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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.”

Innovating (Western) North Carolina

NCInnovation may sound like a catchy name for a craft beer, but it is much more than a name. NCInnovation is a nonprofit organization created to unlock the innovative potential of North Carolina’s world-class public universities. While the state of North Carolina is a well-recognized leader in research and development, the output does not measure up to the state’s size and historically, most of the state’s research efforts have stemmed from the Research Triangle Park. Today, other regions of North Carolina are making a name for themselves with innovative concepts that University of North Carolina System schools are developing through academic-industry partnerships every day. This is where NCInovation steps in — to bridge academia and industry, to move inventions to market and create long-term economic benefits for all regions of the state. This is done by supporting researchers with grant funding, mentorship and partnership development to commercialize applied research breakthroughs and accelerate the transition from the classroom to the production floor. NCInnovation’s focus is on supporting North Carolina public university research that has commercial promise. Four regional networks are located at UNC System campuses in Charlotte, Cullowhee, Greensboro and Greenville. WCU is part of NCInnovation’s Western Regional Network, led by Meagan Coneybeer, regional innovation network director. “We are tech agnostic, which means that we are open to any faculty member here in the western part of the state at our institutions which include WCU, UNC Asheville, North Carolina School of Science and Mathematics Morganton and Appalachian State,” Coneybeer said. The program supports faculty working on industry-led, program-based innovations in partnership with industry or those who are interested in collaborating on large scale regional economic development projects that would be anchored in research, experience and excellence of a university collaboration. As part of the pilot grant funding, Brian Byrd, WCU’s mosquito expert and professor in the environmental health sciences program, along with Scott Huffman, professor in WCU’s Department of Chemistry and Physics, have been approved for grant funding from NCInnovation to continue their work in developing tools that utilize spectroscopy to analyze vibrational signals from mosquitoes. “Using spectroscopy, we are developing tools that analyze chemical signals from mosquitoes to tell us the species, sex, age of the mosquitoes and if they are infected,” Byrd said. “Using our approach, we can rapidly assess the risk of infection in the Aedes mosquitoes that transmit dengue fever and Zika.” Currently, it takes days or weeks to conduct this type of risk assessment, but the approach Byrd and Huffman are developing will make the work much quicker and more efficient. “There is a similar Aedes mosquito in Western North Carolina that transmits La Crosse virus causing encephalitis in children every year,” Byrd said. “This tool gives us a platform to improve risk assessments and opportunities to reduce human disease.” For Huffman, this project hits close to home. “When I was a boy, I almost died from a vector-borne disease,” he said. “This experience impacted me. While I have no skills or ability to address the particular disease that I experienced, working with Brian for the past six years has given me the opportunity to contribute in a small way to the field of pediatric vector-borne diseases. This funding from NCI will help us translate some of our fundamental laboratory research into an applied tool that hopefully will benefit society.” The grant approval is conditioned on standard next steps, including executed grant agreements and formal notification to government partners. The funding is part of NCInnovation’s larger mission to unlock the innovative potential of North Carolina’s world-class universities. “Dr. Byrd and Dr. Huffman’s award from NCI is a testament to the exemplary dedication to teaching and applied research by the outstanding faculty at Western Carolina University,” WCU Chancellor Kelli R. Brown said. “This funding serves as a catalyst for additional innovative exploration by our faculty as we strive to bolster economic condition in Western North Carolina and indeed the entire state. I would like to thank the General Assembly for supporting exciting, applied research underway here at WCU and across the UNC System.” The grant funding from NCInnovation’s larger effort to support the development and commercialization of university research in North Carolina. The campus-to-industry pipeline has been the foundation of American innovation for decades. There is so much applied research happening and this gives us the oppertunity to support that journey to commercialization and to partner with universities to bring successes to market. - Bennet Waters, President and CEO of NCInnovation “We are consistently blown away by the applied research innovations coming out of North Carolina’s public universities,” said Michelle Bolas, NCInnovation executive vice president and chief innovation officer. “Dr. Byrd’s and Dr. Huffman’s work has promising applications throughout the state and country and we’re excited to watch this research continue to develop.” Bennet Waters, president and CEO of NCInnovation; is excited about the opportunities that will stem from these partnerships. “At its core, NCI is a regional economic development opportunity and the concept is to use the existing or potentially applied research from our university campuses and not just those that are in the RTP,” said Waters. “There is so much applied research happening and this gives us the opportunity to support that journey to commercialization and to partner with universities to bring their successes to market. NCInnovation puts boots on the ground to foster these relationships. This is not a Raleigh-centric model; this is about helping folks that live beyond population centers to develop economic opportunities.” The organization received $500 million in state funding as an endowment to accelerate the commercialization of research at universities. NCInnovation will deploy the interest earned on the endowment to provide grant funding and support services to university researchers. By doing so, NCInnovation will support the growth of new businesses and licensing revenue from commercialized research, helping boost economic development in the region. The program supports faculty working on industry-led, program-based innovations in partnership with industry or those who are interested in collaborating on large scale regional economic development projects that would be anchored in research, experience and excellence of a university collaboration. “The partnership between WCU and NCI presents incredible opportunities to promote research-based entrepreneurship, product development and commercialization, and bolsters the likelihood of new job creation in the western portion of the state,” said Rich Price, WCU’s chief marketing and strategic partnerships officer. “The investment potential presented by NCInnovation removes so many barriers to university-led product and concept realization and the creation of intellectual property that will fuel economic growth.” Looking to know more or cover this topic - we can help. Brian Byrd and Scott Huffman are both available to speak with media - simply click on either expert's icon now to arrange an interview today.

