India Emerges as World’s Largest Market for AI Model Adoption: BofA

New Delhi - India has emerged as the world’s largest and most active market for the adoption of large language models (LLMs), according to an analysis released by Bank of America (BofA) on Wednesday.

The country now leads globally in user numbers for popular AI applications such as ChatGPT, Gemini and Perplexity, both in terms of monthly active users (MAUs) and daily active users (DAUs).

BofA attributed India’s rapid rise as a major AI market to a combination of scale, affordability and favourable demographics. India has the second-largest online population in the world, with an estimated 700–750 million mobile internet users.

Affordable data pricing has significantly lowered barriers to AI usage, with users able to consume 20–30 GB of data per month for around $2. In addition, over 60 per cent of India’s internet users are under the age of 35, with a large proportion being English-speaking and quick to adopt new technologies.

AI adoption in the country is also being supported by telecom operators. BofA noted that companies such as Reliance Jio and Bharti Airtel are offering complimentary subscriptions to premium AI applications, including Gemini and Perplexity.

According to the report, this has created a win-win situation for consumers, AI companies and telecom providers. Users gain access to advanced AI tools at low or no cost, helping improve learning outcomes and productivity.

The growing availability of AI models in multiple Indian languages is further helping bridge the digital divide and reduce language barriers, leading to what BofA described as the democratisation of AI.

The report also highlighted India’s potential role as a testing ground for the next phase of artificial intelligence, known as agentic AI — applications capable of reasoning, planning and independently executing tasks. Given India’s vast and diverse user base, BofA believes the country is well positioned to stress-test such technologies in real-world conditions before their global rollout.

It added that global AI companies could also partner with Indian firms for fulfilment services, similar to how AI agents in the US have integrated with platforms such as Booking and Expedia.

—With inputs from IANS