At present, India does not have a dedicated law governing artificial intelligence. There is the broader Digital Personal Data Protection Act (DPDP) 2023, external around digital media and privacy, but it is yet to be enacted.

Experts say that while the act introduces broad protections around personal data, its implementation rules are still pending and it does not yet address AI systems or algorithmic accountability.

But once the law comes into effect “it will probably be one of the most advanced from a digital [privacy] perspective”, Mahesh Makhija, technology consulting leader at Ernst and Young told the BBC.

For now though, India’s flexible regulatory environment allows companies like OpenAI and Google to bundle free AI tools with telecom plans, something far harder to do in other countries.

For instance, the European Union’s AI rules, external set tough standards for transparency and data governance, while South Korea’s incoming regulations, external go a step further, requiring labels on AI-generated content and making operators answerable for how their systems are used.

In these regions, such offers would have triggered compliance requirements around user consent and data protection, making them harder to roll out at scale.

Mr Roy says India needs both stronger user awareness and clearer regulation, but without stifling innovation.

“At this point, we need light-touch regulation, but that will have to evolve as the extent of potential harm becomes clearer”.

Until then, the global AI companies will be hoping that by offering these freebies they can replicate India’s past experience of onboarding millions of new users with deeply discounted internet data.

While AI is unlikely to follow a heavily monetised model and is instead expected to be adopted as a low-cost, value-driven service, the country’s sheer volumes offer promise.

“For instance, even if just 5% of free users become subscribers, that’s still a significant number,” says Mr Pathak.

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