Global Artificial Intelligence City Index 2025

Relevance:  

Prelims: Important Reports & Indices and AI-based initiatives and global city rankings involving Indian cities
Mains – GS Paper 3: Role of AI in smart urban governance and innovation, Significance of public–private collaboration in AI infrastructure and Policy and regulatory gaps in AI governance in India

Context:

Recently, Global Artificial Intelligence City Index was published by Counterpoint Research (market intelligence firm) in which Bengaluru from India  has secured the 26th position globally, becoming India’s leading hub for artificial intelligence research, development, and data centre infrastructure.

Global Highlights Top 5 Cities in the Global AI City Index 2025: Singapore Seoul Beijing Dubai

About the Index

What it is:
A global benchmarking report that assesses the AI capabilities of cities based on innovation, investment, infrastructure, and real-world applications.

• Published by:
  Counterpoint Research, a global market intelligence firm.
• Objective:
  To identify and rank cities that are driving AI advancements through R&D, digital infrastructure, public policy, and innovation ecosystems.

Evaluation Criteria

1. Investment inflow and public–private collaborations
2. AI-focused education and skill development programmes
3. Strength of the AI R&D ecosystem
4. Use of AI in transport, healthcare, education, etc.
5. Expansion of data centres and digital infrastructure
6. Number of startups and innovation hubs

  Features

• Recognises fast-emerging AI cities like Bengaluru, Riyadh(Saudi Arabia), Hangzhou(China)
• Emphasises AI-driven innovations in urban governance, such as:
  • Smart traffic management
  • Predictive policing and safety
  • AI in healthcare diagnostics
  • AI-assisted education tools

India’s Performance

• Bengaluru:
  • Ranked 26th globally – highest among Indian cities
  • Recognised for a robust startup ecosystem, skilled workforce, and data infrastructure
• Mumbai & Delhi:
  • Applying AI in traffic control and public safety
  • Significant potential for expansion
• Other Indian Cities:
  • Chennai and Kolkata also feature prominently in the national AI ecosystem
• Challenges Highlighted:
  • Need for a comprehensive national AI roadmap
  • Urgent requirement for clear regulatory frameworks to guide AI deployment in India

Conclusion

India’s rising AI presence, led by Bengaluru’s global 26th rank, reflects strong potential in innovation and infrastructure. However, to sustain this growth, India must focus on a comprehensive AI policy, regulatory clarity, and strengthened public–private partnerships.

Prelims practice question Q. With reference to the Global Artificial Intelligence City Index 2025, consider the following statements: 1- The Index is published by the World Economic Forum to assess countries’ preparedness for artificial intelligence deployment. 2 – Bengaluru is the only Indian city to feature in the top 30 global rankings. 3 – The index evaluates cities on parameters such as AI R&D ecosystem, startup strength, data infrastructure, and public–private partnerships. Which of the above statements is/are correct?   A) 1 and 2 only  B) 2 and 3 only  C) 3 only  D) 1, 2 and 3                                                 Mains practice question Q. Discuss the significance of the Global AI City Index 2025 findings for India, and suggest steps to address the challenges in creating a robust AI policy and regulatory framework.                                                                                                      15 marks (250 words)