Is India the Largest Market in the World for AI Model Adoption?
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Synopsis
India is making waves in the AI sector, leading the world in large language model adoption. With a vast, young population and affordable technology, the country is set to redefine AI accessibility. This article explores the factors driving India's rise in the AI landscape and its potential as a testing ground for advanced AI applications.
Key Takeaways
- India is the world's leading market for large language model adoption.
- Affordable data plans facilitate broad access to AI applications.
- Over 60% of internet users in India are under 35 years old.
- Telecom companies are instrumental in promoting AI accessibility.
- India is poised to be a testing ground for advanced AI applications.
New Delhi, Dec 17 (NationPress) India has ascended to become the largest and most vibrant market globally for the adoption of large language models (LLMs), as per a recent evaluation by Bank of America (BofA).
The nation is now at the forefront worldwide regarding the user base for widely-used AI applications like ChatGPT, Gemini, and Perplexity, leading in both monthly and daily active users.
BofA attributes India's swift emergence as a crucial AI marketplace to a mix of scale, affordability, and demographics.
India boasts the second-largest online populace globally, with around 700–750 million mobile internet users.
Reasonably priced data packages have facilitated easier access to AI, allowing users to consume between 20–30 GB of data monthly for approximately $2.
Moreover, over 60% of Indian internet users are under 35, with a significant portion being English-speaking and quick to embrace new technologies.
The push for AI adoption in India is also supported by telecom firms. BofA highlighted that telecom providers like Jio and Bharti Airtel are giving free trials for premium versions of AI applications such as Gemini and Perplexity.
This, as per the report, creates a beneficial scenario for users, AI companies, and telecom operators.
For consumers, affordable access to advanced AI tools is fostering a more equitable environment.
Indian users are utilizing these tools to enhance educational outcomes and improve productivity.
The availability of AI models in various Indian languages is also instrumental in bridging the digital gap and overcoming language obstacles, contributing to what BofA refers to as the democratization of AI.
The report further emphasizes that India could serve as a testing platform for the next generation of AI, termed agentic AI.
These applications are capable of reasoning, planning, and executing tasks autonomously. Given India's vast and diverse user demographic, BofA believes the country is ideally positioned to stress-test such applications in real-world scenarios before their global rollout.
It also recommends that international AI companies consider collaboration with Indian firms for fulfillment services, similar to the partnerships seen in the US with travel platforms like Booking and Expedia.
Point of View
I view India's position as the largest market for AI model adoption as a significant milestone. This growth not only demonstrates the country's technological potential but also highlights the importance of democratizing access to AI. As we navigate this digital transformation, it is crucial to ensure that all sections of society reap the benefits of technological advancements.
NationPress
18/12/2025
Frequently Asked Questions
What is driving AI adoption in India?
India's AI adoption is fueled by its large online population, affordable data plans, and a young demographic eager to embrace technology.
How many mobile internet users does India have?
India has approximately 700 to 750 million mobile internet users, making it the second-largest online population in the world.
What role do telecom companies play in AI accessibility?
Telecom companies like Jio and Bharti Airtel are offering free subscriptions to premium AI applications, enhancing user access to advanced AI tools.
Why is AI important for India's future?
AI has the potential to improve learning outcomes, boost productivity, and bridge the digital divide, making it a critical component for India's future growth.
What is agentic AI?
Agentic AI refers to applications that can reason, plan, and execute tasks autonomously, representing the next phase of AI development.
