PRCAI study sees India’s PR industry reach Rs 3,230 crore

MUMBAI: In the age of AI, PR is learning an old lesson with a new twist, it is easier to generate noise than to earn trust. The Indian public relations industry is entering a new phase where reputation, strategic counsel and human judgement are becoming as important as reach, according to the third edition of PRCAI’s Study of Public Relations Insights, Nuggets and Trends (SPRINT) 2026.

The study, based on 143 respondents from across the PR industry and conducted by Ipsos, with PRCAI working with strategic communications research firm Astrum, maps how AI, changing media habits, talent requirements and the growing business value of reputation are reshaping the profession.

India’s PR industry grew 11 per cent in FY2026 to Rs 3,230 crore (US$361 million), giving it a 12.6 per cent share of the Asia-Pacific PR market. That growth, however, comes against a decade-long 12 per cent CAGR, signalling that the industry is beginning to mature. The report projects the market at Rs 3,500 crore in FY2027 and Rs 4,500 crore by FY2030.

Globally, PR revenues stood at Rs 2,13,700 crore (US$23.7 billion) in 2025, up 6 per cent from 2024, while Asia-Pacific accounted for Rs 25,650 crore (US$2.8 billion), or 12 per cent of the global market. The US remains the industry’s largest market, accounting for more than half of global PR revenues.

The Indian market itself remains top-heavy. Four giant firms, eight large firms and 22 mid-sized firms form the top tier, while there are more than 145 emerging firms and 500-plus micro consultancies. Twelve firms collectively control about 70 per cent of the market, although mid-sized firms are growing fastest at 16 per cent.

AI is rapidly moving from experiment to everyday infrastructure. Investment in AI among PR consultancies has risen from just 2 per cent of budgets three years ago to nearly 7 per cent today, with that figure expected to reach 10 per cent in three years. 61 per cent of consultancy heads believe big data and AI adoption will contribute to industry growth.

The technology is already being used across the workflow. 77 per cent of respondents cite research and intelligence gathering, 73 per cent written content creation, 66 per cent note-taking and meeting summaries, and 55 per cent each visual content creation, creating multiple content versions and ideation. Social listening stands at 45 per cent, data analytics at 43 per cent, media pitches at 36 per cent, media monitoring at 25 per cent, proof-of-concept testing at 23 per cent and project management at 16 per cent. Only 5 per cent say they are not currently using AI.

Yet the report is hardly a victory lap for machines. 61 per cent of PR consultancy heads and corporate communicators say AI is reshaping and commoditising creativity, while 85 per cent believe AI governance frameworks will soon become mandatory for PR. The study also flags concerns around originality, transparency and trust, making human review and judgement increasingly important.

That concern becomes sharper when reputation enters the picture. 80 per cent of respondents say AI-generated misinformation and deepfakes present a reputational risk, while 46 per cent of corporate communicators said they had faced fake news in 2025-26, up from 28 per cent in 2024-25.

At the same time, AI is changing where audiences discover information. 83 per cent say earned media is gaining importance as large language models make content discoverable, while 70 per cent see generative engine optimisation (GEO) becoming an important PR practice. 46 per cent say AI is making data-led earned storytelling a core differentiator.

Trust is also taking a hit when paid content is dressed up as earned media. 66 per cent believe this practice is eroding audience trust, while 51 per cent say brands are shifting investment towards earned and organic media. The report’s broader conclusion is that in an AI-led information environment, authority matters more than sheer volume.

The business case for reputation is equally strong. 96 per cent of respondents believe PR builds investor confidence and customer loyalty, 92 per cent say it strengthens stakeholder relationships, 83 per cent link it to greater crisis resilience and 75 per cent connect strong reputation management with long-term revenue growth.

That is pushing PR closer to the boardroom. 77 per cent of corporate communicators report rising demand for deeper analysis and strategic recommendations beyond data reports, while 46 per cent see PR playing a business-driver and problem-solving role. 43 per cent say CEOs are leveraging PR for external strategic perspective, and another 43 per cent say PR advisors are evolving into C-suite strategic partners.

The money is following. PR’s share of marketing budgets rose from 12 per cent in FY2025 to 14 per cent in FY2026. Meanwhile, 98 per cent say multi-channel strategies are increasingly relevant in the creator economy, 58 per cent say PR’s role is expanding into marketing performance outcomes such as click-throughs and sales, and 53 per cent believe PR is gaining share from advertising and digital agencies as demand for integrated solutions grows.

The business model is changing too. 84 per cent of PR consultancy heads use hybrid retainer-plus-project models for select clients, while 53 per cent say pure retainers still persist among some clients. 63 per cent believe project-based engagements expand scope and drive revenue. Events account for 91 per cent of high-revenue project work, followed by product and brand launches at 73 per cent, thought leadership at 64 per cent, influencer campaigns at 55 per cent and crisis management at 45 per cent.

Regional India is another growth story. North India currently accounts for 37 per cent of PR revenues, followed by West at 19 per cent and South at 16 per cent. But the report expects regional PR’s overall share to rise from 10 per cent three years ago to 19 per cent currently and 25 per cent in three years. 91 per cent say cultural nuances are essential for tailored PR, 84 per cent see regional storytelling gaining importance, 82 per cent say regional PR helps mitigate crises through early local awareness, and 77 per cent want brands to explore hyperlocal storytelling.

Influencer marketing is moving in the same direction. Its share of Indian PR has doubled from 8 per cent three years ago to 16 per cent currently, with the report projecting 22 per cent in three years. 86 per cent see regional influencers and local dialects gaining traction, 78 per cent see Tier 2 and 3 creators rising, 98 per cent see a growing need to verify and regulate influencer content, and 80 per cent want greater accountability for business outcomes. 68 per cent prefer key opinion leaders over influencers, while another 80 per cent see micro-influencers as important for niche markets.

Talent, meanwhile, may be the industry’s biggest human test. 93 per cent of respondents say continuous upskilling and on-the-job training are essential, 80 per cent consider domain knowledge essential and 77 per cent believe being ‘uni-skilled’ is no longer sufficient. 40 per cent say PR mandates are increasingly being split across multiple consultancies. At the same time, 82 per cent say insufficient understanding of a client’s business affects strategic thinking, while 75 per cent identify writing skills as a major challenge among emerging and mid-level professionals.

The workplace itself is shifting. Only 30 per cent of PR professionals currently work from office five days a week, while 56 per cent follow a three-to-four-day hybrid model, 8 per cent work from office one or two days, 3 per cent are completely remote and 3 per cent have flexible employee-choice arrangements. While 50 per cent of PR consultancy heads support a return to five-day office work, 77 per cent of talent do not.

For PRCAI, the answer is not to compete with AI on speed but to make the human side of communications more valuable. The report calls for stronger measurement standards, professional conduct, business understanding, AI fluency and strategic capability. 92 per cent of corporate communicators want a standardised measurement framework, although fewer than half have dedicated measurement budgets.

In short, SPRINT 2026 paints an industry caught between automation and authenticity. AI may write the first draft, find the data and scan the conversation, but reputation still has to be earned the old-fashioned way with judgement, credibility and a story people believe.