Starting this week, millions of Indians will get one year of free access to ChatGPT’s new “Go” AI chatbot, a lightweight version designed for affordable, mass-market use. The announcement marks a major step in OpenAI’s push to reach emerging markets, particularly India, which already has one of the world’s largest internet user bases.
The move comes close on the heels of similar partnerships by Google and Perplexity AI, both of which have teamed up with Indian telecom giants to bundle AI services with mobile data plans. Perplexity AI partnered with Airtel, India’s second-largest mobile network, while Google joined hands with Reliance Jio, the country’s biggest operator, to offer free or discounted access to its AI tools.
Analysts say these collaborations are less about altruism and more about long-term strategy. As Tarun Pathak, research director at Counterpoint Research, told the BBC, “The plan is to get Indians hooked on to generative AI before asking them to pay for it. What India offers is scale and a young audience.”
India’s massive digital base attracts AI giants
India’s digital ecosystem offers irresistible opportunities for AI companies. With over 900 million internet users, cheap mobile data, and a predominantly young, tech-savvy population, the country is one of the most fertile grounds for digital adoption.
Most of India’s internet users are under 24 years old — a generation that lives, studies, and socialises online. This makes India a natural testing ground for AI companies seeking both large-scale usage data and diverse user behaviour patterns.
According to analysts, bundling AI services with telecom plans enables companies to tap into real-time, first-hand data while offering consumers new tools for productivity, entertainment, and education. “India is incredibly diverse,” said Pathak. “The AI use cases emerging from here will serve as valuable case studies for the rest of the world. The more unique data these companies gather, the better their generative AI systems will become.”
Data privacy concerns amid free AI boom
While these offers appear attractive, experts warn they raise serious questions about data privacy and long-term user protection. Delhi-based technology analyst Prasanto K Roy says, “Most users have always been willing to give up data for convenience or something free, and that will continue. But this is where the government will have to step in.”
India currently lacks a dedicated law governing artificial intelligence. The Digital Personal Data Protection (DPDP) Act 2023, passed earlier this year, introduces broad protections around personal data but has yet to be implemented. Experts say the act does not specifically address AI systems, algorithmic transparency, or accountability.
According to Mahesh Makhija, technology consulting leader at Ernst & Young, once enacted, “it will probably be one of the most advanced digital privacy laws globally.” Until then, India’s flexible regulatory landscape allows companies like OpenAI and Google to roll out AI-enabled telecom bundles with minimal bureaucratic friction.
Why India’s market is different from the West
Globally, AI firms face stringent compliance hurdles that make such large-scale giveaways difficult. The European Union’s AI Act, for instance, enforces transparency standards and strict data governance norms. South Korea’s upcoming AI rules will go further, requiring labels on AI-generated content and holding companies accountable for system misuse.
In contrast, India’s relatively open environment provides a low-regulation testing ground where companies can experiment with user engagement and monetisation models. Analysts say this flexibility is part of the reason India has often been a launchpad for global digital innovation, similar to how the country’s low-cost internet revolutionised mobile data access a decade ago.
A calculated bet on India’s AI future
Industry experts agree that these free offers are strategic investments designed to familiarise Indians with generative AI tools before introducing premium models. OpenAI’s ChatGPT Go, for instance, is expected to appeal to budget-conscious users in Tier 2 and Tier 3 cities, expanding AI use beyond major metros.
Analysts predict that even a small conversion rate could yield massive returns. “If just 5% of free users become paying subscribers, that’s still a significant number,” said Pathak. With over 900 million potential users, the scale alone makes India a critical market for AI monetisation.
However, experts caution that India’s growing appetite for AI will require clearer regulations to protect consumer interests without stifling innovation. “At this point, we need light-touch regulation, but it must evolve as the extent of potential harm becomes clearer,” said Roy.
Conclusion
India’s entry into the global AI race highlights its growing influence in the digital economy. With billions of data points and a young, online-first population, the country represents both an opportunity and a challenge for global AI players. While free access to tools like ChatGPT Go promises to democratise AI adoption, the absence of strong privacy protections leaves users exposed — a gap the government will need to address as India’s AI revolution accelerates.