India emerges as world’s largest market for AI and LLM adoption: BofA

India has become the world’s largest and most active market for AI and large language model adoption, Bank of America said. Low data costs, a young English-speaking population and telecom-led AI subscriptions are accelerating usage and positioning India as a testing ground for agentic AI.

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

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

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BofA said India’s rapid rise as a key AI market is driven by a combination of scale, affordability and demographics.

India has the second-largest online population in the world, with more than 700–750 million mobile internet users.

Affordable data plans have made AI access easier, with users able to consume 20–30 GB of data a month at around $2.

In addition, more than 60 per cent of Indian internet users are under the age of 35, and a large part of this population is English-speaking and quick to adopt new technologies.

AI adoption in India is also getting a push from telecom companies. BofA noted that telcos such as Jio and Bharti Airtel are offering complimentary subscriptions to paid versions of AI apps like Gemini and Perplexity.

This, according to the report, is creating a win-win situation for users, AI companies and telecom operators.

For consumers, access to advanced AI tools at a low cost is helping create a level playing field.

Indian users are using these tools to improve learning outcomes and boost productivity.

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

The report also highlighted that India could emerge as a testing ground for the next phase of AI, known as agentic AI.

These are AI applications that can reason, plan and execute tasks independently. Given India’s massive and diverse user base, BofA believes the country is well suited to stress-test such applications in real-world conditions before they are rolled out globally.

It also suggested that global AI companies could partner with Indian firms for fulfilment services, similar to how AI agents in the US have tied up with travel platforms like Booking and Expedia.