India now world's largest market for AI model adoption
What's the story
India has been recognized as the world's largest and most active market for large language model (LLM) adoption, a recent analysis by Bank of America (BofA) revealed. The country leads globally in user base for popular AI applications such as OpenAI's ChatGPT, Google's Gemini, and Perplexity. The rapid growth is attributed to factors like scale, affordability, and demographics.
Digital access
India's online population and affordable data plans
India has the world's second-largest online population, with over 700-750 million mobile internet users. The availability of affordable data plans has made AI access easier for these users, allowing them to consume 20-30GB of data a month at around $2. This affordability is one of the key factors driving India's rapid adoption of AI technologies.
Demographic advantage
Young demographic and tech-savvy population
More than 60% of Indian internet users are below 35 years of age. A large part of this demographic is English-speaking and quick to adopt new technologies. This young, tech-savvy population is another major factor behind India's rapid adoption of AI models like ChatGPT, Gemini, and Perplexity.
Industry influence
Telecom companies' role in AI adoption
Telecom giants like Jio and Bharti Airtel are also contributing to the rise of AI in India. They are offering free subscriptions to paid versions of popular AI apps such as Gemini and Perplexity. This strategy is creating a win-win situation for users, AI companies, and telecom operators alike by providing affordable access to advanced AI tools for Indian consumers.
Language accessibility
AI models in regional languages bridging digital divide
The availability of AI models in multiple Indian languages is helping bridge the digital divide and reduce language barriers. This trend is leading to what BofA described as the democratization of AI. The report also highlighted that India could emerge as a testing ground for the next phase of AI, known as agentic AI, due to its massive and diverse user base.