Information and communication technology or ICT, as we popularly call it, has made a massive headway and has become inseparable part of modern human life. Like it or not modern human beings cannot spend a day without ICT. It has made us lazy so much so that we now look to it for making decisions. That's right … making decisions – learn from data, recognize patterns and make decisions. And that's nothing, but what we know as AI or Artificial Intelligence. Intelligence that is created artificially, a man-made phenomenon.
What is AI?
AI is not human-like robots, unlike popular perception. It is a novel form of software having unique capabilities and characteristics such as autonomous thinking capacity, the ability to learn from data, carrying out data-driven decision-making, and even potentially talk, see, listen, and move. Just like every software needs periodic upgrading, it is also essential that AI is trained at a regular interval to make sure that it stays relevant and accurate [1].
In its broadest form, AI represents a combination of both software and hardware, where software provides the intelligence through algorithms and data, and hardware provides the computational power to process that data and run the algorithms efficiently. It basically refers to computer systems that are capable of carrying out tasks which typically were meant to engage human intelligence.
The key focus of AI is on creation of algorithms and software that are supposed to help machines learn from data, identify patterns, yield decisions, and even forecast outcomes with outstanding precision. AI is so designed as to make work easier through the automation of repetitive tasks, expedite processes and procedures, improve decision-making by reinforcing it with analysis of relevant data, and augmenting creativity through efficient management of various handling aspects of routine jobs. This allows human resources to be channelized towards carrying out higher-level, strategic work, while machines take care of mundane tasks. The obvious outcomes are higher efficiency, better productivity, and superior levels of innovation across multiple industries.
World Wide AI Adoption
November 2020 saw the launch of ChatGPT - world's first publicly available large-language model (LLM) AI application. An LLM AI application is a system which employs a machine learning (ML) model that is trained using a colossal volume of text which helps it understand and create human-like language. These applications are capable of summarizing information, addressing queries, translating languages, creating text for reports or emails, and even write computer code, which makes them beneficial to employ across numerous industries for work automation and for content creation. Large language models are a subset of generative AI that focus primarily on language-related tasks such as understanding text inputs (using natural language processing) and based on that given input generating human-like text [2]. Generative AI generates new images, texts, audios, videos, and other content on the basis of the gigantic volume of data that was used to train the generative model.
Within a span of just 5 days, ChatGPT gained more than a million users [3]. A couple of years hence, the number of active ChatGPT users stood at 200 million constituting over 2% of the world population. According to the figures reported by OpenAI, the business entity at the rear of ChatGPT, at present an overwhelming 92% of Fortune 500 companies have started employing the company's generative LLM products. [4]
There has been a significant surge in worldwide AI adoption. 2025 is witnessing a substantial climb in the number of users and this momentous growth is expected to continue. Driven by the growing interest in generative AI, majority of the forerunners in AI adoption are moving much further ahead of repetitive and mundane tasks to enhance revenue and improve productivity. In most regions across the world, adoption of AI is growing with the U.S. leading in number of AI users and in AI investment. The emerging economies too are exhibiting rapid growth in various areas, including AI skills in India.
Adoption by Corporates
Figure 1: Organizations are using AI in more business functions [5]
According to McKinsey report "The state of AI" published in March 2025 based on a latest survey by the organization, the documented use of AI increased in 2024. In the survey, 78% of the survey respondents confirm that their organizations use AI in one or more business functions, higher than the 72% reported in early 2024 and 55% reported a year before that (Figure 1). The ICT, sales and marketing functions are the areas that show widest adoption of the AI technology as reported by the respondents, while service operations come next in line. "The business function that saw the largest increase in AI use in the past six months is IT, where the share of respondents reporting AI use jumped from 27% to 36%" [5].
Figure 2: Sudden Surge in Use of AI by Organizations (Source: Mc Kinsey & Co.)
India's AI Adoption
India's corporate and startup sectors are embracing AI like never before. Boston Consulting Group's (BCG) recent report shows that India is leading AI workforce adoption, with 92% of domestic employees using generative AI tools daily in their professional tasks-the highest rate globally. It is far ahead of global tech giants such as the U.S (68%), China (64%), and Germany (52%). The country is also among the top 3 nations experimenting with AI agents. 17% of Indian employees report Ai-integration into their workflows.
Figure 3: AI Adoption by Indian Workforce (Source: EFL Research, BCG, Economic Times)
India is positioning itself firmly in the forefront of global AI revolution, with an astounding 92% of its workforce employing generative AI tools regularly at work. The statistics was revealed by one of BCG's recent surveys that covered more than 10,600 workers spread over 11 countries. It is considerably above the global average of 72% and underscores the the swift transition that is ensuing from the faster integration of AI into the daily work activities carried on by the Indians.
The outcomes of the survey indicate a massive transition in our domestic workplace. It is evident that not only the businesses but also the employees are enthusiastic about embracing AI, despite the need for navigating various extreme implications related to the future of work and workplace. This high adoption rate has positioned India, at the same level as the Middle East (87%), as a leader in GenAI usage, specifically within the Global South. The statistics do not just highlight the swiftness in embracing and using a novel technology or a new tool but also bear testimony to a technology integration that runs much deeper than it appears. It is reflected in India's ranking among the top 3 nations from the perspective of "incorporating AI agents into workflows, with 17% of employees reporting such usage" [6].
