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India's 900 million internet users get free AI tools in global tech push
Millions of Indians will gain one year of free access to OpenAI's newly launched ChatGPT Go chatbot starting this week, as global tech firms race to secure a foothold in the world's fastest-growing digital market.
The initiative mirrors recent moves by Google and Perplexity AI, which have struck partnerships with India's top telecom providers-Airtel and Reliance Jio-to bundle free or discounted AI tools with mobile data plans. Analysts describe the strategy as a calculated bet on India's long-term digital growth rather than short-term generosity.
Why India?
With over 900 million internet users-most under 24-India offers unmatched scale and a tech-savvy youth demographic, according to Tarun Pathak of Counterpoint Research. Unlike China, where strict regulations limit foreign tech access, India's open digital economy presents a rare opportunity for AI companies to gather diverse, first-hand data to refine their models.
"The plan is to get Indians hooked on generative AI before asking them to pay for it," Pathak told the BBC, noting that even a 5% conversion rate from free to paid users would yield significant returns.
India's low-cost data plans and skyrocketing consumption-among the highest globally-make it an ideal testing ground for AI applications, from education to e-commerce. "Use cases emerging here will serve as case studies for the world," Pathak added.
Data privacy concerns loom
While the free offerings benefit companies, experts warn of risks for users. Prasanto K Roy, a Delhi-based tech analyst, noted that Indians have historically traded data for convenience-a trend likely to continue with AI tools. However, he stressed the need for stronger regulations as adoption grows.
India's Digital Personal Data Protection Act (DPDP) 2023 provides a framework for digital privacy but lacks specific AI governance rules. Mahesh Makhija of Ernst & Young called the pending law "potentially one of the most advanced" for digital privacy but acknowledged gaps in addressing algorithmic accountability.
"Regulation will need to increase as authorities grapple with users freely giving away data," Roy said, advocating for "light-touch" rules that balance innovation with consumer protection.
Regulatory flexibility vs. global standards
India's current regulatory environment allows companies like OpenAI and Google to bundle AI tools with telecom plans-a maneuver far harder in regions with stricter rules. The EU's AI Act and South Korea's incoming regulations impose transparency and consent requirements that would complicate such mass rollouts.
For now, global firms are leveraging India's flexibility to replicate the success of past strategies-like discounted data plans-that onboarded millions of users. "AI is unlikely to follow a heavily monetized model," Pathak said, "but even modest subscription rates here translate to massive scale."
What's next?
As free access expands, observers expect debates over data ownership, consent, and AI ethics to intensify. OpenAI, Google, and Perplexity AI did not respond to requests for comment on their long-term plans for India.
