AI is transforming the landscape of patent creation in India's technology hubs, according to executives from global firms and local innovation centers. Radhakrishnan Kodakkal, head of Daimler Truck Innovation Center India, highlighted that the number of intellectual properties, patents, and trade secrets generated by global companies in India is already on the rise. He emphasized that AI will further accelerate this trend, enabling faster and more efficient innovation processes.

India's tech hubs have evolved from being mere low-cost back-office centers to becoming key innovation centers for global firms. AI tools are playing a pivotal role in this transformation by handling complex tasks such as coding and design, which were previously time-consuming and required significant human intervention. This shift is not only enhancing productivity but also attracting more multinational corporations to set up operations in India.

Last fiscal year, Indian global capability centers (GCCs) generated about $98.4 billion in revenue, hitting industry projections four years ahead of schedule, as reported by Nasscom and consultancy Zinnov. Additionally, patent filings in India rose by 11.3% to over 90,000 in fiscal 2024, with nearly half of these filings coming from multinational companies. This growth underscores the increasing importance of India as a hub for innovation and intellectual property creation.

Despite the upward trajectory, challenges persist. Deena Dayalan, global head of digital operations and cloud transformation at Kimberly-Clark, noted that the company does not conduct any patent filings from India, opting instead to do so through the U.S. due to the difficulties faced in the Indian Patent Office. Harsh Kaushik, a New Delhi-based expert, pointed out that backlog and manpower shortages have long slowed the pace of examination and grant at the Indian Patent Office, creating bottlenecks for innovators.

The Indian Patent Office is still grappling with systemic issues that hinder the efficient processing of patent applications. However, the increasing use of AI tools and the growing number of patent filings suggest that the situation may improve in the coming years. As more companies invest in AI-driven innovation, India's tech hubs are likely to become even more central to the global patent ecosystem, despite the current challenges.