AI Tech Giants Compete for India’s Digital Future with Free Tools

In an ambitious effort to dominate one of the world’s fastest-growing digital markets, major technology companies like OpenAI, Google, and Perplexity AI are offering free access to premium generative AI tools in India. Starting this week, millions of Indians can use ChatGPT’s new low-cost “Go” chatbot at no charge for an entire year (BBC). Google and Perplexity AI have followed similar paths, partnering with the country’s leading telecom providers, Reliance Jio and Airtel, to bundle advanced AI tools with mobile data plans. These strategic moves are not driven by generosity, analysts say, but by a calculated bid to secure long-term dominance in a nation where nearly a billion people are online and eager to explore emerging technologies (AOL).

India presents an enormous opportunity for AI adoption due to its combination of scale, affordability, and youth. The country boasts over 900 million internet users, most under the age of 24, and offers some of the cheapest data rates in the world. This demographic is mobile-first, tech-savvy, and highly engaged online, precisely the kind of audience AI firms want to reach. Bundling AI access with existing telecom services makes it easier to bring these tools to millions of new users at once, encouraging habitual use while generating vast amounts of real-world data to train and refine AI systems (BBC). As Tarun Pathak of Counterpoint Research explained, “The plan is to get Indians hooked on generative AI before asking them to pay for it” (AOL).

The significance of India’s role in this global AI strategy cannot be overstated. In more tightly regulated markets like China, foreign tech access is restricted, while in the European Union and South Korea, tough AI regulations impose compliance requirements that make such offers difficult to scale. India’s relatively flexible regulatory landscape, however, provides an open playing field where innovation can flourish with fewer immediate barriers. Experts believe this environment allows companies to experiment with business models that would be impractical elsewhere (BBC; DigWatch).

Yet, while the move is a win for AI companies, it raises important questions about privacy and consumer protection. Many users remain unaware of how much personal data they share while interacting with AI systems. Delhi-based analyst Prasanto K. Roy warns that users are often willing to exchange privacy for convenience or free services, a tendency that could have long-term implications if not addressed by regulation. India’s recently passed Digital Personal Data Protection Act (DPDP) 2023 introduces new privacy safeguards, but it has yet to be fully implemented and does not directly address AI systems or algorithmic accountability (BBC). Once enacted, experts expect it to become one of the more advanced digital privacy frameworks globally, though it may still require adaptation to handle the rapid evolution of generative AI (AOL).

For now, these free offerings highlight both India’s immense potential and the urgency of thoughtful governance. The country’s diversity and massive online population provide fertile ground for AI innovation, but they also underscore the need for stronger awareness of data rights. “At this point, we need light-touch regulation,” Roy notes, “but that will have to evolve as the extent of potential harm becomes clearer” (BBC). As global tech giants race to capture market share, they are effectively turning India into a living laboratory for AI adoption, one that could shape the future of how AI technologies are distributed, used, and monetized across emerging economies. Even if only a small fraction of India’s millions of free users eventually pay for premium services, the long-term returns could be immense, cementing the country’s place as a pivotal force in the next wave of the global AI revolution (DigWatch).

This article was written by the Covertly.AI team. Covertly.AI is a secure, anonymous AI chat that protects your privacy. Connect to advanced AI models without tracking, logging, or exposure of your data. Whether you’re an individual who values privacy or a business seeking enterprise-grade data protection, Covertly.AI helps you stay secure and anonymous when using AI. With Covertly.AI, you get seamless access to all popular large language models - without compromising your identity or data privacy.

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Works Cited

BBC News. “Why Tech Giants Are Offering Premium AI Tools to Millions of Indians for Free.” BBC News, 2024, https://www.bbc.com/news/articles/c14pr0enjr6o.

DigWatch. “Tech Giants Offer Free Premium AI in India.” Digital Watch Observatory, 2024, https://dig.watch/updates/tech-giants-offer-free-premium-ai-in-india.

AOL. “Why Tech Giants Are Offering Premium AI Tools to Millions of Indians for Free.” AOL News, 2024, https://www.aol.com/articles/why-tech-giants-offering-premium-005741873.html.

“OpenAI Plans Massive India Data Center.” Bloomberg, 1 Sept.

2025, www.bloomberg.com/news/videos/2025-09-01/openai-plans-massive-india-data-center-video.

“Digital Personal Data Protection Act 2023.” Lloyd Law College, www.lloydlawcollege.edu.in/blog/digital-personal-data-protection-act-2023.html.