India is racing ahead in AI adoption, but falling behind where it matters

India has positioned itself as a frontrunner in the adoption of artificial intelligence (AI), surpassing many major economies. A recent survey reveals that nearly 40% of Indian enterprises report significant or comprehensive use of AI, outpacing the global average of 28% across 15 countries surveyed. However, this achievement is tempered by a concerning lack of deep technical expertise in advanced AI technologies, where India ranks low compared to its peers. According to Deloitte's 'State of AI in the Enterprise: India Insights' report published in April 2026, India excels in adoption across various functional areas, including strategy and operations, product development, and marketing. For instance, 56% of Indian respondents have implemented AI at scale in their operations, compared to a global average of 39%. Similarly, 55% have done so in marketing and sales, exceeding the global average of 46%. Moreover, India stands out for its strategic integration of AI in decision-making processes. It ranks first among 15 countries in utilizing AI for strategic business functions, highlighting the technology's ingrained presence in core operations. Yet, despite these advancements, the survey reveals a stark contrast in expertise levels. When assessing organizational proficiency in AI, Indian respondents reported a very high expertise rate of just 0% to 4% across various AI categories, while the global average ranges from 2% to 8%. In the rapidly evolving realm of generative AI, only 4% of Indian participants claim to possess very high expertise, compared to a global average of 8.3%. For agentic AI, the situation is even bleaker, with India reporting no expertise at all, against a global average of 2.6%. The gap narrows in traditional AI and machine learning, where India's expertise level stands at 24%, slightly above the global average of 23.5%, reflecting established practices in this area. The report emphasizes that as India progresses into the next phase of AI transformation, building institutional capabilities will be crucial. Success will hinge on fostering strong governance frameworks and nurturing talent equipped with adaptive AI skills. Notably, the commitment to AI investment in India has never been stronger, with 94% of respondents anticipating increased AI spending in the coming year, the highest among all surveyed markets. In contrast, no respondents from India foresee a reduction in AI budgets, unlike other regions where at least 10% expect cuts.