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India ranks 64th globally in AI adoption, Microsoft study highlights key trends

India saw a small rise in the use of artificial intelligence in the second half of 2025, but it still trails behind several major economies, including China, Brazil, Germany, Japan, and the United States, according to a new study by a global technology company research unit.

The report, titled AI Diffusion Report 2025, shows that AI use in India rose by 1.4 per cent to 15.7 per cent in the second half of the year, up from 14.2 per cent in the first half. Globally, AI adoption increased by 1.2 per cent to 16.3 per cent, meaning nearly one in six people worldwide now use generative AI tools.

The United Arab Emirates and Singapore topped the global rankings, followed by countries such as Norway, Ireland, France, and Spain. Despite having a population of over 1.45 billion, India ranked 64th. This comes even as India is seen as a major growth market for leading AI firms. The country is also the second largest smartphone market, with around 730 million devices. On average, users consume 21 gigabytes of data per month at one of the lowest global rates, according to a news agency report.

The study also highlights a growing gap between regions. AI adoption in the Global North is rising almost twice as fast as in the Global South. About 24.7 per cent of the working age population in the Global North now uses AI tools, compared to 14.1 per cent in the Global South.

“When looking at the economies driving the fastest gains, the imbalance becomes even clearer. Of the ten countries with the largest increases in AI adoption share, all are high income economies,” the report said.

“Taken together, the data shows a world embracing AI at remarkable speed, even as the divide between leading and lagging regions grows. The challenge ahead is ensuring that this next wave of innovation benefits more people, in more places, and not fewer,” it added.

The study found that countries that invested early in digital infrastructure, AI skills, and government adoption continue to lead. More than 64 per cent of the UAE working age population now uses AI, followed by Singapore at 60.9 per cent.

It also noted that innovation alone does not guarantee widespread use. The United States, despite leading in AI development, dropped one position to 24th place.

South Korea saw a major jump in adoption, moving from 25th to 18th, driven by national policies, better language support, and popular consumer features. The report also linked the rise to the viral trend of AI generated Ghibli style images.

Meanwhile, the Chinese startup DeepSeek gained strong traction in developing nations, especially across Africa, due to its open source approach and free access model.

The report measures AI diffusion as the share of people who used a generative AI product during the period, using anonymised data adjusted for population and device access.

Also read: Viksit Workforce for a Viksit Bharat

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