India has become ChatGPT’s largest market, fueled by a large digitally connected population, widespread access to free AI tools and a deep pool of trained workers able to build applications with the technology.

That growth reflects the dominant freemium model: companies provide basic AI access at no charge to build user bases and gather interaction data, then charge for advanced features expected to deliver productivity gains.

But widespread free use creates a “free rider” problem, and the strain could grow as sovereign AI infrastructure expands and raises demand for computing power and energy.

Recovering those infrastructure costs from consumers may be difficult in India, where users are price-sensitive and many have yet to see benefits compelling enough to justify paying for AI.

Only a small share of users pays for advanced AI, and some paying customers are questioning whether the tools deliver enough value as costs mount; in some cases, AI-assisted coding has cost more than human coding without producing greater productivity or savings.