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Artificial Intelligence (AI) has shifted from a research focus to a transformative technology, particularly impacting India’s micro, small, and medium enterprises (MSMEs). Advances in deep learning, generative AI, and agentic systems, supported by affordable cloud solutions, have accelerated AI adoption across sectors like healthcare, finance, manufacturing, and retail. Initiatives from the government and public-private partnerships are enhancing AI literacy, but MSMEs continue to face challenges in areas such as affordability, infrastructure, talent, and regulatory complexity.
AI patent landscape and IP challenges
India’s AI patent filings are surging, particularly in the areas of generative and agentic technologies. However, only a small fraction of applications are granted, due to ongoing legal and procedural challenges. Patent trends are shifting towards specialised applications in healthcare, education, and business intelligence, with generative AI and large language models (LLMs) leading the activity. MSMEs face challenges with IP protection due to technical complexity, ambiguous ownership, and evolving legislation.
Risks and governance
The widespread adoption of AI brings risks to trustworthiness and intellectual property management. Legal frameworks designed for human inventors are under strain, with global precedents clarifying that only humans can be inventors and that AI-generated content often lacks copyright protection. New risks include lack of transparency, bias, misinformation, deepfakes, and trademark misuse, prompting calls for stronger governance and ethical standards.
Recommendations and policy interventions
TCS and CII have collaborated to author a report examining the impact and development of AI on IP. It highlights the rapid evolution of AI from a research-centric technology to a transformative force driving business innovation across Indian enterprises, especially MSMEs.
The report recommends robust IP strategies and responsible AI adoption, including documenting human contributions, due diligence on training data, monitoring AI outputs, and investing in workforce upskilling. Policy interventions should harmonise global IP frameworks, introduce protections for AI-generated assets, and promote the ethical use of AI. MSMEs are encouraged to focus on incremental digital transformation and accessible training.
Swipe LeftSwipe RightAt TCS, we empower creators, foster an innovation culture and invest heavily in IP to drive sustainable growth while safeguarding ideas and helping build India's IP ecosystem for global competitiveness.
Ashvini Saxena
Vice President and Head - TCS Components Engineering Group and Digital Software and Solutions, Tata Consultancy Services Ltd.
Conclusion
A balanced roadmap combining innovation, regulatory foresight, and capacity building is essential for AI to empower India’s small businesses and foster resilient, future-ready enterprises.
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