Global technology giants are racing to tap India’s vast digital base, offering premium artificial intelligence tools to millions of users for free or at subsidised rates.
Starting this week, millions of Indians will get one year of free access to ChatGPT’s new low-cost “Go” chatbot — part of a broader trend where AI firms are collaborating with Indian telecom companies to expand their footprint. Google and Perplexity AI have announced similar partnerships, bundling free or discounted AI access with monthly data packs.
Perplexity has tied up with Airtel, India’s second-largest mobile network, while Google has joined hands with Reliance Jio, the country’s biggest telecom operator. Industry observers say the offers are not acts of generosity but strategic investments in India’s fast-growing digital ecosystem.
Analysts note that the strategy aims to build user dependency on generative AI before introducing paid models. One analyst pointed out that companies view India as a crucial market because of its scale and youthful demographics. While China may rival India in numbers, he said, its tightly controlled tech landscape restricts access for global players. India, in contrast, provides an open, competitive digital space, offering fertile ground for companies seeking to train their AI models on diverse user data.
India has more than 90 crore internet users and some of the world’s cheapest mobile data. Most users are under 24, forming a generation that lives, works and socialises online. For AI companies, bundling their products with data plans allows access to massive usage volumes and valuable real-world data. Another analyst said India’s linguistic and cultural diversity makes it an ideal test bed for developing new AI applications, helping firms refine their systems for global markets.
However, the data-driven expansion has sparked privacy concerns. One technology analyst observed that Indian consumers have long been willing to trade personal data for free digital services, a trend likely to continue unless stronger safeguards are introduced. He said the government will need to step up regulatory oversight as people increasingly share sensitive information with AI systems.
India currently lacks a dedicated AI law. The Digital Personal Data Protection Act, passed in 2023, is yet to be fully implemented and does not specifically address AI or algorithmic accountability. Once enacted, the law could become one of the most advanced globally from a digital privacy standpoint.
For now, India’s relatively flexible regulations make it easier for companies like OpenAI and Google to bundle AI tools with telecom services — something difficult to achieve in regions such as the European Union or South Korea, where stringent transparency and data governance rules apply.
Experts agree that India will need a balanced approach — encouraging innovation while ensuring accountability. They suggested that the country currently requires light-touch regulation, which can later evolve as risks become clearer.
Until then, AI firms hope India’s experience with cheap internet and mass digital adoption will repeat itself. Even if only a small fraction of free users eventually convert to paid subscribers, analysts say, the sheer numbers will make India one of the most valuable AI markets in the world.