India has emerged as the world’s fastest-growing market for generative AI, with app downloads skyrocketing 207% in 2025, according to Sensor Tower. Tech giants such as OpenAI, Google, and Perplexity rolled out extended free premium offers to capture the country’s price-sensitive users, while supporting India’s ambition to become a global AI hub. Last week’s AI summit in New Delhi, attended by leaders like OpenAI’s Sam Altman and Alphabet CEO Sundar Pichai, highlighted the nation’s growing influence in the global AI race.
However, the era of free AI access in India is starting to wind down. Perplexity recently ended its bundled Pro offer with Airtel, and OpenAI’s ChatGPT Go free access is no longer available. These moves will test whether millions of newly acquired users will convert into paying subscribers, as companies shift from prioritizing user growth to building sustainable revenue streams.
Despite India driving roughly 20% of global GenAI app downloads, its contribution to AI in-app revenue remains minimal, accounting for just 1% of total purchases. Data from Sensor Tower shows that aggressive promotions temporarily boosted adoption but suppressed revenue: ChatGPT’s monthly revenue fell by over 30% following the launch of sub-$5 free ChatGPT Go access. This underscores the monetization challenge that AI firms face in a market where affordability is a key concern.
The surge in India’s AI adoption has been fueled by new product launches like DeepSeek, Grok, and Meta AI, alongside upgrades to platforms such as ChatGPT, Gemini, and Claude. Viral interest in AI-generated content has made creation and editing apps especially popular, accounting for seven of the 20 most downloaded GenAI apps in 2025. With 19% of the global AI assistant user base, India now surpasses the U.S. in monthly active users, highlighting the market’s vast potential.
Analysts warn that while India offers scale, sustained revenue growth depends on deeper user engagement. Users in India still spend less time on AI apps compared to more mature markets, making retention strategies like telecom bundles, low-cost tiers, and micro-transactions critical. ChatGPT remains the market leader with 180 million monthly active users, followed by Google’s Gemini and Perplexity, illustrating both the enormous opportunity and the challenge of turning user adoption into profitability.
source: Techcrunch