Bengaluru Becomes Key AI Advertising Base For US Companies

India-West News Desk

BENGALURU – Major U.S. corporations are increasingly utilizing their India-based global capability centers to manage advertising and marketing functions internally. By deploying artificial intelligence tools, these companies are reducing their dependence on external agencies and accelerating the production of marketing materials.

Industry executives in Bengaluru told Reuters, the city has become an important testing ground for AI-driven creative operations.

“Bangalore is at the nose of the rocket in terms of piloting and creating certain prototypes,” said Nihar Nidhi, India Managing Director of Catalyst Brands, the parent company of J.C. Penney, to Reuters.

The company is currently testing AI-generated images and videos for online listings, reducing the need to transport inventory internationally for traditional photo shoots.

The shift is reducing production timelines for several companies. Kimberly-Clark has implemented an India-developed AI platform that has cut content creation timelines substantially.

Other U.S. retailers are also using AI tools in advertising operations. At Roundel, the advertising business of Target, copywriters are using AI to generate material and adapt to changing consumer trends more quickly.

Analysts said the rise in internal AI adoption is affecting parts of the traditional advertising agency model.

While these tools are gaining traction, some analysts said traditional agencies remain important for companies requiring specialized expertise.