Airtel-Perplexity to Jio-Gemini: Why global AI giants are offering free premium access in India

Economic Times
Economic Times
1M ago
36 views
Global AI companies are providing free premium services in India to attract users and collect data. This strategy raises concerns about long-term user retention and market competition.
Airtel-Perplexity to Jio-Gemini: Why global AI giants are offering free premium access in India
A What happened
In a bid to expand their user base in India, leading AI companies are offering premium services for free. Notable partnerships include Airtel with Perplexity and Jio with Google’s Gemini, both targeting young users with significant discounts on subscription costs. This strategy, while framed as democratizing access to AI, has drawn skepticism from experts who liken it to previous tech industry tactics that often lead to a 'bait and switch' scenario. The challenge lies in convincing users to transition to paid plans after the free period, especially when free versions remain accessible. Additionally, the move raises concerns about market competition and potential antitrust issues, as these companies leverage India's vast user base and data richness to enhance their AI models. Critics argue that without local alternatives, the dominance of these global players could stifle the development of indigenous AI solutions.

Key insights

  • 1

    User Retention Challenge: Convincing users to upgrade after free trials is uncertain.

  • 2

    Data Richness in India: India's large population offers valuable data for AI training.

  • 3

    Antitrust Concerns: Free offerings may be seen as predatory pricing against competitors.

  • 4

    Lack of Local Alternatives: India lacks homegrown AI platforms to compete with global giants.

Takeaways

The strategy of offering free premium AI services in India presents both opportunities and challenges. While it aims to democratize access and build a user base, the long-term implications for user retention and market competition remain to be seen.

Topics

Technology & Innovation Artificial Intelligence Business & Markets Economy

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