India’s AI Boom: Is It Only Benefiting the Big Cities?
India has emerged as one of the world’s fastest-growing artificial intelligence markets, but a new report from OpenAI reveals a striking imbalance in how this technology is being accessed. According to the study, nearly half of all ChatGPT users in the country are concentrated in just ten major cities. These urban centers account for only about 10 percent of India’s total population, yet they dominate AI usage. This disparity raises a critical question: is the AI revolution bypassing the vast majority of the country?
Understanding the AI Capability Gap
The report introduces a concept called the “AI capability gap.” Fidji Simo, OpenAI’s CEO of Applications, explains this as the distance between what AI models like ChatGPT are technically capable of doing and what users actually achieve with them. OpenAI has designated 2026 as the year to close this gap, aiming to transform AI from a tool limited to coding and technical tasks into a practical solution for everyday problems faced by ordinary people.
India ranks among the most advanced nations globally in coding, data analysis, and reasoning tasks. However, the distribution of AI usage here is far more concentrated than in countries like the United States, the United Kingdom, Brazil, or Germany. While users in those nations show a more even spread, India’s AI adoption remains heavily clustered in a handful of tech-centric cities.
Where AI Is Thriving: The Tech Hubs
The heaviest use of AI tools is concentrated in India’s established technology hubs. Cities such as Bengaluru, Hyderabad, Delhi, and Chennai lead the charge. For instance, usage of Codex, OpenAI’s AI-powered coding assistant, surged fourfold across India within just two weeks of its launch. Yet, the disparity between regions is stark—usage varies by up to nine times depending on the location. This suggests that while AI is rapidly gaining traction in tech corridors, its penetration into smaller towns and rural areas remains minimal.
Education: A Bright Spot in Less Developed States
Despite the overall urban concentration, there is a promising trend emerging from some of India’s less economically developed states. Regions like Assam, Odisha, Manipur, Tripura, and Chhattisgarh are using AI primarily for educational purposes. In Assam, for example, 22 percent of all ChatGPT interactions are education-related—far exceeding the national average. This indicates that even in areas with limited infrastructure, people are leveraging AI to bridge learning gaps and access knowledge.
Healthcare: A Growing Use Case in Northern and Southern States
AI is also making inroads into healthcare. States such as Jammu and Kashmir, Punjab, Himachal Pradesh, and Kerala report a higher proportion of health-related queries on ChatGPT. In Jammu and Kashmir, one out of every ten questions asked is about health. This suggests that residents in these regions are turning to AI for medical advice, symptom checking, and wellness information, reflecting a growing trust in the technology for personal well-being.
The Scale of Adoption in India
India has become one of OpenAI’s largest markets, with over 100 million weekly active users on ChatGPT. This massive user base underscores the country’s appetite for AI. However, OpenAI’s Managing Director for International Markets, Oliver J., notes that the real challenge now lies in extending these benefits to those who remain disconnected. He emphasizes that closing the capability gap requires three key elements: improved access to technology, skill development programs, and meaningful, real-world applications.
Why Closing the Gap Matters
AI is often described as a great equalizer—a tool that can level the playing field for people regardless of their background. But if access remains limited to developers and professionals in a few wealthy cities, that promise remains unfulfilled. India’s young and rapidly growing population holds the key to bridging this divide. With the right investments in infrastructure, education, and localized applications, AI could transform lives far beyond the tech hubs. The question is not whether India can adopt AI, but whether it can ensure that the benefits reach every corner of the country.
