Why Are Tech Companies Giving Premium AI Tools Free To Indian Users? Millions of Indians have been able to use ChatGPT’s new, affordable ‘Go’ AI chatbot for free for a year since the first week of November. ChatGPT’s move comes after competitors like Google and Perplexity AI started giving away premium AI tools for free.
Technology analysts have interpreted this as a strategic investment in India’s vast digital market, not a gesture of generosity from the company.
These partnerships provide free or discounted access to AI tools along with monthly data packs. “The plan is to get Indians addicted to generative AI before they have to pay for it,” Counterpoint Research analyst Tarun Pathak told the BBC. According to Pathak, India offers tech companies a huge market and a young user base.
While other large markets like China have a large user base, strict government controls there limit access for foreign companies. In contrast, India is an open and competitive digital market. That’s why global tech companies are using millions of new users here to train their AI models.
Providing AI tools along with data packs creates a huge opportunity for companies. The more Indians use these platforms, the more direct data the company gets. India is a diverse country. The AI applications that emerge from here can be valuable studies for the rest of the world,” says Pathak.
According to him, the government should intervene in such a situation. India does not yet have any specific law regulating Artificial Intelligence (AI). Although the Digital Personal Data Protection Act 2023 on digital media and privacy has been enacted, it has not been implemented.
This flexible regulatory environment in India has made it easier for companies like OpenAI and Google to distribute free AI tools here than in other countries.
For now, the global AI company aims to replicate its past success of attracting millions of new users online by offering affordable internet data in India through these free features.
“For example, even if only 5 per cent of free users become paid customers, the number will be very large,” Pathak said.
Nepalis forced to pay when neighbouring countries have free internet!
OpenAI’s cheap paid version of ChatGPT, ‘ChatGPT Go’, is available in some developing countries, including Nepal, targeting Indian users. While this tool is free in neighbouring India, Nepal has to pay $5 per month for it. In India, to access this feature for free, you must add a UPI or credit card. However, since this payment system is limited to India, it is difficult to use it from Nepal.
Similarly, to use the paid version of Perplexity AI, an Airtel SIM is required in India. Other general users have to pay $20 per month or $200 per year for this subscription.