Artificial intelligence is moving rapidly from experimentation to business adoption in India. PwC’s 2026 India CEO Survey found that 66% of India CEOs are concerned about keeping pace with technology and AI, compared with 42% globally. At the same time, 37% said their organisations apply AI to demand generation to at least a moderate extent.
How Are Businesses Using AI in India?
Indian businesses are using AI across marketing, sales, customer experience, data analysis, software development, operations and decision-making.
Common applications include:
- Content creation
- Marketing and advertising
- Customer service
- Data analysis
- Sales research
- Workflow automation
- Software development
- Personalisation
- Business research
- Predictive analytics
The shift is increasingly from using AI as an individual productivity tool to integrating it into business processes.
How Much Are Indian Businesses Using AI?
There is no single figure that represents every Indian business because surveys measure different business populations and definitions of AI adoption.
PwC’s 2026 India CEO Survey found that 37% of India CEOs reported applying AI to demand generation to a moderate or large extent, while 36% reported using AI in products, services and experiences to at least a moderate extent.
A separate 2025 survey of Indian small businesses found that the share investing in AI increased from 26% in 2024 to 36% in 2025, while 41% of businesses reported seeking advice from AI tools.
These figures should not be treated as one national adoption rate because the studies cover different business groups.
Which Indian Businesses Are Using AI?
AI adoption is particularly relevant to technology-intensive and data-heavy sectors.
| Industry | Common AI Applications |
|---|---|
| IT & Software | Coding, testing, analytics |
| BFSI | Risk, fraud detection, customer service |
| E-commerce | Recommendations, support, personalisation |
| Marketing | Content, advertising, analytics |
| Healthcare | Research, administration, diagnostics |
| Manufacturing | Automation, predictive maintenance |
| Education | Personalised learning, content |
| Agriculture | Analytics, forecasting |
| Media | Content creation and personalisation |
| Real Estate | Lead qualification and marketing |
PwC India has identified agriculture, education, energy, healthcare and manufacturing as five sectors where AI could have significant economic impact, with its 2026 modelling estimating potential contribution of nearly $550 billion by 2035.
How Are Indian Businesses Using AI for Marketing?
Marketing is one of the most practical applications of AI.
Businesses can use AI to:
- Research customers
- Analyse competitors
- Generate ad copy
- Create campaign concepts
- Analyse advertising data
- Create social media content
- Personalise customer communication
- Analyse reviews
- Qualify leads
- Automate follow-ups
For performance marketers, AI can support:
Research → Strategy → Creative → Paid Ads → CRO → Analysis
The objective is not simply to create more content. It is to make the marketing process faster and more measurable.
PwC’s 2026 India CEO Survey found that 37% of India CEOs reported applying AI to demand generation to a moderate or large extent.
How Are Indian Businesses Using AI for Customer Service?
AI can help businesses manage repetitive customer interactions while allowing employees to handle more complex requests.
Common applications include:
- AI chatbots
- Customer enquiry handling
- Product recommendations
- Lead qualification
- Conversation summaries
- Automated responses
- Customer sentiment analysis
PwC India research has also highlighted AI’s potential for smarter customer service and greater personalisation, with business decision-makers identifying AI-powered solutions as important for future customer experiences.
How Are Indian Businesses Using AI for Data Analysis?
Data analytics is another important AI application.
Businesses can use AI to analyse:
- Sales performance
- Customer behaviour
- Advertising campaigns
- Financial data
- Inventory
- Customer feedback
- Operational performance
For companies handling large amounts of data, AI can help turn information into faster business insights.
Are Indian Small Businesses Using AI?
Yes.
Indian small businesses are increasingly investing in AI. An IBEF report on 2025 Indian small-business data found that 36% of businesses invested in AI in 2025, compared with 26% in 2024. It also reported that 41% sought advice from AI tools, up from 25% the previous year.
For smaller businesses, AI can be particularly useful because many tools can be adopted without building an internal AI team.
Examples include:
- AI content creation
- Customer support
- Sales research
- Social media
- Advertising
- Document creation
- Data analysis
- Workflow automation
What Are the Most Popular AI Tools for Indian Businesses?
Indian businesses can use many of the same major AI platforms available globally.
