Indian Firms Lead Global AI Adoption, But Skill Gaps Pose Challenge: IMF

• Nearly 60% of Indian companies use AI, significantly above global averages, according to an IMF Country Focus report.
• Despite high adoption, skill shortages, inadequate tools, and integration challenges hinder broader AI implementation.
• IMF simulations suggest AI could boost total factor productivity in emerging Asia, including India, by 0.3 to 3 percentage points over a decade.
• India needs further investment in digital infrastructure, worker training, and protection for job displacement to ensure equitable AI benefits.
• Structural challenges like small factory sizes, complex regulations, and rigid labor laws limit overall productivity growth in manufacturing.