India emerges as world’s largest market for AI and LLM adoption: Bank of America

India has become the world’s most active market for large language model (LLM) usage, driven by a vast internet population, low data costs and a young, digitally fluent user base, according to a new analysis by Bank of America (BofA). The report places India at the top globally for users of popular AI applications, underscoring the country’s growing influence in shaping how generative AI is adopted at scale.

BofA’s analysis shows that India leads worldwide in both monthly and daily active users across leading AI platforms, including conversational and search-based tools. Analysts attribute this momentum to a combination of scale and accessibility, with India hosting the world’s second-largest online population, estimated at over 700 million mobile internet users.

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Affordable data pricing has played a central role in accelerating adoption. Users in India are able to consume large volumes of data at a fraction of global costs, making regular access to advanced AI tools viable for a broad section of the population. This has lowered barriers to entry and encouraged experimentation with AI for everyday tasks.

Demographics are another key driver. More than 60 percent of Indian internet users are under the age of 35, and a significant proportion are English-speaking and open to adopting new technologies. As a result, AI tools are increasingly being used to support learning, enhance productivity and streamline routine work.

The report also highlights the role of telecom operators in pushing AI usage. Companies such as Jio and Bharti Airtel have begun bundling complimentary access to paid AI applications with select plans, a move BofA describes as mutually beneficial for consumers, AI developers and telecom providers. This approach has further widened exposure to advanced AI capabilities.

BofA noted that the availability of AI models in multiple Indian languages is helping reduce linguistic barriers and narrow the digital divide, contributing to what the bank described as the “democratisation of AI.” This multilingual push is enabling users beyond major urban centres to engage with AI-driven tools.

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Looking ahead, the report suggested that India could emerge as a testing ground for the next phase of artificial intelligence, particularly agentic AI systems that can independently plan and execute tasks. Given the country’s diverse and large user base, analysts believe India is well positioned to stress-test such applications in real-world conditions before global rollouts.

The analysis also pointed to potential partnerships between global AI companies and Indian firms, especially in fulfilment and services, drawing parallels with collaborations seen in markets like the United States. Together, these factors position India not just as a major consumer of AI, but as a critical market influencing its future evolution.