Artificial intelligence companies, including OpenAI, Google, and Perplexity AI, are partnering with Indian telecom firms to provide millions of Indians with free access to AI tools like ChatGPT’s new low-cost ‘Go’ chatbot for a year. This initiative aims to capture the attention of India’s large, youthful internet user base—over 900 million people, primarily under 24 years old. Analysts suggest that these moves are strategic investments to establish a foothold in the market, allowing companies to gather valuable data to enhance their AI models.
While this strategy benefits the companies, it raises concerns about data privacy. Experts argue that users often trade personal information for free services without fully understanding potential risks. India currently lacks specific regulation for AI, relying on broader data protection laws that haven’t been effectively implemented yet. This flexible regulatory landscape enables companies to roll out these free services more easily than in regions with stringent governance, like the EU.
Analysts emphasize a need for stronger regulation to protect consumers, while companies hope to convert a small percentage of free users into paying customers, leveraging India’s booming digital environment.
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