerest form of flattery. But what about the case of a working artist? What if someone is potentially not receiving payment because people can easily copy his style with generative AI?” That’s the question David Schweidel, Rebecca Cheney McGreevy Endowed Chair and professor of marketing at Goizueta Business School is asking. Flattery won’t pay the bills. “We realized early on that IP is a huge issue when it comes to all forms of generative AI,” Schweidel says. “We have to resolve such issues to unlock AI’s potential.” Schweidel’s latest working paper is titled “Generative AI and Artists: Consumer Preferences for Style and Fair Compensation.” It is coauthored with professors Jason Bell, Jeff Dotson, and Wen Wang (of University of Oxford, Brigham Young University, and University of Maryland, respectively). In this paper, the four researchers analyze a series of experiments with consumers’ prompts and preferences using Midjourney and Stable Diffusion. The results lead to some practical advice and insights that could benefit artists and AI’s business users alike. Real Compensation for AI Work? In their research, to see if compensating artists for AI creations was a viable option, the coauthors wanted to see if three basic conditions were met: – Are artists’ names frequently used in generative AI prompts? – Do consumers prefer the results of prompts that cite artists’ names? – Are consumers willing to pay more for an AI-generated product that was created citing some artists’ names? Crunching the data, they found the same answer to all three questions: yes. More specifically, the coauthors turned to a dataset that contains millions of “text-to-image” prompts from Stable Diffusion. In this large dataset, the researchers found that living and deceased artists were frequently mentioned by name. (For the curious, the top three mentioned in this database were: Rutkowski, artgerm [another contemporary artist, born in Hong Kong, residing in Singapore] and Alphonse Mucha [a popular Czech Art Nouveau artist who died in 1939].) Given that AI users are likely to use artists’ names in their text prompts, the team also conducted experiments to gauge how the results were perceived. Using deep learning models, they found that including an artist’s name in a prompt systematically improves the output’s aesthetic quality and likeability. The Impact of Artist Compensation on Perceived Worth Next, the researchers studied consumers’ willingness to pay in various circumstances. The researchers used Midjourney with the following dynamic prompt: “Create a picture of ⟨subject⟩ in the style of ⟨artist⟩”. The subjects chosen were the advertising creation known as the Most Interesting Man in the World, the fictional candy tycoon Willy Wonka, and the deceased TV painting instructor Bob Ross (Why not?). The artists cited were Ansel Adams, Frida Kahlo, Alphonse Mucha and Sinichiro Wantabe. The team repeated the experiment with and without artists in various configurations of subjects and styles to find statistically significant patterns. In some, consumers were asked to consider buying t-shirts or wall art. In short, the series of experiments revealed that consumers saw more value in an image when they understood that the artist associated with it would be compensated. Here’s a sample of imagery AI generated using three subjects names “in the style of Alphonse Mucha.” Source: Midjourney cited in http://dx.doi.org/10.2139/ssrn.4428509 “I was honestly a bit surprised that people were willing to pay more for a product if they knew the artist would get compensated,” Schweidel explains. “In short, the pay-per-use model really resonates with consumers.” In fact, consumers preferred pay-per-use over a model in which artists received a flat fee in return for being included in AI training data. That is to say, royalties seem like a fairer way to reward the most popular artists in AI. Of course, there’s still much more work to be done to figure out the right amount to pay in each possible case. What Can We Draw From This? We’re still in the early days of generative AI, and IP issues abound. Notably, the New York Times announced in December that it is suing OpenAI (the creator of ChatGPT) and Microsoft for copyright infringement. Millions of New York Times articles have been used to train generative AI to inform and improve it. “The lawsuit by the New York Times could feasibly result in a ruling that these models were built on tainted data. Where would that leave us?” asks Schweidel. "One thing is clear: we must work to resolve compensation and IP issues. Our research shows that consumers respond positively to fair compensation models. That’s a path for companies to legally leverage these technologies while benefiting creators." David Schweidel To adopt generative AI responsibly in the future, businesses should consider three things. First, they should communicate to consumers when artists’ styles are used. Second, they should compensate contributing artists. And third, they should convey these practices to consumers. “And our research indicates that consumers will feel better about that: it’s ethical.” AI is quickly becoming a topic of regulators, lawmakers and journalists and if you're looking to know more - let us help. David A. Schweidel, Professor of Marketing, Goizueta Business School at Emory University To connect with David to arrange an interview - simply click his icon now.