This extensive adoption of generative AI across India is fuelled by a robust confidence in the technology's potential towards augmenting productivity and enhancing the quality of life. According to a recent study published by the Indian Institute of Management (IIM), Ahmedabad, the majority of the Indian workforce recognizes the importance of AI. A whopping 72% acknowledge that AI betters their performance at work, while 59% are of the opinion that AI extensively complements their work. 62% of respondents admitted using AI tools outside their work requirements [7].
Other surveys reinforce this trend. One study revealed that nearly the entire domestic work force (95% of domestic employees) believes that AI is capable of improving their quality of life, and about 90% reported higher efficiency and productivity levels. Such optimism has been instrumental in inducing employees to actively integrate AI for automating their tasks, streamlining their communication, and improving the complete process of decision-making.
Presently, AI and ML based start-ups in the US are attracting 65% of the total venture capital investment in the country [8]. Nearly every LLM company is raising billions of dollars in new capital. Even corporate capex is skewed in favour of technology in general and AI in particular.
As suggested by an EY report, the perceived benefits of AI adoption are significantly large. For corporate workers, Generative AI or GenAI has the capacity to free up almost 8-10 hours on a weekly basis through complete automation of just 24% of the tasks and partial automation of another 42%. That's a significant reduction in the time spent on mundane tasks. This is expected to translates to a 2.61% productivity boost by 2030, which is equivalent to 6 years of growth and can make a lot of difference for the country's 38 million strong workforce [9].
Similar kind of enthusiasm has spread to the C-suite, with an elevated percentage of leaders campaigning in favour of adopting the technology. However, the BCG report observes that presently, a smaller group of companies is actually being able to unlock the technology's true value by transitioning beyond simply deploying the tool to essentially re-engineering their businesses processes and workflows [6].
AI a GDP Growth Driver???
NITI Aayog believes that AI can contribute in achieving 8% GDP growth target. According to NITI AAYOG (erstwhile Planning Commission) report, the three key forces pushing the AI-driven growth -
- Enhancement of productivity across industries (30-35% of the GDP gap),
- Transformation of research and development using generative AI (20-30%) and
- Strengthening the country's technology services sector (15-20%) [10].
According to a report released by NITI Aayog around mid-September 2025, the AI-based opportunities are anticipated to contribute around $1 - $1.4 trillion towards the achievement of its "Viksit Bharat" goal while at the same time contributing towards reaching the country's annual GDP growth target of 8%. The report titled ‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth' pointed out that under the aspirational 8% growth trajectory delineated in "the government's vision for the nation known as Viksit Bharat, India's GDP could increase to $8.3 trillion by 2035" [10]. That's massive!
The Big Concern
Workers with AI skills like prompt engineering get 56% higher wage reflecting 25% YoY growth. However, this rapid adoption brings with it new challenges. 48% of Indian workforce fears job displacement over the next 10 years, highlighting a growing sense of uncertainty. Also, there is dearth of proper training as well. Hence skill upgradation is slow which means the adoption is still slow. Also, only 25% of frontline workers admit that their leaders provide adequate guidance on AI adoption. The potential for growth, therefore, is huge provided adequate skill levels are available and there is strong leadership support.
Over 75% of the leaders and managers admit using generative AI (GenAI) several times a week. However, percentage of frontline employees making such regular use of the technology has frozen at 51% [11]. This gap comes at a critical juncture of AI development. Companies have come to realize that simply introducing AI tools into prevailing system of operation is not enough to unlock their true and complete potential. The true potential of AI application in business processes is realized when businesses go the extra mile to restructure their workflows end-to-end and bring in transformation through extensive integration [12]. 50% of the business organizations are moving beyond just deployment that simply pushes productivity. They now target reshaping the business. The shift is being led by companies in financial services and technology segment [13].
Despite being the global leader in AI adoption, India is grappling with acceptance among employees – a key aspect for successful integration of technology within the business and the work culture of any company. Several employees across industries are afraid of losing their jobs to an AI counterpart. There is significant and urgent need for upskilling too. Nevertheless, the rates of technology adoption are unprecedented and there is significant optimism. But the undercurrent of anxiety continues to flow subtly through the domestic workforce.
The BCG study that pointed out 92% usage rate also revealed that 48% of Indian employees are afraid that in the next 10 years they could be displaced by an AI counterpart. Such insecurity and degree of concern are amongst the highest in the world, surpassing the global average of 41%.
This creates a paradox - the regions exhibiting highest AI use are also exhibiting deepest concerns about and reservations against automation. What is more concerning is that these apprehensions are not baseless. Certain assessments foresee adverse impact of AI on numerous jobs in India. As predicted by an EY report, GenAI has the potential to transform 38 million jobs in the country by 2030 [9]. This fear keeps compounding due to the existing prominent skills gaps and the lag in disciplines that could train the young minds in this sophisticated modern technology or train the workforce in place who are expected to accept the technology and successfully implement it.
