This compound is primarily utilized in the field of organic synthesis, where it serves as a key intermediate in the production of more complex molecules. Its indole structure makes it valuable in the development of pharmaceuticals, particularly in the synthesis of compounds that target neurological and psychiatric disorders. Additionally, it is used in research to study the biological activity of indole derivatives, which are known for their potential therapeutic properties. The compound's acetic acid group allows for further chemical modifications, enabling the creation of diverse chemical entities for drug discovery and development.