Global companies are increasingly relying on artificial intelligence to drive the creation of new products and intellectual property at their technology hubs in India. This development underscores India’s growing importance as an innovation center, even as AI continues to transform the nature of work.
Executives from major companies like Publicis Groupe’s Epsilon, Kimberly-Clark, and Daimler Truck have noted that automation is enabling their global capability centers (GCCs) in India to move beyond routine tasks. Instead, these centers are focusing on more complex work and the development of proprietary technology.
Radhakrishnan Kodakkal, head of Daimler Truck Innovation Center India, stated at a recent summit that the number of intellectual properties, including patents and trade secrets, created by GCCs in India is on the rise, with AI expected to further accelerate this trend.
India’s Role in Global Innovation
India’s tech hubs have evolved from their origins as low-cost back-office operations to become key innovation centers for global firms. Despite global economic uncertainties, India’s large pool of AI-skilled workers and cost advantages continue to attract investment into these centers.
According to a report by Nasscom and consultancy Zinnov, Indian GCCs generated approximately $98.4 billion in revenue last fiscal year, achieving industry projections four years ahead of schedule. Another report from Nasscom indicated that patent filings in India rose by 11.3% to over 90,000 in fiscal 2024, with nearly half of these filings originating from multinational companies.
Challenges in Local Patent Filings
Despite these successes, executives have pointed out that the contributions of Indian centers are often understated. Much of the intellectual property they generate is filed through parent entities in the United States and Europe due to challenges in the Indian patent filing process.
Deena Dayalan, global head of digital operations and cloud transformation at Kimberly-Clark, explained that patent filings in India can take five to six months, which is about double the time required in the U.S. The approval process can take several more years, further complicating the situation.
India’s patent system faces issues such as a shortage of examiners, high legal costs, and procedural ambiguities, which deter companies from filing patents locally. However, recent efforts to digitize Patent Office functions and centralize application allocations have eased the filing process somewhat, according to IP lawyer Harsh Kaushik.
Executives remain optimistic about the future, with strong foundations laid by Indian GCCs expected to support further growth in high-value work. Pratik Nath, managing director of Epsilon India, expressed confidence in the increasing volume of intellectual property work being conducted in India.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
