The AI issue is rapidly spreading throughout India. A report has recently been produced by the foreign brokerage firm BofA Securities. This report states that it has now emerged as the largest global market regarding the acquisition rate of the Large Language Model. This has occurred due to platforms like ChatGPT, Gemini, and Perplexity.

'Test Bed' for AI: The report states that India has emerged as the 'top test bed' for 'Agency AI' applications. 'Agency AI' applications are those that not only answer questions but also can think and carry out tasks independently.

ChatGPT is the top provider of LLM solutions in the Indian market. It has approximately 145 million users who are active on a regular basis. Google's Gemini is the second most favored option, boasting 105 million active users on a regular basis. Reports indicate that around 65 million individuals in India utilize OpenAI's ChatGPT each day, whereas 15 million people access Gemini.

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Remarkably, a significant share of their user base on these global platforms comes from India. 38 percent of its overall monthly users originate from India. 30 percent of its monthly users come from India. 16 percent of its worldwide customer base originates from India. Numerous essential factors have been mentioned for India's emergence as the globe's biggest AI market.

Jio is providing its users a complimentary subscription to the Google Gemini Pro plan for 18 months. Airtel is providing Perplexity subscriptions alongside bundled packages. These promotions have resulted in a notable increase in downloads. Data is very inexpensive in India. Users can utilize more than 20GB of data for approximately Rs.160-170 each month.

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This expansion is beneficial for consumers to increase productivity and learning. However, the report also raises concerns for domestic startups.

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BofA Securities says that just as Facebook and YouTube captured the market during the social media era, global AI companies could dominate the market before local Indian startups can even scale.

Global companies have the advantage of vast data and network access, which could give them an edge over Indian startups in offering agentic AI solutions tailored to local needs.