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

Publisher Frost & Sullivan
Published Dec 18, 2025
Length 42 Pages
SKU # MC20678794

Description

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.

Table of Contents

42 Pages
    • 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

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