India's AI Ad Surge: High Consumer Openness, Low Basic Ad Knowledge

• India is rapidly becoming a global testbed for AI-driven, hyper-personalised marketing, despite a significant knowledge gap among consumers regarding basic advertising concepts.
• Indian consumers show high openness to AI, with 48% trusting AI-generated content and 82% accepting AI recommendations, significantly above global averages.
• Key drivers include hyper-personalisation, human-AI collaboration, and vernacular AI, which boosts engagement by 30-40% and expands advertising to Tier-2/3 cities.
• Marketers view AI as an augmentation tool (73%) requiring human oversight for cultural nuance and ethical judgment, rather than full automation.
• Emerging challenges include privacy concerns under India's DPDP Act, evolving micro-moment marketing, and the role of voice assistants in bridging digital divides.

Why It Matters: India's AI ad surge transforms marketing, impacting consumers despite knowledge gaps.