V3I7P58

The AI Divide: A Comparative Analysis of Artificial Intelligence Adoption, Capabilities, and Competitiveness in India versus Global IT Markets

Hemanth J^1*, Dr. Lakshminarayana K²

Abstract

This research paper conducts a comprehensive comparative analysis of Artificial Intelligence adoption, capabilities, and competitiveness within the Indian IT sector relative to global markets. Through rigorous secondary data analysis of 95 peer-reviewed articles, industry reports, government publications, and market intelligence sources spanning 2019-2026, this study investigates the differential trajectories of AI integration across geographies and organisational contexts. The findings reveal a significant capability gap, with global IT leaders demonstrating 63.8% higher AI maturity scores compared to Indian IT firms, while India excels in talent availability (28.4% of global AI talent) and cost competitiveness (42.6% lower implementation costs). The analysis identifies key drivers including investment intensity, regulatory frameworks, research infrastructure, and talent ecosystems. The study proposes a comprehensive AI Competitiveness Index incorporating technological readiness, human capital, innovation ecosystem, and governance dimensions. Recommendations include developing a national AI strategy for the IT sector, fostering public-private research partnerships, implementing AI education reforms, and establishing global collaboration frameworks. This research contributes to understanding the strategic positioning of India’s IT sector in the global AI landscape and provides actionable insights for policymakers, industry leaders, and academic researchers.

Keywords:

Artificial Intelligence, Indian IT Sector, Global IT Market, AI Adoption, Competitiveness, Technological Readiness, AI Talent, Innovation Ecosystem