Brief
India’s AI investment jumps to $4.1 billion in 2025 but firm adoption lags
World Bank data shows a surge in AI funding but limited use of AI tools by Indian companies.
By Felo News Desk · Published
Private investment in artificial intelligence in India rose to $4.1 billion in 2025, more than three times the $1.2 billion recorded in 2024, according to a World Bank survey released on Tuesday.
The same survey found that just 23.4% of Indian firms reported using AI, compared with 42.7% of U.S. firms. When measured by paid AI software or subscriptions, the gap widens: 3.5% of Indian companies versus 23.1% in the United States.
The World Bank’s October India Development Update also raised the country’s FY27 growth forecast to 7.1% and highlighted AI as a potential productivity driver, while warning that skills, infrastructure and other barriers could curb adoption.
India’s AI Adoption Index scored 0.27, well below the U.S. score of 0.85, reflecting lower AI software purchases, advanced‑application use and core‑function deployment.
Key facts
- Private AI investment in India reached $4.1 billion in 2025, up from $1.2 billion in 2024. (newindianexpress.com)
- 23.4% of Indian firms reported using AI, versus 42.7% of U.S. firms. (newindianexpress.com)
- Only 3.5% of Indian firms pay for AI software, compared with 23.1% of U.S. firms. (newindianexpress.com)
- World Bank’s AI Adoption Index gave India a score of 0.27 against the U.S. 0.85. (newindianexpress.com)
Sources
- [1] newindianexpress.com — originally reported as “AI investment surges in India, but adoption stays low”
