Also, 1 in 2 Indian internet users surveyed are already using AI platforms, and 66 per cent of those who use AI platforms is for finding information while 25 per cent users use them to summarise documents or other use cases
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DeepSeek, a low-cost Chinese artificial intelligence (AI) foundational model, has sparked fierce competition in AI, leading to increased adoption by Indian users. A recent survey by LocalCircles has revealed that the emergence of DeepSeek is driving a shift among Indian users. According to the survey findings, nearly 30 per cent of AI platform users in India have either switched to DeepSeek or are considering doing so soon.
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Also, 1 in 2 Indian internet users surveyed are already using AI platforms, and 66 per cent of those who use AI platforms is for finding information while 25 per cent users use them to summarise documents or other use cases. ChatGPT is the most widely used among those surveyed.
The survey indicates 18 per cent Indian AI users surveyed find information generated through AI platforms to be inaccurate and 36 per cent find it to be high in accuracy.
The survey, which gathered responses from 15,753 AI platform users, found that 8 per cent had already migrated to DeepSeek, while another 15 per cent were willing to switch unless other platforms started offering advanced features for free. Additionally, 8 per cent stated they would switch regardless of other factors, while 38 per cent remained loyal to their current AI platforms.
ChatGPT remains the most popular AI tool in India
The survey revealed that despite the growing interest in DeepSeek, OpenAI’s ChatGPT continues to be the most widely used AI platform in India. The survey, which received 15,377 responses, found that 28 per cent of respondents primarily use ChatGPT, followed by 9 per cent using Perplexity, 6 per cent relying on Co-Pilot via Bing, and 3 per cent using Gemini via Google. Notably, 40 per cent of respondents preferred traditional search engines like Google over AI-powered tools.
The data highlights that while AI adoption is on the rise, a significant portion of Indian internet users still rely on conventional search methods.
Accuracy of AI-generated information: Majority find it reliable
With AI platforms increasingly being used for information retrieval, the survey sought to understand user perceptions of accuracy. Among the 15,457 respondents, 36 per cent found AI-generated information to be highly accurate, with 8 per cent rating it as “extremely accurate” and 20 per cent as “mostly accurate.” Another 40 per cent found AI responses to be “somewhat accurate.”
However, 18 per cent expressed concerns over the reliability of AI-generated information, with 9 per cent stating it was “mostly inaccurate” and another 9 per cent finding it “quite inaccurate.” This indicates that while AI tools are gaining trust, there is still room for improvement in terms of data accuracy and reliability.
Text-Based AI interactions dominate over voice inputs
Despite the growing availability of voice-enabled AI assistants, Indian users overwhelmingly prefer text-based interactions. The survey found that 90 per cent of AI users primarily input their queries through text, while only 10 per cent use voice commands.
AI usage trends in India: Information retrieval takes the lead
The survey also examined the various ways in which Indians use AI tools. Among the 15,038 respondents, 66 per cent stated they primarily use AI for looking up information. Additionally, 25 per cent use AI to find information that is not easily accessible through traditional search engines, while another 25 per cent use AI tools for summarising documents.
Other popular use cases include writing assistance (9 per cent), image and video enhancement (9 per cent each), and other specialised applications (16 per cent). These findings indicate that AI is still largely viewed as an advanced search tool, rather than a full-fledged productivity assistant.
Paid AI Subscriptions: 3 in 10 Users Opt for Premium Services
While many AI platforms offer free services, a growing number of users are subscribing to premium features. The survey found that 30 per cent of AI users in India have a paid subscription, with 9 per cent subscribing to a single AI platform and 21 per cent paying for two or more platforms. However, a majority—70 per cent—continue to rely on free AI services.
The future of AI in Mumbai
The findings indicate that AI adoption in Mumbai is growing rapidly, with 62 per cent of internet users in the city already utilising AI platforms. As AI technology continues to evolve, platforms offering free advanced features, like DeepSeek, may challenge established players like ChatGPT, Gemini, and Perplexity.
When asked if DeepSeek can challenge established AI chatbots like ChatGPT and Gemini in the competitive AI landscape, Sachin Taparia, the founder of LocalCircles told Mid-Day, “From an India context, I see DeepSeek being a challenger to other established AI platforms if they offer a better or at par intelligent model and premium services available to users without a paid subscription or one that is significantly lower cost.
