A new report highlights a mixed picture of India’s artificial intelligence growth, showing strong adoption alongside a growing divide in access. According to OpenAI, India is now one of the top 5 global markets for advanced AI usage, especially in coding, data analysis, and complex reasoning.
In its first “Capability Gap” report focused on India, OpenAI noted that while the country’s AI ecosystem is expanding rapidly, the benefits are largely concentrated in a few major cities. “India ranks among the world’s most advanced AI markets, particularly in coding, data analysis, and complex reasoning,” the company said.
The report shows a sharp rise in developer activity. Usage of OpenAI’s Codex tools increased 4 times within 2 weeks of its February 2026 launch, reflecting growing interest in AI-powered development.
However, adoption remains uneven. The top 10 cities account for nearly half of all AI users, despite representing less than 10% of the population. This makes AI usage about 3 times more concentrated in India compared to countries like the US, UK, Brazil, and Germany. Delhi-NCR leads in ChatGPT penetration, followed by Bengaluru, Hyderabad, and Chennai.
The gap is wider in advanced use cases. Data analysis usage is up to 30 times higher in leading cities, while coding usage is 4 times higher. Developer tool usage shows a 9 times difference between top cities and other regions.
“The central question now is how quickly the benefits of AI can extend beyond early adopters and leading cities to the wider population,” said Oliver Jay. “Closing this gap will require expanding access, building skills, and enabling more meaningful use across the country.”
Beyond metro cities, new use cases are emerging. States like Assam, Odisha, Manipur, Tripura, and Chhattisgarh show strong use of AI in education. Meanwhile, Jammu and Kashmir, Punjab, Himachal Pradesh, and Kerala are seeing higher usage in health and wellness.
“The capability gap is not just between countries — it exists within them,” OpenAI noted. The company added that future growth will depend on improving access through language, affordability, and infrastructure.
To support this, OpenAI is expanding partnerships in India, including with TCS, Razorpay, and universities through ChatGPT Edu initiatives.
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