- ChatGPT for research, writing, analysis and business tasks
- Google Gemini for research and Google ecosystem workflows
- Claude for writing, analysis and coding
- Microsoft Copilot for Microsoft workflows
- Perplexity for research and AI-powered search
- Canva AI for marketing design
- Midjourney for AI-generated visuals
- Runway for AI video
- Zapier for workflow automation
India is also developing its own AI ecosystem, including local-language and India-focused AI initiatives.
Is India Building Its Own AI Ecosystem?
Yes.
India is investing in AI infrastructure, compute capacity, skills and locally relevant AI systems.
PwC’s 2026 India CEO Survey notes that India is developing sovereign AI capabilities, including 40,000+ GPUs for researchers and startups and foundation models designed around local languages and nuances.
India’s AI development is therefore not limited to adopting international AI products. It also includes building infrastructure and models suited to Indian users and businesses.
Are Indian Businesses Getting Results From AI?
Some are already reporting measurable benefits, although adoption and results vary significantly.
Among India CEOs surveyed by PwC who had applied AI to business functions to at least a moderate extent:
- 32% reported increased revenue
- 27% reported reduced costs
PwC also found that 41% of India CEOs believe their current AI investment is insufficient to achieve their company goals.
This highlights an important distinction:
Using AI ≠ Scaling AI.
A company might use ChatGPT for emails while still having no integrated AI strategy.
What Is Stopping Indian Businesses From Using AI?
AI adoption also comes with challenges.
PwC research identifies several barriers, including:
- Lack of skilled talent
- Integration challenges
- Data availability
- Governance
- Understanding how AI reaches decisions
- Change management
- Responsible AI concerns
A PwC India responsible AI study found that 58% of Indian respondents cited a lack of understanding of how AI arrives at a decision, while 45% cited insufficient data as a roadblock.
This means businesses need more than access to an AI tool. They need the right data, processes, skills and governance.
What Is the Biggest AI Trend in India?
The major shift is from AI experimentation toward AI integration.
The journey looks like:
AI Tools → AI Workflows → AI Integration → AI-Powered Business Processes
For Indian businesses, the next opportunity is not simply using more AI tools. It is connecting AI with existing business systems and measurable objectives.
How Should an Indian Business Start Using AI?
Start with a business problem, not a tool.
Ask:
- What task takes employees the most time?
- Which marketing tasks are repetitive?
- Where are customers waiting for answers?
- What business data is difficult to analyse?
- Which processes require repetitive manual work?
- Where could AI improve productivity?
- How will you measure the result?
Then select an AI solution around that specific problem.
Frequently Asked Questions
How are businesses using AI in India?
Indian businesses are using AI for marketing, customer service, data analysis, software development, automation, personalisation, research and business decision-making.
What percentage of Indian businesses use AI?
There is no single representative percentage for all Indian businesses. Different studies measure different populations. PwC’s 2026 CEO survey, for example, found that 37% of India CEOs reported applying AI to demand generation to a moderate or large extent.
Are Indian small businesses investing in AI?
Yes. A 2025 small-business survey reported that 36% of Indian businesses invested in AI, compared with 26% in 2024.
Which industries use AI in India?
AI is being applied across IT, financial services, e-commerce, healthcare, manufacturing, education, agriculture, marketing and media.
What are the most popular AI tools for Indian businesses?
Common options include ChatGPT, Gemini, Claude, Microsoft Copilot, Perplexity, Canva AI, Midjourney, Runway and Zapier.
Is AI helping Indian businesses increase revenue?
Some businesses are reporting revenue benefits. PwC’s 2026 India CEO Survey found that 32% of India CEOs who had applied AI to business functions to at least a moderate extent reported revenue increases.
Conclusion
AI adoption in India is moving from experimentation toward practical business applications. Companies are using AI for marketing, customer service, analytics, software development, automation and decision-making, while investment in AI infrastructure and skills continues to grow.
For businesses, the opportunity is not simply to use more AI tools. It is to identify where AI can save time, improve customer experience, analyse data or create measurable business value.
For marketers, combining AI, Paid Ads and Conversion Rate Optimization can turn AI from a content-generation tool into part of a measurable customer acquisition system.
Explore Paid Advertising and Conversion Rate Optimization by Farooq Shafi Digitals.
