India Leads the World in AI Usage—but Job Insecurity Casts a Shadow

June 27, 2025 By IronHearted

India has emerged as the global frontrunner in the use of artificial intelligence (AI) at the workplace, according to a report released by Boston Consulting Group (BCG) on June 27, 2025. Titled AI at Work: Perspectives from the Global Workforce, the study revealed that 92% of Indian employees surveyed use AI tools—well ahead of their counterparts in the United States (75%) and China (70%). This widespread adoption reflects how deeply AI is integrated into India’s tech-driven economy across industries such as information technology, healthcare, education, and finance.

Yet, this impressive uptake also comes with a troubling paradox: while Indian workers are embracing AI at record levels, they are also the most concerned globally about losing their jobs to automation. The survey found that 61% of Indian respondents fear AI could render them jobless in the next five years—significantly higher than the global average of 44%. This dual reality of rapid adoption alongside deep anxiety reflects the complex, transitional phase India is undergoing as it harnesses the power of AI.

Key Insights from the Report

The BCG study surveyed over 17,000 employees across 21 countries, including 1,200 from India. The findings paint a nuanced picture of AI’s role in Indian workplaces:

Unparalleled AI Usage: An overwhelming 92% of Indian workers reported using AI in some form—ranging from generative chatbots like ChatGPT and BharatGPT to automation and analytics tools—cutting across job types from software engineers to retail workers.
Workplace Integration and Productivity: About 70% of Indian respondents are using AI to perform daily tasks such as data interpretation, customer service, and content creation. Nearly half of them (45%) reported a productivity improvement of 20% or more due to AI integration.
High Job Insecurity: India tops the global charts for job displacement concerns, with 61% fearing that AI could threaten their employment in the near future. These worries are especially pronounced among semi-skilled and low-skilled workers in sectors like manufacturing, retail, and clerical work.
Reskilling Deficit: Although India boasts 250,000 AI professionals, 55% of surveyed workers said they feel underprepared for AI-led changes. Many cite inadequate access to training and upskilling programs.
Hope in Transition: Despite these concerns, 68% of Indian workers expressed optimism that AI could offer new career opportunities, provided they receive proper support and retraining.

The report attributes India’s AI leadership to several factors—its digital-savvy population, strong government support, and deep-rooted tech entrepreneurship—but warns that the fears around job loss need immediate policy attention to ensure balanced growth.

Why India Is at the Forefront of AI

India’s leading position in AI adoption is the result of several interwoven developments:

Strong Digital Infrastructure: Systems like Aadhaar (digital ID), UPI (payments), and DigiLocker (document storage) have created fertile ground for AI implementation. For example, UPI’s 500 million monthly users benefit from AI-enabled fraud detection and instant service resolution.
Wide Smartphone Access: With 700 million smartphone users and some of the world’s lowest data costs (₹12 per GB), even rural communities can access AI services through mobile apps, voice assistants, and chatbots.
Vibrant Startup Scene: India is home to over 10,000 tech startups, many focused on AI. Innovative platforms like BharatGPT Mini, launched on June 11, 2025, support 14 Indian languages and bring localized generative AI to low-end devices.
Proactive Government Policy: The IndiaAI Mission, backed by ₹10,000 crore in funding, is building national GPU capacity, supporting AI startups, and promoting inclusive AI platforms such as BharatGen, unveiled on June 2, 2025.
Corporate Adoption: Major firms like Reliance Jio, Infosys, and TCS are embedding AI into core operations. TCS, for instance, reported a 30% boost in software development efficiency using AI. On the consumer side, Samsung’s AI-enabled appliances accounted for half its appliance sales in India as of June 25, 2025.

These trends reflect a deep integration of AI not just in elite business circles, but across everyday services and products.

