Information Technology The State of Artificial Intelligence (AI) in India, 2025

Highlights and Growth Opportunities from a 2025 Frost & Sullivan Survey of IT and Business Decision-Makers


RELEASE DATE
17-Dec-2025
REGION
South Asia, Middle East & North Africa
DELIVERABLE TYPE
Customer Research

RESEARCH CODE
KB6A-01-00-00-00
SKU
IT_2025_34197
Yes
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The State of Artificial Intelligence (AI) in India, 2025
Published on: 17-Dec-2025 | SKU: IT_2025_34197

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Artificial intelligence (AI) is rapidly reshaping the priorities and operations of Indian enterprises. This Frost & Sullivan report provides a comprehensive analysis of AI adoption and deployment, drawing on survey data from IT and business decision makers across a range of industries. The analysis examines the current state of AI implementation in India, identifying key drivers such as operational efficiency, customer experience, and data-centric decision making.

The report explores how organizations are moving beyond initial experimentation and transitioning to full-scale execution, paying particular attention to the emergence of agentic AI and the growing preference for hybrid cloud infrastructure. It reviews procurement strategies—including the roles of large technology vendors, IT integrators, start-ups, and in-house development—and addresses regulatory developments, talent availability, and organizational challenges that influence AI adoption. Sector-specific trends are discussed, with insights into healthcare, retail, financial services, and other verticals.

Readers will gain an understanding of the strategic enablers and barriers shaping AI growth in India, as well as the evolving priorities of enterprise stakeholders. The findings are intended to inform technology leaders, investors, and policymakers seeking to navigate the complexities of AI integration in the Indian market.

Author: Karyn Price

Research Objectives and Methodology

Research Objectives and Methodology

Respondent Profile, AI, India, 2025

Key Findings

Enterprises Recognize the Importance of AI/ML in Achieving Business Priorities

Enterprise AI Deployments in a Transition Phase in India

Improving Operational Efficiency is a Key Driver for AI Investments

AI Deployments Prioritized in Core Operational Areas

Emerging Use Cases

NLP is the Top Tech Investment Priority for Indian Enterprises

Predictive Analytics and Facial Recognition Lead AI Application Use Cases

Indian Enterprises Prefer Hybrid Cloud as Digital Infrastructure Model for AI Deployments

Hybrid Cloud is the Preferred Digital Infrastructure Model for AI Deployments

Regulatory Uncertainty and Talent are the Top Barriers to AI Implementation in India

The Regulatory Landscape Continues to Evolve

Agentic AI Disruptive to Indian Technology Landscape

Agentic AI Adoption Still in Early Stages

How Indian Enterprises Plan to Deploy Agentic AI

Third-Party Service Providers Play a Key Role

Preferred AI/ML Implementation Platform by Enterprise

Key Obstacles to Scaling Agentic AI in India

Business Stakeholders Play a Significant Role in AI Adoption

Indian Enterprises Prioritize Quality and Trust in AI Adoption

Procurement Trends Show a Mix of Established Vendors and Emerging Innovators

Expansion of AI in India Through Comprehensive IT and Advisory Services

Growth Opportunities Fuel the Growth Pipeline Engine™

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

Benefits and Impacts of Growth Opportunities

Next Steps

List of Exhibits

Legal Disclaimer


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Artificial intelligence (AI) is rapidly reshaping the priorities and operations of Indian enterprises. This Frost & Sullivan report provides a comprehensive analysis of AI adoption and deployment, drawing on survey data from IT and business decision makers across a range of industries. The analysis examines the current state of AI implementation in India, identifying key drivers such as operational efficiency, customer experience, and data-centric decision making.

The report explores how organizations are moving beyond initial experimentation and transitioning to full-scale execution, paying particular attention to the emergence of agentic AI and the growing preference for hybrid cloud infrastructure. It reviews procurement strategies—including the roles of large technology vendors, IT integrators, start-ups, and in-house development—and addresses regulatory developments, talent availability, and organizational challenges that influence AI adoption. Sector-specific trends are discussed, with insights into healthcare, retail, financial services, and other verticals.

Readers will gain an understanding of the strategic enablers and barriers shaping AI growth in India, as well as the evolving priorities of enterprise stakeholders. The findings are intended to inform technology leaders, investors, and policymakers seeking to navigate the complexities of AI integration in the Indian market.

Author: Karyn Price
More Information
Deliverable Type Customer Research
Industries Information Technology
No Index No
Is Prebook No
Keyword 1 AI market India
Keyword 2 artificial intelligence industry India
Keyword 3 enterprise AI adoption
Podcast No
Predecessor None
WIP Number KB6A-01-00-00-00

The State of Artificial Intelligence (AI) in India, 2025

$4,950.00
In stock
SKU
IT_2025_34197