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.

Brexit caused a large negative effect on UK trade pre-pandemic - new Aston University research

Professor Jun Du and Dr Oleksandr Shepotylo analysed the causal effect of Brexit on the UK’s services trade between 2016 and 2019 They found the UK experienced an average shortfall of £18.5 billion worth of services exports for each of those years Transport, Travel, Insurance and Telecom sectors experienced significant decline post-2016 No significant decline was found in other services including intellectual property, construction and financial. New research from economics experts at Aston University has found Brexit has caused a largely negative effect on UK services trade since the EU referendum. Professor Jun Du and Dr Oleksandr Shepotylo, from Aston Business School, analysed the causal effect of the Brexit referendum on UK’s services trade over the period between 2016 and 2019, in comparison to other major services exporters. They found the uncertainty associated with the UK-EU trade negotiations following the referendum caused harms to the UK services economy as a whole, reducing firms’ exports of services. This damages the competitiveness of services sectors which make up a lion’s share of the UK economy in terms of gross output, value-added and jobs. Professor Du and Dr Shepotylo used a Synthetic Difference in Differences (SDID) estimator to construct a counterfactual of the UK, had it not voted leave in 2016, to compare its services exports performance. This was done by comparing the actual performance of the UK with the modelled performance of a country that looks much like the UK, but did not vote to leave the European Union. They found Brexit resulted in the UK experiencing an average shortfall of £18.5 billion worth of services exports every year between 2016 and 2019 relative to what it would have been, had the UK remained in the EU. The impact varied considerably between different types of services. The UK’s exports in the category of transport, travel, insurance and telecom services saw a statistically significant decline following the referendum. No significant decline was found in business, intellectual property, construction, financial or personal, cultural and recreational services. In addition, Professor Du and Dr Shepotylo did not find evidence to suggest that UK businesses have redirected exports in services from the EU markets to those outside the EU, which is in contrast to exports in goods. The research suggested that Ireland has benefited significantly during this period, with growth in post-Brexit services exports up by £24 billion annually over 2016 to 2019 in the country compared to the counterfactual scenario if Brexit did not occur. This translates to 14.75% of Ireland’s 2019 total services exports, with growth clustered largely in the telecoms, business, intellectual property, and insurance sectors. Jun Du, professor of economics at Aston Business School, said: “Brexit marked a rupture in the highly integrated UK-EU services markets that had been developed during the UK’s membership of the single market. However, the UK’s strength in services was not reflected in the government’s ambitions for the sector in the EU-UK trade negotiations that followed the referendum. “There are other winners besides Ireland in some post-Brexit services areas. The Netherlands have increased considerably in ‘Business’ and ‘Intellectual Property’ exports. “Spain has seen growth in ‘Travel and transport’ services exports. Germany has gained in ‘Transport’, ‘Insurance’, ‘Telecom’ and ‘Intellectual Property’ services exports. While Ireland seems to have done exceptionally well in relation to the export of ‘Telecom’ services, a sharp contrast emerges to the lost exports not just from the UK, but also from the Netherlands, Switzerland and France.” Dr Oleksandr Shepotylo, a senior lecturer in economics, finance and entrepreneurship at Aston University, co-wrote the working paper and said: “UK services exports are 5.7% lower than they would be without Brexit. It reflects an overall decline of the UK as a place for doing business. “What economists tend to agree on is that the UK’s exit from the EU’s custom union and single market may have more significant impacts on services than goods, and more severe impact on post-Brexit regulated services than unregulated services. “It will take some time for the full impact of Brexit on UK services to emerge. Freedom of movement and data flow in some areas between the UK and EU could remain restricted. Stability, transparency and regulatory consistency in financial markets could be challenged. But new opportunities might surface. “Continued trade negotiations and dialogues regarding trade liberalisation are essential with the EU and large, fast-growing markets beyond Europe. Crucial to understanding these impacts will be reliable data and rigorous analysis. Our modelling of marked losers and winners in post-Brexit services trade provides new evidence for an open discussion of the post-Brexit trade in services.” You can read the full working paper HERE

