India Surges Ahead in AI Adoption as OECD–Cisco Study Reveals Deep Digital Divides

A new OECD–Cisco global research report has put India at the forefront of the generative AI revolution — while also...

A new OECD–Cisco global research report has put India at the forefront of the generative AI revolution — while also issuing a clear warning: as AI adoption accelerates, the gaps in skills, trust, and digital wellbeing across regions and age groups are widening faster than expected. 

The study, which spans multiple economies and demographic groups, highlights India, Brazil, Mexico, and South Africa as countries leading the world in generative AI usage. Young adults, particularly those between 18–35, are emerging as the biggest drivers of this rapid adoption. Their comfort with digital tools, willingness to experiment, and strong mobile-first habits have propelled AI apps, chatbots, code assistants, and creative tools into mainstream everyday use. 

But beneath this impressive growth lies a complex picture of disparities that policymakers and industry leaders must address. 

India’s AI Momentum: Youth Take the Lead 

According to the OECD–Cisco findings, India stands out as one of the most enthusiastic adopters of generative AI. From students using AI for learning to professionals leveraging tools for productivity, the country’s digital-native population is pushing the boundaries of how AI can enhance work and creativity. 

Startups in India have also played a pivotal role, building AI-powered edtech, fintech, and enterprise solutions tailored to local needs. Affordable internet, widespread smartphone penetration, and increasing availability of vernacular AI tools have further accelerated adoption. 

This upward trajectory reflects a defining shift — India is not just consuming global AI; it is shaping it. 

Yet Digital Inequalities Are Growing 

While young users are confidently embracing generative AI, the report sheds light on a widening gap among older age groups. People above 45 show significantly lower comfort levels with AI tools, citing concerns around privacy, misinformation, trust, and job displacement. 

These generational divides mirror existing digital literacy challenges. Urban and semi-urban regions display higher AI adoption compared to remote rural areas, where access, affordability, and training remain barriers. 

The study warns that unless these gaps are bridged, AI may accelerate inequalities instead of reducing them. 

Digital Wellbeing and Trust: Emerging Pain Points 

The OECD–Cisco research also emphasises digital wellbeing — an area where older demographics, as well as emerging markets, showed lower confidence. 

Key concerns include: 

  • Over-reliance on AI for decision-making 
  • Difficulty distinguishing human-generated vs AI-generated content 
  • Anxiety around data safety and model transparency 
  • Rising exposure to algorithmic misinformation 

India’s younger population, despite being more proficient, also acknowledged the need for responsible AI guidelines and quality training. 

The Road Ahead: Inclusion Will Define AI’s Impact 

India’s leadership in generative AI adoption offers enormous economic and social opportunity. However, the report makes it clear that success will depend on inclusive strategies. 

Experts point to three priorities: 

  • Skill development for all age groups — focused on AI literacy, critical thinking, and ethical use. 
  • Trust-building through transparent AI systems — ensuring user data safety and clear consent practices. 
  • Bridging regional disparities — through affordable connectivity, vernacular AI tools, and community-led training. 

A Turning Point for India’s Digital Future 

India’s rise as a global AI frontrunner is undeniable — but so is the urgency to address the digital divides emerging along generational and geographic lines. 

The OECD–Cisco report ultimately reinforces a simple message: AI can be a powerful equaliser, but only if its benefits are accessible to everyone. 

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