AI Subscriptions: Why are AI companies giving away free subscriptions to millions of Indian users? Understand the reason...

In India, AI companies like ChatGPT, Perplexity, and Google Gemini have announced free subscriptions to users. These companies are partnering with telecom companies to offer free subscriptions. Perplexity is offering free subscriptions to Airtel customers, while Google has partnered with Reliance Jio, the country's largest telecom company, for Gemini. Recently, ChatGPT, an AI chatbot from the American AI company OpenAI, became the most downloaded app on the Google Play Store in India. Meanwhile, Perplexity and Google Gemini have also reached millions of users in India.

The question posed by all this is: why are AI companies in India offering free subscription plans, when users in Europe and the United States have to pay hundreds of dollars for these same plans? Is this due to the company's business strategy, or is there some other reason? Let's try to find out.

AI companies are eyeing user data.
India has over 900 million internet users and is believed to have the cheapest data in the world. The majority of the country's online population is under the age of 24, the generation that uses smartphones and the internet the most. India, with its large and diverse population, offers an open market for AI companies. Global tech companies are eager to capitalize on the opportunity to add millions of new users to improve their AI models. The more Indians use these platforms, the faster companies will receive data, and the better they will train their AI models.

Companies want to create an addiction to generative AI.
Tech experts believe that such offers should not be mistaken for company generosity. They represent a calculated long-term bet on India's digital future. According to experts, companies may also be planning to get Indians used to generative AI, and then ask them to pay for it later. Many companies have used this model to expand their businesses in India and have been successful.

The lack of strict regulatory policies is also a factor.
India's market is not only large in terms of consumers, but it also offers companies the opportunity to expand using user data. Large markets like China have strict regulations regarding user data, limiting the access of foreign companies. In contrast, India offers an open and competitive market. Global tech companies are unwilling to miss the opportunity to add millions of new users here. While companies are currently offering free subscriptions to AI tools, these won't remain free forever.

Concerns about data security are growing.
Experts say that most users are always willing to share their data in exchange for freebies or features, and this trend will continue. While this is undoubtedly a profitable deal for AI companies, from a consumer perspective, it raises many questions about data privacy. While many countries are enacting stricter regulations to prevent artificial intelligence and misuse of data, India currently lacks a dedicated law to regulate AI companies. However, the implementation of a comprehensive Digital Personal Data Protection Act (DPDP) addressing digital media and privacy could strengthen personal data protection.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.