India Emerges as Global Leader in Enterprise AI Adoption

India has consolidated its position as a major force in enterprise artificial intelligence, ranking second globally in AI and machine learning usage, according to a new report by cloud security firm Zscaler. The findings underline India’s rapid digital transformation, while also flagging serious cyber security risks linked to the growing deployment of advanced AI systems across sectors.

India’s Rising Share in Global AI Usage

The ‘Zscaler ThreatLabz 2026 AI Security Report’ places India just behind the United States in enterprise AI/ML transactions. The study analysed nearly one trillion AI and machine learning transactions processed on the Zscaler Zero Trust Exchange platform between January and December 2025. Indian enterprises alone logged 82.3 billion AI/ML transactions between June and December 2025, accounting for 46.2 per cent of all AI activity in the Asia-Pacific region. This surge reflects sustained government-led digital initiatives, large-scale investments in AI infrastructure, and a rapidly expanding AI-skilled workforce.

Sectoral Drivers of AI Growth

AI adoption in India has been driven primarily by the Technology and Communication sector, which recorded 31.3 billion transactions. Manufacturing followed with 15.7 billion, while Services and Finance & Insurance contributed 12.6 billion and 12.2 billion transactions respectively. Cloud-first enterprise architectures and widespread integration of AI into routine business workflows have enabled faster and scalable deployment of AI services across these industries.

Security Gaps and the Rise of Agentic AI

Despite impressive adoption, the report highlights a widening gap between innovation and security readiness. Many organisations lack a comprehensive inventory of their active AI models, increasing the risk of sensitive data exposure. A major concern is the rise of “agentic AI”, autonomous systems capable of independent planning and action. Zscaler researchers found that under real adversarial testing, enterprise AI systems often failed within minutes, with a median time to critical failure of just 16 minutes.

Important Facts for Exams

• India ranks second globally in enterprise AI/ML transactions after the United States.
• India accounts for over 46 per cent of total AI activity in the Asia-Pacific region.
• Agentic AI refers to autonomous systems capable of independent decision-making and action.
• Zero Trust architecture is increasingly seen as essential for securing AI-driven enterprises.

Data Risks and the Need for Zero Trust Security

The report warns that AI platforms have become concentrated repositories of corporate intelligence. In 2025, more than 18,000 terabytes of data were fed into AI applications globally, triggering millions of data loss prevention violations. As cybercriminals and state-backed actors increasingly weaponise AI, experts argue that traditional defences are inadequate. A Zero Trust security approach, combining continuous visibility, strict data controls, and AI-driven defence mechanisms, is seen as critical to securing India’s fast-growing AI ecosystem.