World-leading scientist gives annual Aston University Distinguished Lecture on the wonder of smart gels

Dr Raghunath Anant Mashelkar delivered the 2024 Aston University Annual Distinguished Lecture He has been president of the Indian National Science Academy and director general of the Indian Council of Scientific and Industrial Research and has received multiple honours and awards He was also presented with an honorary professorship in recognition of his outstanding contribution to academia and beyond. Dr Raghunath Anant Mashelkar delivered Aston University’s 2024 Annual Distinguished Lecture to more than 70 invited guests on 22 April. One of the world’s renowned figures in polymer science, research leadership and intellectual property rights, Dr Mashelkar, a chemical engineer, is a global leader and inspiration in his native India and the wider international research community. In recognition of his outstanding contribution to the research community, Dr Mashelkar was bestowed with an honorary professorship at the end of the lecture by Professor Aleks Subic, Vice-Chancellor and Chief Executive of Aston University. The title of Dr Mashelkar’s lecture was ‘Trapeze Artistry in Biomimetic Smart Gels’. ‘Smart gels’, made from synthetic polymers (types of plastics), can be developed with specific functional properties, such as reacting to changes in temperature and pH. Whilst Director at India’s National Chemical Laboratories, Dr Mashelkar led work which discovered smart gels which can mimic biological functions (biomimetic), including being self-healing, self-organising, and acting as enzymes in chemical and biological processes. Their properties can be reversibly switched on or off, or they can change volume or shape, through the use of pH or temperature, the ‘trapeze artistry’ of the title, giving them many uses. This included temperature-responsive comfortable insoles for diabetic feet, drilling fluids which can quickly, but reversibly, plug an oil well, and medical devices for the digestive system, which resist the acidic environment of the stomach to deliver drugs, but dissolve harmlessly in the alkaline environment when they leave the stomach. One of the defining factors of Dr Mashelkar’s work has been serendipity. He told the story of a smart gel that dried to become a completely different shape when dried in his laboratory’s old oven rather than the new oven. One of his research team discovered this was due to the presence of copper ions from corrosion in the oven, which changed the way the molecules arranged themselves and led to a whole new area of research on polymer self-assembly. As he said: “Eyes do not see what the mind does not know. Look at the 'failed' experiment very carefully, maybe the next big breakthrough is waiting there!” Dr Mashelkar also spoke on his life story, from a young boy in India, attending the local municipal school, to addressing thousands of the world’s best minds at places like the World Economic Forum and the World Bank. His great passion now is ‘Gandhian Engineering’ based on the principle of more performance, from fewer resources, for more people. He created the Anjani Mashelkar Award, named after his mother, for the best low-cost, high-technology innovations. Winners have included an Internet of Things-based maternal healthcare system for rural areas and a smartphone app to assess lung health. Dr Mashelkar is proud of his work on Gandhian Engineering. Speaking after the lecture he said: “Rising inequalities create social disharmony. Now, you can’t make the inequalities vanish because you can’t make poor people rich overnight. What is needed is access. Can we give access equality, despite the income inequality? And that’s the principle of Gandhian Engineering. In my lecture I showed a photograph of a poor lady in a hut with a mobile, and a rich lady from a city who also had a mobile. This is equal access. It was not possible previously when mobiles were so expensive. In India now we have good public infrastructure. Data is now Rs 4 per GB and wireless is free. Once you start giving access, there is a parity.” Professor Subic said: “It was a privilege and a pleasure to welcome such a celebrated scientist as Dr Mashelkar to give the Aston University Annual Distinguished Lecture this year. Once again, we have brought a renowned international leader to engage with our community and present some of the most exciting research going on in our world today, while also inspiring the next generation of researchers and international citizens. I am deeply honoured that Dr Mashelkar has accepted an honorary professorship from Aston University in recognition of his international standing and significant contributions to scientific research and innovation.” The distinguished lecture series was established by Professor Subic in 2023. It brings influential speakers to the University to address major scientific breakthroughs, as well as social, cultural and policy issues. The first distinguished lecture was given by Nobel Laureate Peter Agre in 2023. Speaking after the lecture, Dr Mashelkar said: “I am absolutely honoured to get this honorary professorship from Aston University. Aston University is excelling in a number of areas. In terms of its future, I consider that to be very bright for the simple reason that the University’s dynamic Vice-Chancellor is making big changes with speed and skill, with expansion, inclusion and excellence. To be honoured with an honorary professorship is one of the greatest satisfactions and fulfilments of my life.” The lecture was followed by a drinks reception to allow guests to meet Dr Mashelkar and further discuss his work. A video recording of the 2024 Annual Distinguished Lecture will be made available on the University website at a later date.

