Major artificial intelligence firms are ending promotional free access in India, setting up a crucial test of their ability to convert the world's fastest-growing user base into paying subscribers. The shift comes after a year of aggressive user acquisition in the price-sensitive market, which became the largest for generative AI app downloads in 2025.
According to data from market intelligence firm Sensor Tower shared with TechCrunch, India accounted for roughly 20% of global GenAI app downloads last year, widening its lead over the United States. Installations jumped 207% year-over-year in 2025.
Promotional Push Winds Down
Companies including OpenAI, Google, and Perplexity had rolled out extended free premium offers to accelerate growth. However, these promotions are now concluding. Perplexity ended its bundled Pro offer with Indian telecom giant Airtel in January, while OpenAI's free ChatGPT Go access in India is no longer available.
"The promotional push in India reflects a broader strategy by AI firms to reduce pricing friction in a highly value-conscious market," said Sneha Pandey, insights analyst at Sensor Tower. She explained the bet is that early user adoption will translate into stronger long-term retention once free access expires.
The Revenue Challenge
Despite the surge in downloads, monetisation remains a significant hurdle. Sensor Tower data indicates India generates only about 1% of global AI app in-app purchase revenue, despite driving approximately one-fifth of downloads. This disparity highlights the unique challenge of the Indian market.
Revenue trends in late 2025 underscored the impact of free offers. In November and December, AI app in-app purchase revenue in India fell 22% and 18% month-over-month, respectively. Following the launch of its free tier, ChatGPT's revenue dropped even more sharply—down 33% and 32% over the same period.
Market Leaders and User Engagement
ChatGPT continues to dominate the Indian landscape. It commanded over 60% of GenAI in-app revenue in India and was the most downloaded app globally and in India in 2025. As of January 2026, it had 180 million monthly active users (MAUs) in the country, according to Sensor Tower.
Other key players include Google's Gemini with 118 million MAUs, Perplexity with 19 million, and Meta AI with 12 million. India accounted for about 19% of the global user base for leading AI assistant apps in 2025, ahead of the U.S. at 10%.
However, user engagement in India still trails more mature markets. Sensor Tower data shows users in the U.S. spent about 21% more time per week on leading AI chatbot apps and logged 17% more sessions on average than their Indian counterparts in 2025.
Future Outlook and Strategies
Analysts suggest that converting India's massive digital base—over a billion internet users and around 700 million smartphone owners—into a sustainable revenue stream will require tailored strategies. "Pricing pressure in India is likely to remain elevated given the country’s young and value-conscious user base," Pandey told TechCrunch.
She emphasised that lower-cost tiers, telecom bundles, and micro-transaction models will be important for long-term retention. "AI in-app revenues will likely see meaningful but gradual improvement as users become more deeply integrated into these platforms, making sustained engagement paramount."
The focus on India was underscored last week at a major AI summit in New Delhi, attended by industry leaders including OpenAI’s Sam Altman, Anthropic’s Dario Amodei, and Alphabet CEO Sundar Pichai, signalling the country's growing strategic importance in the global AI race.