Tech companies in India are facing a critical juncture as the country’s AI user base expands rapidly. According to market intelligence firm Sensor Tower, India surpassed the U.S. in generative AI app downloads in 2025, signaling significant growth in AI adoption. To capitalize on this trend, major players like OpenAI, Google, and Perplexity initially offered free premium services to attract users in the price-sensitive Indian market.
However, as these promotional periods come to an end, companies are now shifting their focus towards converting these users into paying subscribers. For instance, Perplexity terminated its bundled offer with Airtel, while OpenAI discontinued free access to ChatGPT Go in India. This transition marks a pivotal moment to evaluate the conversion rates of acquired users to paying customers.
Despite the surge in AI app downloads, India’s revenue contribution remains disproportionately low, accounting for only 1% of in-app purchases globally. This disparity underscores the challenge of monetization in a market where user acquisition outpaces revenue generation. Sensor Tower data reveals that while India drives a significant share of GenAI app downloads, the revenue from in-app purchases lags behind.
The rapid growth of AI app adoption in India, particularly in 2025, has not been fully mirrored in revenue figures. Although download rates soared, in-app purchase revenue witnessed a decline towards the end of the year. For instance, ChatGPT experienced a notable revenue drop during this period, underscoring the complexities of monetizing AI services in a market experiencing explosive user growth.
Source: TechCrunch