Daimler Truck Executive Highlights AI-Driven Acceleration of IP Creation in India's Engineering Centers

Artificial intelligence (AI) is playing a pivotal role in transforming Indian engineering hubs of global companies, enabling faster generation of intellectual property (IP) and more effective management of supply chain risks. Radhakrishnan Kodakkal, the newly-appointed head of Daimler Truck Innovation Center India, shared insights on this evolving landscape during a recent interview with Reuters.

Historically, India has served primarily as a technology support and back-office destination for multinational corporations. However, Kodakkal noted a significant shift as these global firms increasingly rely on Indian engineering centers to contribute directly to product innovation. "The contribution of Indian GCCs on IP is in general increasing," he stated, underscoring the growing importance of these hubs beyond traditional support functions.

Kodakkal explained that the integration of AI into engineering processes was already underway prior to the recent surge in AI adoption but is now accelerating innovation and product development efforts. This technological advancement is enabling teams to generate new product ideas more rapidly while simultaneously addressing supply chain uncertainties.

The global manufacturing sector has faced intensified challenges since the pandemic, including shifting trade policies, tariffs, and geopolitical tensions. These factors have compelled companies to rethink sourcing strategies and restructure supplier networks to maintain resilience.

As an example, Kodakkal highlighted the use of AI and multivariate analysis to predict raw material costs, such as copper used in wiring harnesses. This capability allows manufacturers to track material composition and price fluctuations more closely, adapting to changing tariff structures and market conditions.

Daimler Truck's Bengaluru-based innovation center operates across the full vehicle lifecycle, encompassing engineering concepts, simulations, software development, connectivity, and analytics. To support this broad scope, the center collaborates with universities and invests in internal training programs to cultivate the "right talent," according to Kodakkal.

The rise of AI and India's transition from a technology support base to a product innovation hub have intensified competition for specialized skills. Kodakkal emphasized a strong demand for niche expertise in areas such as AI, cybersecurity, and digital technologies, reflecting the evolving hiring landscape.

This transformation positions Indian engineering centers as critical contributors to global innovation pipelines, leveraging AI to enhance intellectual property creation and supply chain agility amid a complex international environment.