TLDR: A new report reveals India is a frontrunner in AI adoption across Asia-Pacific, driven by government and industry initiatives. However, the nation faces significant hurdles including a critical shortage of AI-skilled talent and inadequate infrastructure, necessitating strategic partnerships and focused upskilling efforts.
India is rapidly emerging as a leader in Artificial Intelligence (AI) adoption within the Asia-Pacific region, according to a recent IDC InfoBrief titled ‘Creating Your AI Implementation Blueprint’. Commissioned by Dell Technologies and NVIDIA, the report, released on August 18, 2025, highlights the proactive approach taken by Indian governments and industries towards AI, Generative AI (GenAI), and Machine Learning (ML).
The study indicates that approximately 4% of Indian organizations are significantly outpacing their regional counterparts in AI and ML adoption, with a notable acceleration observed within the public sector. This rapid expansion underscores India’s commitment to leveraging AI for transformative growth.
Despite this accelerated adoption, the report identifies substantial challenges that could impede further progress. A critical skills gap is a primary concern, with over 72% of enterprises across Asia-Pacific emphasizing the urgent need for stronger data and AI expertise in new hires. This talent shortage is particularly acute in India, where 32% of organizations remain in the early stages of AI/ML implementation due to these very gaps in infrastructure, strategy, and workforce support. Security, compliance, and escalating IT costs also remain significant hurdles for organizations.
Many Indian organizations are turning to external vendors to bridge these internal deficiencies. The report notes that 60% of companies utilize outside developers for AI applications, compared to only 30% building capabilities in-house. This reliance on technology partners extends to readiness assessments, roadmap design, model development, and crucial workforce training.
Industries across India and the broader APAC region are adopting AI at varying speeds. In banking and financial services, 84% of organizations are already employing AI, with 67% deploying GenAI for applications like fraud detection and compliance. The manufacturing sector shows 78% AI adoption and 54% GenAI adoption, primarily for predictive maintenance, quality control, and supply chain optimization. The energy sector leads with 83% AI adoption and 73% GenAI adoption, utilizing it for grid optimization and predictive maintenance.
Investment in GenAI is gaining considerable momentum, with 84% of organizations in the region planning to allocate between $1 million and $2 million towards GenAI projects this year. On average, GenAI accounts for 38% of AI budgets in the APAC region, while predictive and interpretative AI commands 61%. The AI-centric server market in Asia-Pacific is projected to reach a substantial $23.9 billion by 2025.
While AI is reshaping the job market, it is also creating new opportunities. LinkedIn’s data reveals that 50% of India’s fastest-growing roles today did not exist a decade ago, indicating that AI is transforming work rather than simply eliminating it. Skills related to AI and machine learning have seen the fastest year-on-year growth at 33%. However, roles in mid-management, support functions, and legacy technology operations are more vulnerable to automation.
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To unlock AI’s full potential, the report stresses the importance of addressing data availability, quality, and governance. It recommends a combination of internal investment and external collaboration to overcome challenges and ensure a smooth AI adoption process, maximizing efficiency, innovation, and competitive advantage for Indian enterprises.
