Industries
August 18, 2025

India accelerates AI adoption but faces skills and infrastructure gaps

India leads APAC in AI adoption with 4% of organizations ahead, but 32% lag. GenAI funding rises; sectors like banking, manufacturing, energy adopt it. Skills shortage and IT cost remain challenges.

A Dell Technologies and NVIDIA–commissioned IDC study, Creating Your AI Implementation Blueprint (January 2025), finds India emerging as a frontrunner in Asia-Pacific AI adoption, with 4% of organizations advancing rapidly while 32% remain in early phases.

GenAI spending is surging: 84% of regional firms plan to invest $1–2 million in such projects. Key sectors, banking (84% AI, 67% GenAI), manufacturing (78% AI, 54% GenAI), and energy (83% AI, 73% GenAI) are deploying use cases like fraud detection, predictive maintenance, and grid optimization.

However, over 72% report critical shortages in AI/data skills, and many rely on external vendors for implementation.

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