India’s AI boom pushes firms to trade near-term revenue for users
AI firms in India are ending free promotions to test user conversion to paid subscriptions amid massive download growth.Summary
Tech giants are shifting strategy in India, the world's largest market for generative AI app downloads in 2025, by ending extended free premium offers to convert newly acquired users into paying subscribers. Despite a 207% year-over-year jump in downloads, India generates only about 1% of global GenAI app revenue, highlighting a significant monetization challenge. Companies like OpenAI and Perplexity have recently concluded promotional periods, setting the stage for a clearer test of monetization. The surge in adoption was fueled by new product launches, upgrades, and viral interest in AI content, leading to India accounting for nearly 20% of global GenAI app downloads. However, revenue dropped in late 2025, reflecting the impact of aggressive free access. Analysts suggest that long-term success hinges on sustained engagement, lower-cost tiers, and telecom bundles for India's massive, value-conscious user base.
(Source：TechCrunch)