Set up in 1999 with funding from an alumnus Dr. K B Chandrasekhar (USA), the AU-KBC Research Centre operates in the Public-Private-Partnership (PPP) mode, and carries out interdisciplinary research across the domains of Information Sciences (Natural Language Processing, Cryptography and Network Security, Wireless Networks) and Life Sciences (Nano-scale Biology, Biosensors, detection/Diagnostics, Bioinformatics). It combines Academic Research leading to publications and theses with IP-oriented R&D work aimed at commercialisation and revenue generation.

The Life Sciences Division of the Centre has expertise and facilities sharply focused on the theme of single molecular processes at the nanometer scale, and some of the specific topics of investigations include cancer biology, biology of the cardio vascular system, biosensor-based detection/diagnostics, bioinformatics and modeling, etc. Applied Research here has led to Technologies, Products and Patents that are being commercialised.

The Information Sciences Division has generated a number of technologies in the areas of Information Extraction, Knowledge Discovery, Indian Language Computing as well as Internet Security, in addition to offering high-end consultancy and training programs in the WLAN/WiFi-WiMax areas. The National Resource Centre for Free/Open Source Software (NRCFOSS) funded by the Dept. of I.T., Govt. of India, is a part of this Division.