AI in India: Bridging the Capability Gap

AI in India is becoming one of the most advanced markets globally, although the advantages of this progress are primarily seen in a few major cities, as indicated by new research from OpenAI.

According to its initial “Capability Gap” report centred on India, OpenAI revealed that the nation holds a position among the top five countries worldwide for advanced AI usage, especially in areas like coding, data analysis, and complex reasoning. However, the report also points out a growing inequality between early adopters in metropolitan areas and the remaining regions of the country.

AI Usage and Growth in India

OpenAI emphasised that India stands out as one of the leading AI markets globally in coding, data analysis, and complex reasoning.

The analysis indicates that the AI landscape in India is rapidly evolving and becoming more sophisticated. Developer engagement has surged, with the utilisation of OpenAI’s Codex tools expanding four times within just two weeks following its launch in February 2026.

Urban Concentration of AI Adoption

Despite this positive trend, the adoption of AI showcases significant disparities. The top 10 cities account for nearly half of all AI users in India, despite comprising less than 10% of the overall population. This concentration suggests that AI adoption is roughly three times more prevalent in India than in nations such as the US, UK, Brazil, and Germany.

Delhi-NCR emerges as a leader in ChatGPT usage, followed by prominent cities like Bengaluru, Hyderabad, and Chennai.

The differences become significantly apparent in advanced applications. For instance, data analysis usage is as much as 30 times higher in leading cities when compared to less developed areas, while coding usage is four times greater, and the disparity in developer tool utilisation reflects a staggering ninefold gap.

Addressing the Disparities

Oliver Jay, Managing Director – International at OpenAI, remarked that how swiftly the benefits of AI can reach beyond early adopters and urban centres to the broader population is the central issue. Bridging this gap will necessitate expanding access, enhancing skills, and facilitating more impactful usage throughout the country.

Emerging Use Cases Beyond Urban Areas

The report also highlights robust activity in education and healthcare-related uses across various regions.

In states like Assam, Odisha, Manipur, Tripura, and Chhattisgarh, a substantial portion of AI interactions is associated with learning and educational purposes. Meanwhile, regions such as Jammu & Kashmir, Punjab, Himachal Pradesh, and Kerala are experiencing above-average engagement in health and wellness applications.

The Path Forward

The findings signify a broader structural challenge on India’s AI journey, as it seeks to bridge the gap between capability and accessibility.

OpenAI pointed out that this capability gap is not only apparent between countries but also exists within them. The forthcoming stage of growth will hinge on successfully democratizing AI access via language, affordability, and infrastructure.

To support this initiative, OpenAI is broadening its partnerships within India, collaborating with companies like TCS, fintech firms such as Razorpay, and educational institutions through the ChatGPT Edu initiatives.