Indian Cities Make Strides in AI Adoption, Rise in Global Rankings

Indian cities are making strides in AI adoption, with Bengaluru emerging as a major R&D and innovation hub. Mumbai and Delhi are also using AI creatively in traffic management and public security. Although no Indian city made the top 15, several have climbed higher in the rankings, according to Counterpoint Research's 2025 AI City Index. Investment in physical infrastructure is needed across the country, says Tarun Pathak, research director at Counterpoint Research.

Indian cities are making significant strides in AI adoption, with Bengaluru emerging as a major R&D and innovation hub. According to Counterpoint Research's 2025 AI City Index, several cities have climbed higher in the rankings, although no Indian city made the top 15. This progress is driven by strategic investments in technology and infrastructure.

Bengaluru, known as the Silicon Valley of India, has seen a surge in AI adoption. The city is home to 875 Global Capability Centers (GCCs) and accounts for 34 per cent of India's GCC workforce [3]. SAP recently opened its new 41-acre campus in Bengaluru, marking it as the company’s second-largest R&D hub outside its headquarters in Germany. This expansion underscores the city's growing importance in the tech sector [3].

Mumbai and Delhi are also leveraging AI creatively in various domains. Mumbai is using AI for traffic management and public security, while Delhi is implementing AI solutions to improve urban infrastructure and public services. These initiatives demonstrate a commitment to leveraging technology for urban development and enhancing the quality of life for residents.

However, despite these advancements, investment in physical infrastructure remains a critical need across the country. Tarun Pathak, research director at Counterpoint Research, emphasizes the importance of such investments to support the growth of AI capabilities and innovation [1].

Artificial Intelligence is rapidly transforming recruitment within GCCs, with 48 per cent planning to adopt AI-based hiring tools [1]. This trend is part of a broader shift towards AI adoption in major industries, as seen in the surge of AI implementation across sectors like digital and physical applications [2]. Companies such as Adobe, Amazon, and Johnson Controls are at the forefront of this trend, leveraging AI to optimize operations and reduce carbon footprints [2].

As Indian cities continue to advance in AI adoption, the need for strategic investments in infrastructure and technology becomes increasingly evident. These investments will be crucial for maintaining and accelerating the growth of AI capabilities and innovation, positioning India as a global leader in the tech sector.

References:
[1] https://gcc.economictimes.indiatimes.com/news/talent-strategy/indias-gccs-set-for-major-workforce-expansion-in-fy26-led-by-ai-adoption/123042879
[2] https://www.ainvest.com/news/ai-adoption-surges-industries-reshaping-competitive-advantages-morgan-stanley-2508-59/
[3] https://indianexpress.com/article/technology/tech-news-technology/sap-new-campus-bengaluru-second-largest-hub-10171208/