India Becomes Global AI Powerhouse as Cyber Risks Rise Sharply
India has emerged as one of the world’s fastest-growing hubs for enterprise artificial intelligence, ranking second globally after the United States in AI and machine learning usage by businesses. This finding comes from the Zscaler ThreatLabz 2026 AI Security Report, which highlights India’s rapid AI adoption alongside rising cybersecurity risks. The report was released ahead of the India AI Impact Summit 2026, scheduled to take place in New Delhi from February 16 to 20, where leading global technology executives, policymakers, and innovators are expected to discuss the future of AI and digital transformation.
According to the report, Indian enterprises recorded an extraordinary 82.3 billion AI and ML transactions between June and December 2025. This accounted for more than 46 percent of all AI activity in the Asia-Pacific region, making India the clear regional leader. Zscaler’s analysis is based on nearly one trillion AI and ML transactions observed on its Zero Trust Exchange platform throughout 2025, offering a detailed picture of how deeply AI has become embedded in enterprise operations.
The report attributes India’s strong performance to continued government-backed digital initiatives, growing public and private investments in AI infrastructure, and large-scale skill development efforts. A rapidly expanding AI-ready workforce, combined with cloud-first technology strategies, has enabled companies to deploy AI tools quickly and at scale. Compared to previous years, India’s enterprise AI growth has accelerated significantly, reflecting the country’s ambition to position itself as a global digital and technology leader.
Sector-wise, AI usage in India is being driven primarily by Technology and Communication, which alone accounted for over 31 billion transactions. Manufacturing followed with nearly 16 billion transactions, while Services and Finance and Insurance sectors also saw heavy AI adoption. These numbers underline how AI is no longer limited to experimentation but is now a core part of business workflows across industries.
However, the report also raises serious concerns about security readiness. Many organisations do not maintain even a basic inventory of the AI models and features they are using. As a result, companies often lack visibility into where sensitive data is being processed or shared. This gap between rapid innovation and weak governance increases the risk of data leaks and cyberattacks, especially as AI becomes more autonomous.
A major focus of concern is the rise of “Agentic AI,” systems that can plan and act independently without constant human input. Zscaler researchers found that when enterprise AI systems were tested under real-world attack scenarios, critical vulnerabilities emerged extremely quickly. In many cases, systems failed within minutes, and some were breached almost instantly. This shows how traditional security approaches struggle to keep up with machine-speed threats.
The report also highlights the massive scale of data being fed into AI tools worldwide. In 2025 alone, over 18,000 terabytes of data were uploaded into AI applications. Popular tools such as ChatGPT and Grammarly have become large repositories of corporate information, making them attractive targets for cybercriminals and espionage groups. Millions of attempts to share sensitive data, including source code and medical records, were detected, reinforcing the need for stronger safeguards.
Experts warn that AI is no longer just improving productivity but is also becoming a powerful weapon for cyberattacks. To counter this, organisations must adopt intelligent, AI-driven security models based on zero-trust principles. Continuous visibility, strict data controls, and automated threat detection are now essential to protect businesses as AI adoption continues to surge in India.
Source: Business Standard
