India Ranks Second Globally in Enterprise AI and Machine Learning Adoption

India Emerges as Global Leader in Enterprise AI Usage

India has strengthened its standing in the global artificial intelligence landscape, securing the second position worldwide in enterprise AI and machine learning adoption, according to the latest ThreatLabz analysis by Zscaler . The findings reflect India’s accelerating digital transformation while drawing attention to critical security vulnerabilities accompanying large-scale AI deployment.

India’s Expanding Share in Global AI Transactions

The ‘Zscaler ThreatLabz 2026 AI Security Report’ ranks India immediately after the United States in enterprise AI/ML activity. The study evaluated nearly one trillion AI and machine learning transactions processed via the Zscaler Zero Trust Exchange platform between January and December 2025. Indian organisations generated 82.3 billion AI/ML transactions during the June–December 2025 period, representing 46.2 per cent of all AI usage across the Asia-Pacific region. This growth is attributed to policy-driven digitalisation, expanding AI infrastructure investments, and a rapidly growing pool of AI-skilled professionals.

Sectoral Engines Driving AI Adoption

AI expansion in India has been led by the Technology and Communication sector, accounting for 31.3 billion transactions. Manufacturing followed with 15.7 billion transactions, supported by automation and predictive analytics integration. The Services sector recorded 12.6 billion transactions, while Finance and Insurance contributed 12.2 billion. Cloud-native enterprise ecosystems and AI-enabled business processes have enabled scalable adoption across these industries.

Security Challenges and the Rise of Agentic AI

Despite the surge, the report highlights significant security preparedness gaps. Many enterprises lack full visibility over deployed AI models, increasing risks of data leakage and governance failures. A major concern is the emergence of “agentic AI” — autonomous systems capable of independent reasoning, planning, and execution. Under adversarial simulations, enterprise AI systems frequently demonstrated rapid vulnerabilities, with a median time to critical system failure of approximately 16 minutes.

Data Concentration and Cybersecurity Implications

AI platforms are increasingly becoming repositories of sensitive organisational intelligence. Globally, over 18,000 terabytes of enterprise data were processed through AI systems in 2025, resulting in widespread data loss prevention violations. Security experts caution that AI-driven workflows expand the attack surface, enabling sophisticated cyber threats, including AI-assisted phishing, data exfiltration, and automated exploitation techniques.

Exam-Focused Points

• India ranks second globally in enterprise AI/ML transactions after the United States.

• India accounts for over 46% of AI usage within the Asia-Pacific region.

• Agentic AI refers to autonomous AI systems capable of independent decision-making.

• AI platforms present elevated risks of data concentration and leakage.

• Zero Trust security models are increasingly vital for AI ecosystem protection.