NEW DELHI: Private investment in AI in India more than tripled to $4.1 billion in 2025 from $1.2 billion in 2024. However, only 23.4 per cent of Indian firms reported using AI, compared with 42.7 per cent of firms in the United States, according to a World Bank survey released on Tuesday.
The gap is wider when adoption is measured by whether companies pay for AI. Only 3.5 per cent of Indian firms reported paying for AI software or subscriptions, compared with 23.1 per cent of US firms.
The figures suggest that the sharp increase in AI investment in India has yet to translate into comparable adoption across formal businesses.
The World Bank released the findings as part of its October India Development Update, which raised India’s FY27 growth forecast to 7.1 per cent from its earlier estimate. The report identified AI as a potential source of productivity growth but warned that skills, infrastructure and other barriers could limit adoption.
India remains among the leading emerging-market economies on AI readiness, according to the report. However, the World Bank’s AI Adoption Index shows a substantial gap with the US.
India scored 0.27 on the index, compared with 0.85 for the US. The index takes into account factors including AI software purchases, the use of advanced AI applications and the deployment of AI in core business functions.
Leave a Reply