World Bank ranks India among top 10 in AI readiness

The World Bank has categorized India as one of the top 10 nations globally in terms of artificial intelligence (AI) preparedness, according to its latest report. This assessment is based on factors such as India's vast technical workforce, its globally integrated IT sector, and its digital public infrastructure. The report predicts a medium-term and global impact for India, although the precise long-term outcomes remain uncertain.

AI is expected to significantly enhance productivity and revolutionize public service delivery in India. However, the World Bank acknowledges that the technology's influence on employment and overall economic stability is still ambiguous. To fully realize its potential, the report recommends expanding AI adoption beyond large urban firms, enhancing worker capabilities, bolstering infrastructure, leveraging AI in public services, and developing adaptive governance frameworks.

Private AI investment in India reached $4.1 billion (₹36,231.7 crore) in 2025, a threefold increase from the previous year, signifying growing confidence in the nation's tech sector. Simultaneously, employment in India's Global Capability Centres expanded to 2.36 million, highlighting AI's potential to foster development while cautioning about its uncertain long-term effects on labor markets.

The report, titled 'Beyond the AI Divide: A Simple Approach to Identifying Global and Local Overperformers in AI Preparedness,' highlights that countries fall into three economic categories in the context of the AI Divide: high-income economies like Singapore and the United States, upper-middle-income nations such as China and Malaysia, and lower-income economies like India and Rwanda.

Despite resource limitations, India and Rwanda are making remarkable progress by leveraging aggressive policies, a large pool of engineering talent, and digital public infrastructure.