- KR Bharat
- 2025-12-18
India has emerged as the world’s largest and most active market for artificial intelligence (AI) and large language model (LLM) adoption, according to a new analysis by Bank of America (BofA).
The report said India now leads globally in user numbers for popular AI platforms such as ChatGPT, Gemini and Perplexity, both in terms of monthly active users (MAUs) and daily active users (DAUs). BofA attributed this rapid rise to a unique combination of scale, affordability and favourable demographics.
India has the second-largest online population in the world, with an estimated 700–750 million mobile internet users. Ultra-low data costs have further accelerated AI usage, with consumers able to access 20–30 GB of data per month at an average cost of around $2.
Demographics have also played a crucial role. More than 60 per cent of India’s internet users are under the age of 35, and a significant proportion of them are English-speaking and quick to adopt emerging technologies.
Telecom-led distribution has provided an additional boost to AI adoption. BofA noted that telecom operators such as Reliance Jio and Bharti Airtel are offering complimentary subscriptions to premium AI services, including Gemini and Perplexity, creating what it described as a win-win situation for consumers, AI companies and telcos.
For users, low-cost access to advanced AI tools is improving learning outcomes and productivity while helping level the digital playing field. The availability of AI models in multiple Indian languages is also narrowing language barriers and contributing to the democratisation of AI across the country.
The report further highlighted India’s potential role as a global testing ground for the next phase of artificial intelligence — agentic AI. These systems are capable of reasoning, planning and independently executing tasks. Given India’s massive and diverse user base, BofA said the country is well positioned to stress-test such applications in real-world conditions before their global rollout.
BofA also suggested that global AI companies could partner with Indian firms for fulfilment and service integration, similar to how AI agents in the United States have tied up with platforms such as Booking and Expedia.