The Roots of Job Loss Anxiety

Despite the enthusiasm, India’s workforce faces growing unease about AI-induced job disruptions. The fears stem from several tangible factors:

Automation of Repetitive Tasks: AI systems are increasingly capable of handling predictable, repetitive work—threatening jobs in sectors like manufacturing (assembly), retail (cashiering), and admin roles (data processing). A 2024 NASSCOM study predicted that up to 30% of such jobs could be automated by 2030.
Mismatch Between Skills and Demand: While AI talent exists, the broader workforce lacks access to training. Only 20% of workers reportedly have access to AI upskilling programs, leaving the majority unprepared for the transition.
Inequality and the Digital Divide: Job insecurity is higher in rural and semi-urban areas, where 40% of communities still lack reliable internet. Without digital access, these workers are less likely to benefit from AI or reskilling programs.
Layoffs in the Tech Sector: Recent collapses, like that of Builder.ai on June 24, 2025, due to fraud allegations, have increased concerns about job stability in tech, especially among startup employees.
Worrying Global Trends: With AI replacing customer service and software testing roles in developed nations, Indian professionals fear similar waves of disruption in the IT and BPO sectors that employ millions.

This combination of factors explains the sharp contrast between India’s AI optimism and widespread job insecurity.

What This Means for India’s AI Landscape

Economic Opportunities: The AI sector, currently valued at $17 billion, is expected to triple by 2027. High adoption could drive foreign investment—estimated at $5 billion annually—and create new tech jobs.
Labor Market Shifts: According to the BCG report, AI could generate up to one million new roles by 2030 in fields such as AI engineering, data labeling, and ethical AI oversight. However, success depends on rapidly scaling reskilling programs like the AICTE’s updated AI-focused curriculum announced on June 6, 2025.
Promoting Inclusion: Tools like BharatGPT Mini, which are designed for affordable smartphones and support Indian languages, could help bring AI to underserved rural areas, improving access to education and digital healthcare.
Global Positioning: With the highest AI usage rate globally, India is poised to become a central player in shaping international AI norms. Initiatives like the US–India Innovation Bridge (launched June 27, 2025) and the India–France AI Summit (June 5, 2025) bolster India’s role in global AI diplomacy.

Ongoing Challenges and Risks

Insufficient Reskilling: India must train nearly 1 million AI professionals by 2030. Current efforts only cover about 100,000 workers annually, requiring massive expansion of training infrastructure.
Threat of Mass Job Losses: Without safeguards, AI could displace up to 15% of India’s workforce, particularly in low-skilled jobs—compounding unemployment in a country where the jobless rate stood at 7% in 2024.
Ethical and Regulatory Gaps: With 44% of Indians relying on AI chatbots for news (Reuters Institute, June 17), misinformation and bias pose growing risks. Regulatory frameworks for AI oversight remain in early stages.
Infrastructure Deficiencies: Meeting the AI sector’s demands requires an estimated 30,000 GPUs by 2027 and over ₹50,000 crore in data center investments, according to the Ministry of Electronics and IT.

Impact on Key Stakeholders

Government: Policymakers must prioritize skilling, infrastructure investment, and ethical governance to ensure AI benefits are widely shared.
Industries: Companies using AI to drive efficiency must also commit to worker retraining and job transition support.
Employees: While AI opens new career paths for professionals, workers in vulnerable sectors need immediate access to reskilling tools.
Startups: India’s booming AI startup sector is a growth engine, but it must ensure transparency, particularly in the wake of high-profile failures like Builder.ai.

Looking Ahead

India’s current momentum in AI adoption gives it a strong foundation to shape a future-ready economy. However, realizing this potential depends on addressing the fears that accompany transformation. Upcoming initiatives—like the government’s state-level AI programs, plans to acquire 10,000 GPUs by 2026, and curriculum changes—are steps in the right direction.

Global collaborations, like those with France and the United States, will further India’s influence in setting ethical AI norms. Social media sentiment reflects this dual reality: while many celebrate India’s AI leadership as a “digital revolution,” others call for faster, broader efforts to ensure no one is left behind.

Conclusion

India’s position at the top of global AI usage charts reflects a remarkable digital evolution. With 92% of its workforce actively using AI, India is setting benchmarks for adoption and innovation. But the country must also address the 61% of workers who fear losing their jobs to automation. To harness AI’s full potential, India needs to invest in widespread reskilling, ethical safeguards, and inclusive tools. If it succeeds, the nation can not only expand its $17 billion AI industry but also ensure that its digital transformation uplifts all segments of society.