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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
17-Dec-2025
South Asia, Middle East & North Africa
Customer Research
KB6A-01-00-00-00
IT_2025_34197
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
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