World Bank: Only 23% of Indian formal firms use AI

The World Bank's October 2026 India Development Update says only 23% of surveyed formal firms in India use AI, about a third of the US level. Private AI investment in India rose from $1.2 billion in 2024 to $4.1 billion in 2025.

• 23% of Indian formal firms use AI, a third of the US level
• Private AI investment rose 242% to $4.1 billion in 2025
• GCC employment grew from 1.9 million in 2024 to 2.36 million in 2025
• World Bank focuses lending on locally adapted 'small AI' tools