Why customers hold the key to a company’s true valuation

When determining a fair valuation for a company—especially in anticipation of an initial public offering (IPO)—investors often rely heavily on “top down” approaches focusing primarily on traditional financial measures to do so. But what if this approach doesn’t paint the full picture? Daniel McCarthy, assistant professor of marketing at Emory’s Goizueta Business School, is building the case that augmenting traditional data sources with customer behavior data gives investors a more accurate company valuation. For the past several years, McCarthy and Peter Fader, professor of marketing at the Wharton School of the University of Pennsylvania, have worked to refine a customer-driven investment methodology they created. “Customer-based corporate valuation (CBCV) simply brings more focus to how individual customer behavior drives the top line,” they explained in “How to Value a Company by Analyzing Its Customers,” an article published in the Harvard Business Review (HBR) earlier this year. “This approach is driving a meaningful shift away from the common but dangerous mindset of ‘growth at all costs,’ towards revenue durability and unit economics—and bringing a much higher degree of precision, accountability, and diagnostic value to the new loyalty economy.” Fader, McCarthy’s PhD advisor while he was at Wharton, had done some of the seminal work on forecasting customer shopping/purchasing behaviors. This helped build baseline expertise for how one could go about the customer-level modeling. McCarthy recognized that this behavioral modeling could be put to good use in a financial setting, if done the right way. “There was this untapped source of intellectual property that’s been accumulating within marketing over the last 30 years,” McCarthy said. While other academics have done some conceptual work in the area, none, McCarthy noted, had done so in a way that was consistent with how financial professionals go about performing corporate valuation. McCarthy and Fader merged these well-validated customer-level models with standard corporate valuation methods, then put their resulting valuation tool head-to-head with alternative approaches. They found that their CBCV model subsequently outperformed. A full article on this subject is attached, within it, you will find key CBCV highlights such as: Using unit economics to more accurately predict revenue forecasts Gaining access to the right data The CBCV model is also good for managers and for customers Working to have publicly traded companies adopt CBCV McCarthy’s work on the CBCV methodology has earned him a number of awards, including the MSI Alden G. Clayton, American Statistical Association, INFORMS, and the Shankar-Spiegel dissertation awards. If you are a journalist covering this topic or if you want to learn more about this work or customer-based corporate valuation – then let our experts help. Daniel McCarthy is an Assistant Professor of Marketing at Emory University's Goizueta School of Business where his research specialty is the application of leading-edge statistical methodology to contemporary empirical marketing problems. If you are looking to contact Daniel – simply click on his icon now to arrange an interview today.