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India leads APAC region in AI adoption for sustainability: Report

India leads APAC region in AI adoption for sustainability: Report

India is leading the Asia-Pacific (APAC) region in applying

artificial intelligence

(

AI

) to meet sustainability goals, according to

Autodesk

’s 2025 State of Design Make report. The study highlights that more than half of Indian business leaders are using AI to deliver environmentally responsible outcomes, well above the global and APAC averages.

Indian business leaders remain optimistic about the role of AI, with 79 per cent believing that AI will enhance their industry, compared to a global average of 69 per cent. The report also shows that 52 per cent of leaders in India consider AI capabilities their top hiring priority for the coming years.

At the same time, 61 per cent of Indian leaders recognise AI’s potential to disrupt their industry. This view is more pronounced among digitally mature organisations, with 65 per cent anticipating significant shifts compared to 52 per cent of less mature businesses.

Shift towards sustainability
The report notes that 52 per cent of Indian companies are already using AI to support sustainability initiatives, compared to a global average of 39 per cent. With digital transformation gaining momentum, many organisations are viewing sustainability as a core business strategy rather than a compliance requirement.

According to the findings, 86 per cent of Indian leaders believe sustainability initiatives could contribute over 5 per cent to annual revenue. Among digitally mature firms, 84 per cent say that sustainability efforts are helping to attract and retain talent, compared to 67 per cent among less digitally mature companies.

"Indian businesses are not just adopting AI, they're using it with purpose. By integrating AI into their sustainability efforts, they’re turning compliance into competitive advantage," said Alok Sharma, Director AEC, Autodesk India and SAARC. "This strategic shift is driving real impact, from revenue growth to talent attraction, placing India at the forefront of sustainable innovation in the region."

Skills gap and trust challenges
The report also points to a significant skills shortage. About 67 per cent of Indian business leaders say the lack of skilled workers is limiting their growth, with 68 per cent struggling to find candidates with the necessary technical expertise. In some cases, 67 per cent of leaders have had to part ways with employees whose skills did not meet evolving business needs.

In response, 78 per cent of Indian companies plan to increase investment in digital skills training over the next three years.

“Indian businesses clearly recognise the long-term value of AI and sustainability, but building the right talent and trust is essential. Investing in skills, especially AI fluency, will be key to unlocking future growth. The future of innovation hinges on empowering our workforce with the right AI expertise and building trust in this technology, or risk falling behind in an increasingly competitive landscape. Autodesk India is also driving several strategic initiatives with leading academic institutions to address the skill gap in the design and make industry," Sharma said.

While Indian businesses remain broadly optimistic about AI’s potential, trust is becoming an issue. Confidence that companies will make the right decisions regarding AI has declined slightly to 81 per cent, from 85 per cent last year. Overall trust in AI has also dipped, standing at 79 per cent compared to 82 per cent in 2024.

"While trust in AI may be facing some challenges, Indian businesses continue to see its immense potential. The declining confidence in decision-making highlights the need for responsible implementation, but the commitment to long-term investment remains strong," Sharma added. "AI is not just a trend, it's a cornerstone of strategic growth and innovation for the future."

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