The development of AI in India is forcing companies to sell the remaining revenue to users

Tech giants’ efforts to boost AI adoption in India may be about to change, as companies end free upgrades in hopes of turning the world’s fourth-largest economy into a threat to paying subscribers.

India will become the world’s largest market for AI software downloads in 2025, according to market intelligence firm Sensor Tower, extending its lead over the US as installations jumped 207% year-on-year.

Companies including OpenAI, Googleand Mental confusion released additional free offerings to support user growth in the premium market. Leading AI companies will also support India in its push to become the world’s smartest hub. A AI summit in New Delhi last week it was attendance by leaders including OpenAI’s Sam Altman, Dario Amodei of Anthropic, and Alphabet CEO Sundar Photosi – a sign of the world’s weight in the global AI competition.

Now, some of that initial push is fading. Mental confusion it ended Its Pro integrated with Indian telco Airtel in January, while OpenAI’s free access to ChatGPT Go in India is are no longer availablewhich can establish a clear way to test how many newly acquired leads convert into paying subscribers.

Despite the increase in downloads, India still accounts for the smallest share of AI app revenue, accounting for about 1% of in-app purchases even though it drives about 20% of GenAI’s global downloads, according to Sensor Tower data shared by TechCrunch, highlighting the challenges of monetizing one of the fastest-growing markets in the world.

The adoption of GenAI software in India increased significantly until 2025, with downloads peaking in September and October at year-on-year growth of approximately 320% and 260%, respectively, according to the data. However, increased usage did not necessarily translate into financial gains. In November and December 2025, AI software spending in India fell 22% and 18% month-on-month, respectively. ChatGPT’s earnings fell sharply – down 33% and 32% in the same period following the launch of the free $5 ChatGPT Go in November – indicating that it is about to be aggressively followed.

ChatGPT still controls more than 60% of GenAI’s software revenue in India, meaning any change in its pricing could have a significant impact on the overall market.

Along with the marketing push, Sensor Tower reported that the number of GenAI software implementations in India last year was a mix of new products launched, including the emergence of platforms such as DeepSeek, Grok, and Meta AI, and upgrades to major chatbots such as ChatGPT, Gemini, Claude, and Perplexity. Viral interest in AI products has also fueled adoption, with content and revolutionary tools accounting for seven of the 20 most downloaded GenAI apps in India in 2025.

The number of users has been mentioned in the same way. India will account for nearly 19% of the world’s user-led AI-enabled software in 2025, ahead of the US at 10%, Sensor Tower said. ChatGPT continues to dominate the Indian market by monthly users, although competitors including Google Gemini and Perplexity have also seen rapid growth following promotions. ChatGPT then the most downloaded GenAI software in India and globally in 2025, according to Sensor Tower data. Earlier this month, the CEO of OpenAI said that the chatbot is now dead more than 100 million users every week in India.

The push into India shows the AI ​​industry’s growing strategy to reduce price friction in a market that is high on demand, betting that early user adoption and engagement will translate into long-term retention after the free period ends, said Sneha Pandey, analyst at Sensor Tower.

India’s appeal lies in its digital infrastructure. The country has more than a billion internet users and nearly 700 million smartphone owners, making it one of the largest markets for AI services in the world and a battleground for user growth.

However, the user experience in India follows a very mature market. In 2025, top AI chatbot users in the US spent 21% more time per week on apps than their Indian counterparts and engaged 17% more on average, per Sensor Tower.

“Inventions in AI software may see positive but gradual changes as users become more deeply integrated into these platforms, making communication more important,” Pandey told TechCrunch.

He added that pricing pressure in India should remain high as the country has a young and highly conservative user base, making low-cost segments, telecom bundles, and micro-transactions important for long-term retention.

ChatGPT remained the market leader in India entering 2026, with 180 million monthly users in January, per Sensor Tower, followed by Google’s Gemini with 118 million, Perplexity with 19 million, and Meta AI with 12 million. These numbers underscore the growing AI opportunities in India and the growing challenge for companies to turn rapid user adoption into sustainable revenue.

Google, OpenAI, and Perplexity did not respond to requests for comment.