Indians Lead the World in AI App Downloads in 2025, But Lag in Revenue

In 2025, India emerged as the global leader in generative AI app downloads, showcasing the country’s growing fascination with artificial intelligence. According to a report by market intelligence firm Sensor Tower, downloads of generative AI apps in India surged 207% year-on-year, making the nation the largest market for these apps worldwide. Despite this massive adoption, the spike in downloads has not translated into revenue growth.

Record-Breaking AI Adoption

The report highlights that India accounted for nearly 20% of global generative AI app downloads, or roughly 1 in every 5 downloads. This remarkable adoption has put India ahead of the United States in terms of generative AI usage, with apps and chatbots becoming increasingly popular across the country.

Revenue Growth Falls Behind

While the download numbers reflect a booming user base, revenue generation remains modest. In 2025, Indian users contributed only about 1% of the global in-app purchase revenue. Even with year-on-year growth in downloads reaching 320%, revenue growth lagged behind. November and December saw declines in in-app purchases of 22% and 18%, respectively, indicating challenges in converting user engagement into sustained revenue.

Free Offers Fuel the Download Surge

The surge in downloads was largely driven by promotional pushes and the introduction of new AI platforms such as DeepSeek, Grok, and Meta AI. Additionally, free access initiatives played a significant role. Google offered one-year free access to its AI Pro plan in India, while Perplexity partnered with Airtel to provide free Pro access to Indian users. OpenAI also offered a limited-time one-year free subscription to ChatGPT Go.

These free offerings impacted revenue, with ChatGPT Go’s free launch in November reducing revenue from ChatGPT in India by 33% in November and 32% in December. Nonetheless, OpenAI maintained dominance, controlling over 60% of India’s generative AI in-app revenue.

AI Usage Continues to Rise

The recent India AI Impact Summit further highlighted the growing AI adoption in India. OpenAI CEO Sam Altman noted that ChatGPT now has over 100 million active weekly users in India, underscoring the country’s rapid embrace of AI technologies. Users are actively engaging with AI apps and chatbots, cementing India’s position as a key player in the global AI landscape.