Why are Gemini, Open AI and Perplexity offering free AI offers to Indians

Essential brief

Key facts

India accounts for over one-third of Perplexity's global daily active users, up from 7% last year.

OpenAI's ChatGPT has the highest daily engagement among Indian users compared to Perplexity and Gemini.

Leading AI companies are offering free or discounted services to capture the rapidly growing Indian market.

India's large, youthful population and increasing internet penetration make it a strategic focus for AI expansion.

These offers help companies build user trust, gather data, and tailor AI products to local needs.

Highlights

India accounts for over one-third of Perplexity's global daily active users, up from 7% last year.

OpenAI's ChatGPT has the highest daily engagement among Indian users compared to Perplexity and Gemini.

Leading AI companies are offering free or discounted services to capture the rapidly growing Indian market.

India's large, youthful population and increasing internet penetration make it a strategic focus for AI expansion.

India has rapidly emerged as a crucial market for global AI companies such as OpenAI, Google (with its Gemini AI), and Perplexity.

Recent data from Sensor Tower reveals that India now accounts for over one-third of Perplexity's global daily active users, a significant jump from just 7% last year.

This surge highlights the country's growing appetite for AI-powered tools and services.

In response, these leading AI firms have introduced heavily discounted or free offers specifically targeting Indian consumers, aiming to capture and expand their user base in this promising market.

For instance, ChatGPT, developed by OpenAI, maintains a strong foothold with 46% of its monthly users in India engaging with the app daily as of November, compared to 20% for Perplexity and 14% for Gemini.

The disparity in engagement rates underscores the competitive landscape and the importance of user retention strategies.

The influx of free or low-cost AI services not only accelerates adoption but also fosters familiarity and trust among Indian users, who are increasingly integrating AI into their daily digital interactions.

Moreover, India's large and youthful population, coupled with rising internet penetration and smartphone usage, makes it an attractive market for AI companies seeking long-term growth.

These companies are also likely leveraging India's diverse linguistic and cultural landscape to refine their AI models for broader applicability.

The strategic focus on India reflects a broader trend where tech giants prioritize emerging economies to sustain growth amid saturation in Western markets.

Ultimately, the free AI offers serve as a gateway for these companies to establish dominance, gather valuable user data, and innovate products tailored to local needs.

This aggressive expansion into India could shape the future trajectory of AI adoption globally, positioning the country as a key player in the AI revolution.