India’s Workforce Goes AI-First as Frontier Firms Redefine Future of Work: Microsoft Report

Microsoft

New Delhi, August 20, 2025 – India is emerging as a global leader in AI-powered transformation of the workplace, with organizations rapidly moving toward an AI-first future. According to Microsoft’s 2025 Work Trend Index, 90% of Indian business leaders view 2025 as a pivotal year to rethink strategies and operations, while 93% intend to integrate AI agents to expand workforce capacity within the next 12–18 months.

At the forefront of this transformation are India’s Frontier Firms—organizations that are reimagining work by embedding AI deeply into business models. Unlike conventional adopters, these firms are building hybrid ecosystems where human expertise works alongside AI agents to automate processes, improve decision-making, and boost productivity. Nearly 59% of Indian leaders already deploy AI agents across entire teams to manage workflows and scale operations with agility.

“India is firmly in its AI-first era, with agility accelerating at an unprecedented pace,” said Puneet Chandok, President, Microsoft India & South Asia. “Leaders are turning AI’s promise into profitability—scaling operations, fostering creativity, and redefining collaboration. The blueprint for the future of work is being written right here in India.”

Indian executives are treating AI not just as a tool but as a catalyst for reinvention. The report shows 64% of leaders prioritizing productivity gains, while 90% are rethinking their organization’s fundamental design in response to AI. Many are shifting from incremental improvements to complete structural reinvention.

As organizations operationalize AI, traditional roles are evolving into AI-centric functions. Companies are creating positions such as Agent Bosses, AI Workflow Designers, and Software Operators. About 92% of leaders say they are considering adding AI-specific roles, while over half expect teams to build multi-agent systems to automate complex tasks.

To unlock AI’s potential, Indian firms are investing heavily in upskilling programs. The Index highlights that 51% of leaders see workforce training as their top priority in the next 18 months. Beyond technical skills, companies are emphasizing AI fluency, ethics, and collaboration, ensuring employees can work seamlessly with digital agents.

With 66% of employees and 80% of leaders already familiar with AI agents, India is better positioned than most countries to lead this transition. Globally, Microsoft reports over 800 million monthly active users of AI-powered features across its ecosystem, with Copilot apps alone surpassing 100 million users. In India, enterprise adoption has been particularly strong, with PwC, LTIMindtree, and Cognizant among those sharing success stories of large-scale AI deployment.

As Indian firms scale AI adoption, the Microsoft report underscores a decisive shift—from experimenting with AI to embedding it at the core of work itself. India is not just adapting to AI’s rise; it is actively shaping how the world will work in the decade ahead.