Georgia Southern Libraries celebrates grand opening for Patent and Trademark Resource Center

Patenting an invention and trademarking a product name can be challenging, yet protecting intellectual property is vital. To that end, Georgia Southern University Libraries celebrated the grand opening of its Patent and Trademark Resource Center (PTRC) with ribbon-cutting events at the Armstrong Center in Savannah this past September. The PTRC is part of a nationwide network of 84 public, state and academic libraries designated by the United States Patent and Trademark Office (USPTO) to support the public with trademark and patent assistance. Georgia Southern Libraries is one of two designated PTRCs in Georgia. “With the recent economic development of Hyundai’s Motor Group Metaplant America, associated suppliers and regional commerce, our PTRC cultivates a culture of innovation and entrepreneurship,” stated Georgia Southern’s PTRC librarian representative John Schlipp. “Innovators and creative colleagues utilizing the PTRC service at Georgia Southern University Libraries will be able to determine the potential for their patent applications and federal registration for a trademark on their inventions, products or services.” Georgia Southern’s PTRC partners with the University’s Business Innovation Group (BIG) and other regional, like-minded organizations to foster innovation and creativity. Dignitaries from the USPTO, including Deputy Under Secretary of Commerce for Intellectual Property and Deputy Director Derrick Brent, and Georgia Southern President Kyle Marrero attended the ribbon-cutting in Savannah. Both events acted as workshops for inventors, entrepreneurs and business startups. The PTRC at Georgia Southern can assist patrons in conducting their own free patent and trademark searches on specialized USPTO databases. Additionally, patrons can receive one-on-one instruction on the application process, improve awareness of a product field, determine application feasibility and prepare for consulting with an attorney. Interested in learning more? Contact Georgia Southern's Director of Communications Jennifer Wise at jwise@georgiasouthern.edu to arrange an interview today.

Worth Longest research on more targeted aerosol drug delivery systems

Michael Hindle, Ph.D., a professor in the VCU Department of Pharmaceutics, and P. Worth Longest, a professor in the VCU Department of Mechanical and Nuclear Engineering, have invested years of time and millions of dollars to address challenges found in the field of medical aerosols. In particular: While smaller particles are more effective in delivering drugs into the lungs and airways, these tiny particles are often exhaled out immediately when taking a dose. Current aerosol delivery systems — think asthma inhalers — effectively deliver just 10 percent of an aerosolized dose. That’s fine for most asthma and COPD sufferers who use standard inhalers with existing medications, as these patients only need a small amount of the potent drugs to reach the lungs and have an effect. “But the medical world wants to use the lungs for delivery of other drugs, whether it’s locally to the airways or systemically to the body, and for that, you need more efficient devices,” Hindle says. To effectively use inhaled drugs for complex medical conditions requires more of the aerosol to reach the airways and to potentially target different regions of the airways — plus the devices to get them there. “Our work is about doing something different — changing that ballgame from having 90% of the drug wasted and 10% make it to the lungs, and flip it so that we get just 10% lost and 90% in the lungs,” Hindle says. “That’s always been our goal.” Taking aerosols from lab to lung Over more than a decade, the duo and their teams have created the three keys to making aerosol drug-delivery work: “developing the strategy, developing the device, and developing the formulation,” says Longest, the College of Engineering’s Louis S. and Ruth S. Harris Exceptional Scholar Professor. “When you see inhalation of aerosols fail, or a new pharmaceutical aerosol product fail, one of these areas has often been neglected. Between my lab and the Hindle lab, we have expertise in each of these different areas.” The fourth component — commercializing their inventions — is underway through a partner in Quench Medical in a deal signed in 2020 thanks to VCU Innovation Gateway. The Minnesota-based company, led by founder and CEO Bryce Beverlin II, Ph.D., has identified lung cancer, severe asthma, and cystic fibrosis as potential initial applications using VCU’s intellectual property, the licensing of which covers both the aerosols and the delivery devices. “It’s very difficult for an academic institution to develop a drug product,” says Hindle, the Peter R. Byron Distinguished Professor in Pharmaceutics. “So