India isn’t just scrolling and streaming anymore, it’s prompting. From students using chatbots for homework to creators generating AI art and videos, the country has gone all-in on artificial intelligence apps in 2025. But while downloads are breaking records, companies are still figuring out how to make money from this massive user base. Here’s what’s happening. India becomes the world’s largest Gen-AI download market India has emerged as the biggest market globally for generative AI app downloads in 2025. According to data from Sensor Tower, installs surged 207 percent year-on-year, pushing India ahead of the United States in total downloads. Roughly 1 in 5 generative AI app downloads worldwide now come from India. That’s about 20 per cent of the global share, a huge jump in just one year. The growth peaked during September and October, when downloads rose 320 percent and 260 percent year-on-year, respectively. Clearly, AI apps have moved beyond early adopters and into the mainstream in India. Big user base, small revenue share However, there’s a catch. Despite contributing nearly 20 per cent of global downloads, Indian users accounted for only about 1 per cent of the total in-app purchase revenue in 2025. In simple terms, a lot of people are downloading AI apps, but very few are paying for them. The monetisation challenge became more visible towards the end of the year. In November and December 2025, in-app purchase revenue from AI apps in India fell 22 percent and 18 percent month-on-month. Revenue from ChatGPT alone dropped 33 per cent in November and 32 per cent in December after the launch of low-cost and free promotional access plans. This gap between adoption and revenue shows how difficult it is to convert high growth into sustainable income in a price-sensitive market like India. Free offers and promotions drove the boom The surge in downloads did not happen by accident. Several companies rolled out aggressive promotional offers to attract users. Companies such as OpenAI, Google, and Perplexity introduced discounted or free premium plans in India. Google partnered with Jio to offer one-year free access to its AI Pro plan, while Perplexity bundled its Pro plan with Airtel. OpenAI also offered a limited-period free access to ChatGPT Go. The impact was immediate. More people signed up and tried these platforms, but revenue dipped as paid subscriptions slowed. Even so, ChatGPT continues to dominate the Indian market, commanding more than 60 percent of generative AI in-app revenue in the country. Also read: Govt blocks 5 OTT platforms for streaming ‘vulgar’ content
AI leaders see big potential in India India’s rise as an AI hotspot has also caught the attention of global tech leaders. At a recent AI summit in New Delhi, OpenAI CEO Sam Altman said, “India has over 100 million weekly ChatGPT users.” The country now makes up about 19 per cent of the global user base for leading AI assistant apps, compared to 10 per cent for the US. Executives from major AI companies have repeatedly highlighted India’s importance as a future growth engine, thanks to its massive digital ecosystem, more than one billion internet users and around 700 million smartphone owners. New apps and viral trends added fuel The AI boom has also been powered by new product launches and viral trends. Platforms like DeepSeek, Grok, and Meta AI entered the market, while existing players upgraded tools such as ChatGPT, Gemini, Claude, and Perplexity. AI-generated images, videos, and content creation tools became especially popular. In fact, content creation and editing apps accounted for seven of the top 20 most downloaded generative AI apps in India in 2025. From social media filters to AI-written captions and artwork, everyday users are experimenting with AI more than ever before. Also read: Samsung’s annual event ‘Galaxy Unpacked’ today, S26 series to feature Titanium body
US users still spend more time While India leads in downloads, engagement levels are still higher in more mature markets. According to the report, US users spent 21 percent more time per week on AI apps compared to Indian users. They also logged 17 percent more sessions on average. This suggests that although India has a larger number of users, deeper engagement, and potentially higher willingness to pay, is still stronger in developed markets. Growth now, revenue later Companies are now balancing rapid user growth with the need to generate sustainable revenue. As free offers are scaled back, the coming months will reveal how many users are willing to pay for premium AI services. For now, India has firmly established itself as the world’s fastest-growing AI app market, even if the money hasn’t quite caught up with the momentum.
