Starting this week, millions of Indians will gain free access for one year to ChatGPT's new, low-cost AI chatbot, called "Go." This initiative is part of a growing trend in India, where major global tech companies are partnering with local telecom providers to bundle AI tools with mobile data plans, offering consumers extended periods of complimentary or discounted access. Similar recent moves include collaborations between Google and Reliance Jio, India’s largest telecom operator, and Perplexity AI’s partnership with Airtel, the country’s second largest network. These arrangements reflect a strategic push by technology giants to establish a foothold in India’s rapidly expanding digital market.
Analysts caution that these offers should not be mistaken for simple generosity. Instead, they see them as calculated investments aimed at capturing a significant share of India’s vast and youthful online population. Tarun Pathak, an analyst at Counterpoint Research, explains that the objective is to "get Indians hooked on generative AI before asking them to pay for it." Given India’s enormous scale and demographic advantage, these companies are betting on the country’s potential to drive long-term growth in AI usage. While China may have a comparable number of internet users, its tightly regulated tech environment restricts access for foreign companies. India, on the other hand, offers a more open and competitive digital ecosystem, making it an attractive market for global AI developers.
India boasts over 900 million internet users, many of whom are under 24 years old. This young generation is deeply immersed in digital life, relying on smartphones to live, work, and socialize online. The country also benefits from some of the world’s cheapest mobile data, encouraging heavy internet consumption. By bundling AI chatbot tools with mobile data packages, tech companies tap into this massive data consumption, creating a huge opportunity to gather valuable user data that can be used to train and improve AI models.
Pathak notes that India’s diversity makes it an especially interesting market for AI development. The wide range of languages, cultures, and user behaviors means that the AI use cases emerging from India could serve as important case studies globally. The richer and more diverse the data these companies collect, the better their generative AI systems can become. This dynamic creates a mutually beneficial relationship: consumers get free or low-cost AI services, while companies gain access to unique data that enhances their technology.
However, these free offerings also raise important questions about privacy and data protection. Consumers may be willing to exchange personal data for free services, but this trend underscores the need for effective regulation. Prasanto K Roy, a technology writer and analyst based in Delhi, points out that most users have historically been willing to trade privacy for convenience or cost savings, and this pattern is likely to continue. But he stresses that government intervention is crucial. Without clear rules and oversight, there is a risk that people could unknowingly give away sensitive information or be exposed to other harms.
Currently, India does not have a dedicated law specifically governing artificial intelligence. The country’s broader Digital Personal Data Protection Act (DPDP) 2023, which addresses digital privacy and data protection, has yet to be enacted. Experts acknowledge that while the DPDP introduces important safeguards around personal data, its implementation details remain pending, and it does not specifically cover AI systems or ensure algorithmic accountability. When enacted, however, the act is expected to become one of the most advanced digital privacy laws globally, according to Mahesh Makhija, a technology consulting leader at Ernst and Young.
Until such regulations are firmly in place, India’s relatively flexible legal environment allows companies like OpenAI, Google, and Perplexity AI to bundle AI tools with telecom data plans in a way that might be difficult or impossible in other jurisdictions. For example, the European Union’s AI regulations impose strict requirements regarding transparency and data governance, while South Korea’s upcoming rules mandate clear labeling of AI-generated content and hold operators accountable for how their systems are used. In these regions, launching free or bundled AI services would trigger extensive compliance obligations related to user consent and privacy protection, complicating efforts to scale such offers quickly.
Roy emphasizes that India needs both greater user awareness about data privacy and clearer regulatory frameworks, but warns against overly stringent rules that could stifle innovation. “At this point, we need light-touch regulation, but that will have to evolve as the extent of potential harm becomes clearer,” he says. Striking the right balance between protecting consumers and encouraging technological advancement will be critical as AI adoption acceler