In most industries, trade secrets play a background role. The core IP is visible in the product, so patents take the lead. Secrets are just for the “extras,” like how it’s made.
But AI flips that around. Your secret sauce is the product. Core IP – like models, methods, data – is all hidden, which puts protecting these secrets front-and-centre in your strategy.
But protecting a secret sauce is harder than it sounds. Because every time you speak – pitches, sales calls, partner discussions – you risk revealing too much.
And that’s how secrets drip. Not through hacking. But through unplanned conversations.
Founders often say they’re protecting their AI as secret. But unless you’ve clearly defined what matters – and how you’ll safeguard it – you’re not really protecting anything.
Real protection requires:
1. Knowing what counts.
You can’t protect everything. Identify and focus on the IP that truly matters top your business, feeds your differentiation and fuels your value proposition.
2. Knowing where the risk is.
Tailor what you say, using need-to-know, even with customers and collaborators, even under NDA.
3. Planning for discussions.
Planning ahead is essential, so you can share what’s necessary, without oversharing. Your success will depend on your twin abilities to speak engagingly and effortlessly about your business, without giving away the farm at the same time.
4. Not overtrusting NDAs.
They’re essential, but not bulletproof – because they are very difficult to legally enforce. Unnecessary disclosure is still a risk, even under NDA. So, don’t let that piece of paper make you too comfortable.
All that stands between you and an effective secrets strategy is a bit of focus and some preparation.
You can even start today.
Every AI company has a secret sauce. Whether yours stays secret is up to you.