Shedding light on what are the biggest technical or ethical challenges new AI models like DeepSeek face in gaining user trust, the LocalCircles founder said, “The biggest challenge I see is keeping the model focused on truth and bias-free while keeping pace with latest innovations. This is critical to long-term user trust and usage.”
When asked if AI models become more sophisticated and what risks users should be aware of, Taparia said, “I see AI being an excellent mechanism that will improve productivity and earnings for those using it. At the same time, the risks of cyber fraud, financial crimes, impersonation or image/video misuse will rise. People will also start demanding better safety from their banks, brokerage platforms, etc.”
Expert speaks:
Akshat Khetan, a cyber-legal expert and Founder of AU Corporate Advisory and Legal Services (AUCL), said that independent research on AI usage in Mumbai is still sparse. However, surveys such as LocalCircles might provide valuable insights.
"AI-powered tools are becoming increasingly popular, yet many users continue to rely on traditional search engines. More localized research is needed to better understand uptake across populations. As AI integration grows, tracking usage trends will help businesses and policymakers make more educated decisions," Khetan said.
Speaking about gaining popularity of DeepSeek, Khetan said, "DeepSeek has the ability to compete, but it confronts stiff competition from ChatGPT, Gemini, and Co-Pilot, who have established user bases and brand confidence. To compete with these platforms, DeepSeek must provide higher accuracy, real-time information access, and regional language support. Differentiation through innovation, cost, and smooth interfaces may help it establish market momentum. However, without significant technology breakthroughs or distinguishing qualities, competing with industry leaders will be tough."
He further said that new AI models must overcome technical challenges like accuracy, contextual understanding, and reducing bias. Ethical concerns include misinformation, data privacy, and transparency in AI-generated content. "Users may hesitate to trust new platforms without clear policies on responsible AI use. Additionally, AI’s susceptibility to manipulation and DeepSeek generation remains a concern. Overcoming these challenges requires strong governance, accountability, and user awareness initiatives," Khetan added.
While speaking about risks users can face in future, the cyber-legal expert said that while AI improves productivity, it also introduces hazards such as misinformation, privacy breaches, and security vulnerabilities. "Overreliance on AI for decision-making may result in diminished human oversight and critical thinking. AI-powered automation may also affect professions, necessitating skill adaptability. Ethical considerations include AI output biases and the possibility of harmful use, such as DeepSeek scams. Responsible AI regulation and user knowledge are critical for mitigating hazards," Khetan added.
The cyber-legal expert said that users should be wary of misinformation, biased AI replies, and data privacy concerns. "AI-generated content may appear persuasive, but it can also be deceptive or wrong. Increased automation may lead to job displacement in certain industries. Cyber threats, including AI-powered scams and DeepSeek technology, are growing concerns. Staying informed and critically evaluating AI-generated material will be essential for safe and responsible AI use," Khetan added.
Methodology and insights on LocalCircles survey execution:
1) What is LocalCircles?
LocalCircles is a community social media platform that enables citizens and small businesses to escalate issues for policy and enforcement interventions and enables the Government to make policies that are citizen-and small-business-centric.
2) How was the survey carried out? Who were the respondents? And what was the statistical margin of error?
This national survey on artificial intelligence usage was conducted using the proprietary LocalCircles stratified sampling methodology. With a minimum target of 25per cent participation from three location groups (Tier 1, Tier 2 and Tier 3-5 and rural districts) on each poll, all polls were run. After the minimum participation criteria were met, all polls were run till they achieved a steady state. Post achievement of steady state, the LocalCircles system using the bootstrapping technique drew additional samples to test for the margin of error. All polls were found to have a margin of error under 3per cent and a confidence level of over 97 per cent.
The survey received over 92,000 responses from citizens located in 309 districts of India. For Mumbai, over 12,000 responses.
64 per cent of respondents were men, while 36 per cent of respondents were women. 45 per cent of respondents were from tier 1, 31 per cent from tier 2, and 24 per cent of respondents were from tier 3, 4, 5 and rural districts. The survey was conducted via the LocalCircles platform, and all participants were validated citizens who had to be registered with LocalCircles to participate in this survey.
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