Skeptics warn of Big Tech’s data collection incentive in free AI offers in India

Global technology giants are facing mounting scrutiny from Indian regulators and experts after launching large-scale programs that offer free access to advanced artificial intelligence tools to numerous users across the state.

Millions of Indians are expected to receive a whole year of free access to ChatGPT’s new, affordable “Go” AI chatbot starting this week. This announcement follows similar news from Google and Perplexity AI, released in the past few weeks.

These two AI-powered search companies collaborated with local mobile firms in India to offer users a year or more of access to their AI tools.

Regarding their collaboration with local mobile firms, Perplexity joined forces with Airtel, the country’s second-largest mobile network provider. Google, on the other hand, Partnered with Reliance Jio, the largest telecom company in India. The purpose of these collaborations is to provide Indian users with free or discounted AI tools together with monthly data plans.

Analysts raise concerns about Big Tech’s free access to AI tool offers

Following the free access offer to AI tools, analysts warned that such offers should not be viewed merely as a common courtesy. Based on their argument, such deals are strategic investments focused on India’s digital future. 

An example of these analysts is Tarun Pathak, an analyst at Counterpoint Research. During an interview, he mentioned that Big Tech companies aim at getting Indians engaged with generative AI before asking them to pay for it.

Mr Pathak further explained that India’s big market comprises a young audience. Although other major markets, such as China, may challenge India in terms of user numbers, it is worth noting that China’s strict tech rules make it difficult for foreign companies to access.

In contrast, India has a competitive and open digital market. These findings are released as global tech firms utilize the AI boom era to attract millions of new users, helping to train their AI models. When reporters reached out to Google, OpenAI and Perplexity to comment on the topic of discussion, they declined to respond.

Meanwhile, India boasts over 900 million internet users and offers some of the most budget-friendly data worldwide. Most of its users in this sector are young individuals, with the majority being under 24 years old. To explain this trend, sources highlighted that the current generation excels at living, working, and connecting with others online using their smartphones. 

Therefore, merging AI tools with data plans presents a significant opportunity for tech firms, especially given that India’s data usage exceeds that of many other nations. As more Indians use this platform, companies gain access to useful firsthand information. 

“India is a highly diverse nation. The AI applications that develop here will offer important case studies for the global community,” said Mr Pathak. According to him, the more unique and firsthand information these tech companies gather, the more effective their models become, especially for generative AI systems.

India’s internet users trade their data for free services or convenience

While accessing valuable information greatly benefits AI firms, it raises concerns among consumers about data privacy issues. Prasanto K Roy, a Delhi-based technology writer and analyst, commented on the situation. 

Roy acknowledged that users are always willing to give up their data for free services or convenience. Hence, he believes that this trend will likely continue.

Currently, there is no specific law in India for artificial intelligence. Additionally, a wider Digital Personal Data Protection Act (DPDP) 2023 exists, which is primarily designed to address digital media and privacy, but has not yet been enacted.

Experts believe that while the act provides some basic protection for personal data, the rules set for its enforcement have not yet been fully developed. Moreover, it fails to address AI systems or hold algorithms accountable.

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