Just one in every three Indian employees feels that he / she is sufficiently trained to channel and utilize the complete potential of the technology. Several would acknowledge using AI tools without any formal consent, which further complicates matter as it creates security concerns for the corporate employers – putting a vast amount of data at risk.
AI adoption is also creating dependency and is leading to low-skill development. A KPMG survey report points out that Indians are becoming overly dependent on AI, with 67% of Indian respondents saying that they are unable to complete their work without AI assistance while 71% admitted to employing the tools instead of picking up the essential skills for the jobs or learning the tasks themselves. 76% of Indians are willing to trust AI [14]. This creates the impending risk of complacency, low skill development and a steady decline in critical thinking.
The Last Words
Digital infrastructure, private investment, and ICT skills are some of the major factors that are driving AI adoption, while significant unemployment levels and regulatory compliance pose substantial challenges. While the adoption is the highest in the world the scare and insecurity amongst the workforce are also way above the world average. Technology, while improving accessibility and effectiveness is making AI a transformative force in the country; but is also setting the floor for the growth of low-skilled workforce, rather a workforce which is gradually losing the will to up-skill, develop and progress. Losing critical thinking power could be dangerous in the long run and will, without a doubt, create an inefficient workforce. Technology must become one of the tools for progress but can never replace human effort at it.
References
[1] Software Improvement Group, "Is AI software?," 31 Jab 2025. [Online]. Available: https://www.softwareimprovementgroup.com/is-ai-software/. [Accessed 18 Sep 2025].
Appian, "Generative AI vs. Large Language Models (LLMs): What's the Difference?," 19 Sep 2024. [Online]. Available: https://appian.com/blog/acp/process-automation/generative-ai-vs-large-language-models. [Accessed 22 Sep 2025].
[3] K. Vaghasiya, "The Latest ChatGPT Statistics and User Trends (2022-2025)," 2025. [Online]. Available: https://wisernotify.com/blog/chatgpt-users/. [Accessed 18 Sep 2025].
[4] I. Fried, "OpenAI says ChatGPT usage has doubled since last year: AXIOS," 29 Aug 2024. [Online]. Available: https://www.axios.com/2024/08/29/openai-chatgpt-200-million-weekly-active-users. [Accessed 18 Sep 2025].
[5] McKinsey, "The state of AI: How organizations are rewiring to capture value," Quantum Black AI, 12 Mar 2025.
[6] AI Tech Suite, "India Leads Global AI Adoption: 92% Use Tools, Job Fears Rise," 07 Jun 2025. [Online]. Available: https://www.aitechsuite.com/ai-news/india-leads-global-ai-adoption-92-use-tools-job-fears-rise#source-3. [Accessed 23 Sep 2025].
[7] P. Chakrabarti, D. Ghatak, P. Moses, D. N. Mukherjee, P. Sinha and A. Todkar, "Labour-force Perception about AI: A Study on Indian White-collar Workers:," Brij Disa Centre for Data Science and Artificial Intelligence - IIM Ahmedabad, Ahmedabad, Gujarat, India, 2024.
[8] A. Prakash, "AI is at an extreme: Market cap, returns, capex surpass tech-bubble highs: Economic Times," 22 Sep 2025. [Online]. Available: https://www.business-standard.com/opinion/columns/ai-is-at-an-extreme-market-cap-returns-capex-surpass-tech-bubble-highs-125092201355_1.html. [Accessed 24 Sep 2025].
[9] R. Gupta and N. Sharma, "How much productivity can GenAI unlock in India?: The AIdea of India 2025," EY India, 2025.
[10] T. N. Service, "AI can contribute in achieving 8% GDP growth target: NITI Aayog," 16 Sep 2025. [Online]. Available: https://www.tribuneindia.com/news/india/ai-can-contribute-in-achieving-8-gdp-growth-target-niti-aayog/#google_vignette. [Accessed 17 Sep 2025].
[11] J. Apotheker, S. Duranton, V. Lukic, N. d. Bellefonds, S. Iyer, O. Bouffault and R. d. Laubier, "From Potential to Profit: Closing the AI Impact Gap," BCG AI Radar, 15 Jan 2025.
[12] N. d. Bellefonds, T. Charanya, M. R. Franke, J. Apotheker, P. Forth, M. Grebe, A. Luther, R. d. Laubier, V. Lukic, M. Martin, C. Nopp and J. Sassine, "Where's the Value in AI?," BCG: Artificial Intelligence, 24 Oct 2024.
[13] V. Beauchene, S. Duranton, N. Kalra and D. Martin, "AI at Work: Momentum Builds, But Gap Remains," Boston Consulting Group (BCG), 2025.
[14] Tech Desk: The Indian Express, "76% Indian employees willing to trust AI, 90% report increased efficiency: KPMG study," 06 May 2025. [Online]. Available: https://indianexpress.com/article/technology/artificial-intelligence/76-indian-employees-willing-to-trust-ai-90-report-increased-efficiency-kpmg-study-9985779/. [Accessed 24 Sep 2025].
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