India’s digital identity boom shadowed by AI trust concerns: Okta Report

Okta’s 2025 report finds 82% of Indians still prefer passwords, 76% worry about AI’s role in identity, and 67% trust businesses with their data, highlighting rising digital trust tensions.

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DQC Bureau
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India’s digital identity boom shadowed by AI trust concerns: Okta Report

India’s rapid digital adoption continues to outpace global trends, but consumers are also navigating rising tensions around identity security and artificial intelligence. This is the key insight from Okta’s 2025 Customer Identity Trends Report, based on a survey of 750 Indian respondents as part of a broader nine-country study by Statista.

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Despite the tech industry’s push toward modern login systems, 82 per cent of Indian users still find passwords most convenient, making them the dominant choice for authentication. However, 55 per cent now use fingerprint scans and 35 per cent rely on Face ID, indicating a growing shift toward biometric solutions.

The report also notes that 20 per cent of Indian users reuse the same password across personal accounts, exposing a major security loophole despite high awareness levels. Government ID-based verification (e.g., Aadhaar) and SMS authentication remain widely accepted, with convenience scores of 54 per cent and 44 per cent, respectively.

Trust is high, but so is fear

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Indian consumers exhibit higher-than-global trust in businesses handling personal data.

  • 67 per cent trust companies (vs 50 per cent globally)

  • 79 per cent trust banks

  • 73 per cent trust tech firms

  • 70 per cent trust government agencies

Yet, 81 per cent remain concerned about identity fraud, far above the global average of 63 percent. This reveals a paradox—strong confidence in institutions, but deep anxiety over digital risks.

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When it comes to artificial intelligence, Indian consumers are split.

  • 65 per cent value AI’s 24/7 speed and convenience

  • 76 per cent still prefer human representatives

  • 76 per cent worry about AI’s impact on digital identity

Interestingly, 64 per cent of users are comfortable sharing health data with AI agents, and 49 per cent would even share financial information, both significantly above global averages. But 19 per cent of Indians distrust AI agents outright.

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Users are demanding more accountability:

  • 54 per cent want clear privacy and ethics policies

  • 49 per cent seek transparency in how AI makes decisions 

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