Major players are curtailing free offers and steering focus toward converting existing users into paying subscribers.

In late 2025, in-app revenue declined month over month, with November down about 22% and December down about 18%, as ChatGPT’s free sub-$5 access contributed to the drop.

Industry experts expect ongoing pricing pressure in India due to a young, value-conscious user base, driving the need for lower-cost tiers, telecom bundles, and micro-transaction models to sustain retention after promotions end.

Analysts anticipate gradual AI revenue growth in India as users deepen engagement, with pricing pressure persisting and strategies including regional language options and enterprise partnerships to sustain monetization.

ChatGPT remains the dominant revenue and user driver in India’s GenAI market, with OpenAI leading, while competitors such as Google’s Gemini, Perplexity, and Meta AI are rapidly gaining share in a dynamic landscape.

Industry forecasts place the market at a turning point as firms shift from user acquisition to sustainable monetization, testing whether early promotions can convert into long-term paying customers.

Promotional pricing in late 2025 saw extended free offers from OpenAI, Google, and Perplexity to spur adoption, with some bundles and free access being rolled back.

Global implications show emerging markets require tailored pricing, features, and value propositions rather than applying developed-market models.

India became the world’s largest generator of AI app downloads in 2025, with installs jumping about 207% year over year and accounting for roughly one-fifth of the global user base.

The broader piece adds context on market dynamics and implications for app developers and investors as the ecosystem evolves.

Despite a massive potential market of over 1 billion internet users and around 700 million smartphones, engagement in India trails mature markets, with US users spending more time and having more sessions per week in 2025, signaling higher monetization potential with deeper engagement.

Strategic monetization paths under consideration include lower-cost tiers, telecom partnerships, micro-transactions, regional language optimization, and enterprise or educational partnerships to drive sustainable revenue.