Why India’s digital ecosystem may define next phase of agentic AI and invisible computing

Technology behaves differently in India. The smartphone, for instance, is not simply a device here, it's the only device for millions. For many of India's more than 970 mn internet subscribers, it's their bank branch, office, classroom, TV, booking counter and storefront. Which is why India may become one of the most important places in the world for the next phase of AI.

In the last few years, our relationship with AI has been defined by the prompt. We've been encouraged to speak the machine's language - learn prompt engineering from AI experts on Instagram and YouTube - to achieve useful results. The assumption underlying this has remained the same: humans must adapt to machines.

The industry's first wave focused on genAI where you asked a question, and the machine answered. The next wave is more ambient: agentic AI systems understand context, coordinate tasks and operate in the background. The interface is starting to disappear. This shift matters everywhere. But it matters especially in India.


Unlike many developed economies, where AI is often discussed as a productivity layer added onto existing systems, India is likely to absorb AI as infrastructure.

The pattern exists. Digital payments became mainstream not because people were fascinated by fintech, but because UPI removed friction from daily life. According to GoI, UPI processed more than 172 bn transactions in FY25, with transaction values exceeding ₹246 lakh cr.

Technologies that scale in India are usually the ones that reduce effort. Which is why the move from genAI to agentic AI feels significant. Instead of waiting for instructions, it acts on habits and context. The tech becomes more practical.

Smartphone is evolving from a device filled with apps into a system that anticipates needs and organises information before users need it. That's the difference between AI as a feature and AI as infrastructure. Technologies that reshape societies most deeply usually become invisible over time.

The most important technologies in history didn't succeed by demanding constant effort from users. Electricity did not transform society because people admired power stations. Technology becomes infrastructure when people stop thinking about it. AI now appears to be moving in that direction, and India could become the largest real-world laboratory for that transition.

For a marketing manager in Bengaluru, her AI-powered smartphone not only manages her work tasks but also integrates with her smart home devices, automatically adjusting the lighting and temperature to create a relaxing environment.

Similarly, many cities need washing machines that optimise water usage, set wash cycles automatically based on fabric type, and run during the day when energy costs are lower. For a family in Jaipur, an AI-powered AC adjusts its cooling settings based on the time of day to keep them comfortable without wasting energy.

These innovations solve real problems. Power cuts, fluctuating voltage and rising energy costs are part of daily life. Here, AI is helping families navigate these challenges with quiet efficiency.

AI could also address challenges that traditional software interfaces struggle to solve. Language is one of them. India has 22 official languages and thousands of dialects. In many cases, voice-based and multimodal AI systems may prove more important.

A farmer in MP will interact more naturally with an AI assistant in Hindi than through a complicated English-language interface. A small retailer in Tamil Nadu may use conversational AI to manage payments, logistics or customer interactions without formal technical training.

Economic implications are substantial. NITI Aayog estimates that AI could add $1 tn to India's GDP by 2035. Much of that value will come from incremental improvements spread across millions of everyday decisions: healthcare, logistics, coordination, translation, education and commerce. The ultimate success of AI may, therefore, look surprisingly ordinary.

In South Korea, like in the West, we associate innovation with speed and optimisation. India demonstrates another model: scale through utility. Technologies succeed here when they fit naturally into everyday life.

Users will simply notice fewer interruptions, less friction, fewer repetitive tasks, devices that demand less attention. And, one day, people will stop talking about AI altogether. That will be the moment it finally becomes infrastructure.