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India’s generative AI surge

India is emerging as one of the world’s leading adopters of generative artificial intelligence (AI), ranking among the top three global markets alongside the United States and Germany, according to a global research report by Omdia. The study surveyed 2,050 business and technology leaders across 10 countries who influence their organisations’ current and future AI investments. 

The findings indicate that Indian organisations are adopting generative AI at scale and reporting stronger returns than the global average. About 71% of Indian respondents said they have achieved measurable returns on investment from generative AI initiatives, significantly higher than the global average of 61%. Additionally, 42% of Indian organisations are already using generative AI across multiple use cases. 

The report highlights that AI adoption in India spans several technology and business functions, often exceeding global adoption levels. In IT operations, adoption in India stands at 76%, compared with 61% globally, while data analytics adoption is 75%, compared with 57%. Cybersecurity usage is reported at 69% in India against 52% worldwide, and software development stands at 65% compared with 48%. Customer service adoption is 58% in India compared with 48% globally, while sales-related AI usage is at 41% versus 31%.

Generative AI is playing a particularly significant role in India’s technology ecosystem, especially in IT services and software development. Around 77% of Indian organisations use AI tools to generate code, compared with 64% globally, while 76% use AI for code reviews and debugging. In addition, 66% use AI for IT or cybersecurity incident response, and 68% deploy it to configure and optimise infrastructure. 

These capabilities are helping organisations accelerate development cycles, enhance system reliability, and automate routine engineering tasks. As a result, 94% of Indian organisations report improved operational efficiency, 92% report increased innovation, and 86% report improved financial performance.

The report also suggests continued growth in AI investments. Indian enterprises plan to allocate about 28% of their technology budgets to generative AI over the next year, compared with the global average of 22%. Adoption of agentic AI is also gaining momentum, with 66% of Indian organisations either implementing or planning to implement it within the next 12 months.

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