India Stands 63rd Among 147 Countries In AI Adoption: Report

Microsoft's AI Economy Institute (AIEI) published the report titled 'AI Diffusion Report 2025' according to which India ranks 63rd globally in AI adoption.

The report states that, Global AI adoption rate increased from 15.1% in H1 2025 (January-June) to 16.3% in H2 2025 (July-December), marking a 1.2 percentage point growth among the working-age population worldwide, meaning roughly one in six people globally are using AI.

The report mentions a widening digital divide exists where the Global North's AI adoption (24.7%) grew nearly twice as fast as the Global South (14.1%), expanding the gap from 9.8 to 10.6 percentage points.

The United Arab Emirates leads global AI adoption rankings at #1 with 64.0% of its working-age population using AI in H2 2025, up from 59.4% in H1 2025, followed by Singapore at #2 with 60.9% adoption.

South Korea emerged as the biggest success story in the AI Diffusion Report 2025, jumping seven positions from 25th to 18th place with 81.4% user growth and becoming the world's second-largest ChatGPT subscriber market after the US.

The report shows the United States dropped from 23rd to 24th place in AI adoption rankings with 28.3% usage rate, despite leading in AI infrastructure and frontier model development, lagging behind smaller, highly digitized economies.

The report indicates that all ten countries with the largest AI adoption increases are high-income economies, while the next billion AI users will likely emerge from the Global South through accessible, open-source platforms.