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.

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.