Detroit Engineered Products pivots from a services model

Chennai: As artificial intelligence reshapes the engineering and product development landscape, Detroit Engineered Products (DEP), a provider of engineering research and development services, is accelerating its transition from a services-heavy model to a platform-led approach. Radha Krishnan, president and founder, said there is a momentum around AI in engineering with generative design, digital twins and faster product development as companies want to reduce development cycles and are more willing to adopt advanced tools early in the development cycle than before.This becomes crucial as AI is increasingly adopted in the digital engineering of product development, especially as the company remains largely services-led. Software and platforms currently form a smaller but fast-growing part of its revenue mix, he said. "Our goal over the next year is to significantly increase the contribution from platforms. The idea is to build a more scalable and predictable business while continuing to deliver engineering services alongside it," he said.When asked whether AI might cannibalise services revenue, Krishnan dismissed the possibility, adding, "It helps us move towards higher-value engagements and platform-led delivery, which is positive for margins over time."India has been one of the fastest-growing markets, driven by a shift towards adopting advanced simulation and AI earlier in the lifecycle, along with global OEMs expanding their engineering and R&D footprint in the country. "The key reason for AI adoption is the impact it has on time, cost, and decision quality when applied early," he said.