India’s AI boom pushes firms to trade near-term revenue for users

India has become the world's largest market for generative AI (artificial intelligence systems that can create text, images, and other content) app downloads in 2025, with installs jumping 207% year-over-year, but major AI companies like OpenAI and Google are now ending free promotional offers to convert users into paying subscribers. Despite India driving roughly 20% of global GenAI app downloads, it accounts for only about 1% of in-app purchases, and revenue has actually declined in recent months as companies rolled out cheaper or free options like ChatGPT Go. The challenge reflects a tension between rapid user growth and actual monetization (converting users into paying customers) in a price-sensitive market.