Indian Firms Prioritize User Growth Over Immediate Revenue Amidst AI Boom

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India's AI Boom: Firms Sacrifice Revenue for User Growth Amidst Winding Down Promos

India became the world’s largest market for generative AI app downloads in 2025, overtaking the United States as installs surged 207 per cent year-on-year

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Storyboard•25-02-2026, 10:52

India's AI Boom: Firms Sacrifice Revenue for User Growth Amidst Winding Down Promos

•India became the world's largest market for generative AI app downloads in 2025, surpassing the US with a 207% year-on-year surge.
•Despite high adoption, India generated only about 1% of in-app purchase revenue, highlighting monetization challenges.
•Promotional offers from companies like OpenAI and Perplexity AI are now being scaled back, testing user conversion to paid subscriptions.
•AI app in-app purchase revenue in India declined in late 2025, with ChatGPT's revenue falling sharply after aggressive pricing.
•India's vast digital ecosystem and large user base present a significant AI opportunity, but firms face pressure to convert growth into sustainable revenue.

Read Full Article on Storyboard in English

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