India's AI growth story has a gap, metros dominate usage: OpenAI

India is emerging as one of the world’s most advanced artificial intelligence (AI) user markets, but the benefits of this progress remain heavily concentrated in a handful of large cities, according to new findings from OpenAI.

In its first “Capability Gap” report focused on India, OpenAI said the country ranks among the top five globally in advanced AI usage, particularly in areas such as coding, data analysis, and complex reasoning. However, the report flags a widening divide between early adopters in major urban hubs and the rest of the country.

“India ranks among the world’s most advanced AI markets, particularly in coding, data analysis, and complex reasoning,” the company said. 

The data shows that India’s AI ecosystem is growing fast and becoming more advanced. Developer activity has picked up sharply, with usage of OpenAI’s Codex tools rising fourfold within two weeks of its February 2026 launch.

Metro dominance sharpens the divide

Despite this momentum, AI adoption remains uneven. The top 10 cities account for nearly half of all AI users in India, even though they represent less than 10% of the population. This makes AI adoption roughly three times more concentrated in India than in countries such as the US, UK, Brazil, and Germany. 

Delhi-NCR leads in terms of ChatGPT penetration, followed by other major hubs such as Bengaluru, Hyderabad and Chennai.

The disparity becomes even more pronounced in advanced use cases. Data analysis usage is up to 30 times higher in leading cities compared to lagging regions, while coding usage is four times higher and developer tool usage shows a ninefold gap. 

“The central question now is how quickly the benefits of AI can extend beyond early adopters and leading cities to the wider population,” said Oliver Jay, Managing Director - International, OpenAI. “Closing this gap will require expanding access, building skills, and enabling more meaningful use across the country.” 

Beyond metros, new use cases emerge

The report highlights strong engagement in education and healthcare-related use cases across several regions.

In states such as Assam, Odisha, Manipur, Tripura, and Chhattisgarh, a significant share of AI interactions is linked to learning and education. Meanwhile, regions including Jammu & Kashmir, Punjab, Himachal Pradesh, and Kerala are seeing higher-than-average usage in health and wellness applications. 

The next phase 

The findings underline a broader structural challenge for India’s AI journey, bridging the gap between capability and access.

“The capability gap is not just between countries — it exists within them,” OpenAI noted, adding that the next phase of growth will depend on how effectively AI access is democratised through language, affordability and infrastructure. 

To address this, OpenAI said it is expanding partnerships in India, including collaborations with enterprises such as TCS, fintech firms like Razorpay, and universities through ChatGPT Edu initiatives.