India ranks among the world’s top five markets for advanced AI “thinking-capability” usage per person, excelling in coding, data analysis, and complex reasoning tasks according to OpenAI’s first Capability Gap findings. However, the report reveals a stark urban concentration where India’s top 10 cities account for nearly 50% of all AI users despite representing less than 10% of the national population, highlighting a growing divide between capability and access. Delhi NCR leads in user penetration while Bengaluru, Hyderabad, and Chennai dominate advanced usage, with data analysis 30 times higher and coding 4 times higher in these hubs compared to lagging regions.
Urban AI Concentration Challenge
OpenAI’s analysis of ChatGPT Plus usage shows India’s individuals increasingly tackle high-value problems through reasoning tokens, positioning the country as a fast-growing AI builder ecosystem. Codex user numbers surged 4x within two weeks of the tool’s February 2026 launch, reflecting strong engagement in coding and analytics. Yet advanced adoption gaps reveal data analysis disparities up to 30-fold between leading cities and other regions, with AI developer tools showing ninefold differences.
The concentration underscores infrastructure, skills, and economic factors limiting broader penetration despite India’s young, tech-savvy population.
Regional Usage Patterns Emerge
Beyond Tier-1 cities, distinctive patterns surface: eastern states like Assam (22% education-related AI interactions, 20% above national average), Odisha, Manipur, Tripura, and Chhattisgarh show strong learning applications. Conversely, Jammu & Kashmir (10% health interactions, 32% above average), Punjab, Chandigarh, Himachal Pradesh, and Kerala demonstrate elevated health and wellness engagement.
These variations suggest context-specific adoption pathways as AI integrates into regional priorities.
Democratisation Imperative
“The central question now is how quickly AI benefits extend beyond early adopters and leading cities,” said Oliver Jay, OpenAI’s Managing Director, International. The company pursues expansion through partnerships with Tata Consultancy Services for AI-native development, Razorpay for developer monetisation, and university programs building early skills, alongside localised applications in education, healthcare, and agriculture.
India’s AI trajectory hinges on language support, affordability, and infrastructure scaling to convert urban leadership into nationwide transformation.