Bryce has moved forward with a team of manufacturers, clinical testing plans, and is talking to the Food and Drug Administration.” The VCU researchers had not previously pursued lung cancer as a possible application until Quench came along, Hindle says. “The idea that you could deliver a chemotherapy locally to the lungs is obviously very advantageous, because you don’t get the systemic side effects through the body like with traditional chemotherapy,” he says. “You’re just delivering drugs direct to that site of action for targeting the metastases in the lung.” In May, Quench presented data using the VCU technology to the Respiratory Drug Delivery conference in Florida showing that using a chemotherapeutic dry powder aerosol in rats was highly effective. It significantly reduced tumor burden but used half of the standard IV-delivered chemo dose. “This approach also aims to decrease the total drug delivered with reduced systemic drug levels in the circulation to decrease systemic toxicity,” the report read. It noted the efforts “solve a critical unmet medical need to develop new strategies to improve treatment outcomes in patients with lung cancer.” Heavy interest nationally Hindle and Longest have millions of dollars in funded projects underway, backed by the National Institutes of Health, U.S. Food & Drug Administration, and the Bill & Melinda Gates Foundation. Their work is building on the reputation of VCU’s Aerosol Research Group, founded in 1988 by emeritus professor Dr. Peter Byron (the name on Hindle’s professorship). The group’s work spans a wide variety of research areas in aerosol formulation and delivery. Hindle and Longest have worked together since 2006. While Hindle is focused on drug formulations, Longest is the engineering and computer modeling expert. His background is in biological fluid flow, and prior to joining VCU in 2004 had worked in the area of blood flow in vascular disease. But he wanted to differentiate his work, and found VCU’s reputation in medical aerosols was the place he could, in his words, “make an impact.” Through computer models, Longest and his team can understand how powders or liquids will turn into aerosol particles and the behaviors they will undertake when delivered into the body. “The lung is an area of the body where we have all these complex phenomena occurring with airflow and moving walls,’” he says. “It really takes high performance computers to understand it.” Drs. Longest and Hindle have developed a series of technology platforms that produce particles that are tiny when entering the lungs to minimize deposition losses in the mouth and throat — but grow in size as they travel down the warm, humid airways. One of the devices uses a mixer-heater to produce tiny particles, other technologies use a pharmaceutical powder or liquid containing a simple hygroscopic excipient such as sodium chloride; it is this excipient that attracts water from the lungs and makes the particles grow and deposit in the lungs with high efficiency. Eyes on infants Lately, the pair have been working on a method of aerosol drug delivery to newborns and prematurely born babies. “It’s a different set of challenges when you’re trying to deliver aerosols to infants who are born prematurely, and don’t have the ability to breathe on their own due to the lack of airway surfactant,” Hindle says. “And that’s something that, academically, we thought we were in a position to try and make a contribution to the field.” The group is working with funding from the NIH and the Bill and Melinda Gates Foundation to develop a method of delivering an aerosol surfactant to infants that will hopefully remove the need to intubate these fragile babies. In addition to striking licensing deals with Quench and building relationships with additional partners, Innovation Gateway has backed the pair’s work with an initial $25,000 from VCU’s Commercialization Fund as well as a just-awarded additional $35,000. “We turned that into a series of intellectual property that has resulted in three licensed patents and a whole family of IP in relation to both formulations and devices,” Hindle says. “There’s been lots of interest in delivering drugs to the lungs, it’s just been very difficult to institute any sea change, because the pharmaceutical industry is relatively risk averse.” And so their research continues, as Quench moves forward to bring their inventions to the bedside. “What I’m doing, I don’t really consider it work — it’s an opportunity to interact with great colleagues and contribute to a mission that will be very helpful to a broad range of people,” Longest says. “I also see it as a big responsibility. We want to do this in the right way. Because people’s health and lives are at stake. We want to make sure we approach this with a large sense of responsibility, and do our best.”