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India leads Asia Pacific in AI adoption & institutional trust

Thu, 18th Sep 2025

India has been identified as the frontrunner in artificial intelligence adoption across the Asia Pacific region, with 56% of adults in metropolitan areas actively using generative AI in 2025.

This data originates from a comprehensive research study conducted by Forrester that examined the state of AI trust, adoption, and related consumer attitudes across Asia Pacific markets including India, Australia, and Singapore.

AI literacy and adoption

The report shows a significant increase in India's generative AI usage, rising from 44% in 2024 to 56% in 2025. This figure places India ahead of Singapore, where 49% of metro consumers are active users, and Australia, with 35% adoption.

AI literacy in India far exceeds that of neighbouring countries. According to the research, 63% of Indian adults in metropolitan areas describe themselves as knowledgeable about artificial intelligence, contrasting with 26% in Singapore and 18% in Australia. The proportion of Indian adults indicating no understanding of AI stands at 5%, which is the lowest globally. Millennials are the most familiar demographic group, with 69% demonstrating strong AI comprehension, suggesting a notable advantage for technology-driven businesses operating within India.

Trust dynamics

Indian consumers display a nuanced relationship with AI - what Forrester's analysts have termed the "trust paradox". While 45% of Indian respondents view AI as a serious societal threat, 66% of those with knowledge of AI say they trust AI-provided information. The report notes that literacy in AI seems to drive both a heightened awareness of related risks and increased confidence in the technology's capabilities.

Indian consumers' trust in AI tools also surpasses their counterparts elsewhere, with 64% expressing trust in AI-powered language translation services compared to 27% in Australia and 38% in Singapore.

Institutional trust

The study finds that Indian adults have the highest levels of confidence in established entities for managing AI risks. Some 58% trust long-established companies and big technology organisations, while 52% express confidence in highly regulated institutions. By comparison, private sector trust in Australia and Singapore is typically below 25%.

This pattern suggests institutional trust in India serves as an important factor in the acceptance and management of AI risks. Brand heritage and regulatory compliance are identified by the research as critical drivers for trust in the Indian AI market.

Concerns and risks

Despite high rates of AI adoption and knowledge, many Indian consumers remain concerned about digital security. The study reports that 73% of metro adults in India are worried about online scams, 67% express concern about identity theft and disinformation campaigns, and 66% are troubled about deepfakes.

These concerns, according to the report, present notable challenges for enterprises wishing to build consumer confidence and drive differentiation via security protocols and transparent AI implementation practices.

Regulation and responsibility

"India's AI landscape presents a remarkable combination of high adoption, sophisticated understanding, and pragmatic scepticism. The data reveals that Indian consumers are not just early adopters, they're discerning users who understand both AI's potential and its risks. For global enterprises, this creates an environment where transparency, security, and institutional credibility become competitive differentiators. The 59% of Indians who believe governments should regulate AI, combined with 52% who trust their national government to manage AI risks, suggests a market ready for responsible AI innovation rather than unchecked technological deployment," said Vasupradha Srinivasan, Principal Analyst at Forrester.

The findings indicate that the majority of Indian metro adults expect and support government regulation of artificial intelligence. This coincides with a broader trend emerging from Forrester's research: knowledgeable consumers are more likely to trust AI when it is implemented by organisations known for institutional credibility and robust regulatory standards.

Enterprise guidance

The report outlines that as India's AI usage grows, enterprise leaders operating within the country should prioritise robust AI governance, transparency, and consumer protection. Success in this market, the research suggests, will depend on the ability of businesses to establish ethical AI frameworks, transparent communication, and strong data security measures while leveraging the advanced digital literacy of the Indian workforce.

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