Aug 27: Despite the growing weight of Artificial Intelligence in strategic decisions, as many as 57 percentage office occupiers in India say that it has no material impact on their leasing decisions, according to CBRE South Asia Pvt. Ltd.’s 2026 India Office Occupier Survey. About 93 percentage of the over 200 occupiers surveyed said that they are at some stage of AI implementation.
About 59 percentage of the firms remain in early or exploratory phases, indicating that they are laying down the foundation – testing proof-of-concepts and mapping out systemic changes before fully committing capital and restructuring physical assets.
For a third of the cohort, AI is at an advanced or scaled adoption stage, driving immediate changes in how talent is deployed and physical workspaces are utilised, the report said.
Minimal AI Impact on leasing
While a majority of firms do not expect a material impact of AI on their leasing strategies, the focus is likely to be on high-quality workplaces that support talent attraction, innovation, and advanced technology requirements. A large proportion of organisations are likely to plan their real estate decisions based on their workforce dynamics and business impact of their AI strategies.
At the same time, a section of occupiers anticipate AI creating new opportunities for workforce growth as organisations scale emerging capabilities and technology-led functions.
“While AI adoption is becoming increasingly widespread, business maturity and the pace of deployment will ultimately determine its impact on workforce requirements and, consequently, future leasing decisions,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. “As organisations continue to transition from experimentation to scaled implementation, the implications for headcount, workplace strategies, and space demand are likely to evolve over time.”
Ram Chandnani, Managing Director, Leasing Services, India, CBRE said,
“While AI is increasingly shaping discussions around workplace and real estate strategy, occupiers are yet to reach definitive conclusions on its impact on space requirements. The flight-to-quality trend remains firmly intact, with premium workplaces continuing to play a critical role in attracting and retaining talent. In effect, AI is influencing the type of space occupiers seek well before it alters the quantum of space they require.”
The report added that around 64% firms maintain a neutral-to-positive view of AI’s effect on their workforce. Among GCCs, this trend is more visible. Around 95% of these occupiers said they are at some stage of AI adoption.
The Indian office market has been consistently setting new benchmarks, recording heightened leasing activity over the past two-and-a-half years, with office stock surpassing the 1 billion sq. ft. milestone during April-June 2026. Notably, this has unfolded amid intensifying global uncertainties and the transformative influence of AI.
Furthermore, the strategic importance of the physical workplace has never been more firmly established. About 77% of surveyed occupiers reported office utilisation rates above the 50% mark, the workplace remains the definitive foundation for corporate culture, collaboration, and productivity. Part 1 of “Inside the Occupier Mind”, released earlier this month, reported that the share of occupiers targeting a ‘significantly’ larger office footprint has grown to 30%, compared to 18% in last year’s survey. With about 77% expecting their India portfolio to grow over the next two years – expansion intent that has held despite the growing prominence of AI in occupier planning.