Big tech’s AI ambitions: Meta & Google woo Indian consumers with GenAI

In the bustling landscape of India’s tech-savvy population, big tech giants like Meta and Google are making significant strides to capture the hearts and minds of consumers through the power of Generative AI (GenAI). With over 759 million active internet users, India represents a colossal market, ripe for innovation and digital transformation.

India’s digital ecosystem is one of the fastest-growing in the world. The country’s vast and diverse consumer base offers a unique opportunity for tech companies to deploy cutting-edge technologies. Meta and Google, recognizing this potential, are leveraging GenAI to enhance user experiences and drive business growth.

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Meta is eyeing the Indian markets for its newly launched Meta AI. Meta CFO Susan Li said during Meta’s second-quarter earnings call that Meta AI is buzzing in India.

We’re seeing particularly promising signs on WhatsApp in terms of retention and engagement, which has coincided with India becoming our largest market for Meta AI usage — Meta CFO Susan Li

“We’re seeing particularly promising signs on WhatsApp in terms of retention and engagement, which has coincided with India becoming our largest market for Meta AI usage,” she said.

Google has been playing catch up on the GenAI field for a while now. The search giant too has set its sights on India’s teeming consumer market. In fact, the Indian market could be the key that unlocks Google’s success in GenAI, and the company is preparing to capitalize the huge consumer base it already has in India.

Google CEO Sundar Pichai said in an interview with content creator Varun Mayya, “As Google thinks about AI, for us now, India is one of our top markets. We have for many of our products, it’s our largest user base, we have large teams in India, so we’ve been thinking about AI in the context of India.”

It’s our largest user base, we have large teams in India, so we’ve been thinking about AI in the context of India — Google CEO Sundar Pichai

The tech giant is leveraging its extensive reach in mobile operating systems (Android), browsers (Chrome), and email services (Gmail) to introduce AI applications powered by its Gemini LLM to its vast user base. On Android, we see this in the form of features like live transcriptions, summaries, and photo and video editing. In Chrome and Gmail, Gemini has been integrated as accessible pop-up sidebars, enhancing the overall user experience.

In India, demand for generative AI is building fast. As per Kantar AI research findings, 9 in 10 Internet users in India are already using AI in some form or the other. These are users who have used AI features such as image filters, personalized recommendations, smart devices, etc. According to a Deloitte report 93% of students and 83% of employees actively engaging with GenAI. The report pins India as a frontrunner among 13 countries for GenAI use and adoption.

IT services firm like Infosys and Tata Consultancy Services (TCS) have been cracking deals in GenAI. TCS received US$900 million in generative AI contracts last year. For companies like Google and Meta, this opportunity could be key. 

Meta’s Conversational Commerce

Meta has been at the forefront of integrating GenAI into its platforms, particularly focusing on conversational commerce. According to a report by Meta and Bain & Company, over 60% of large enterprises in India plan to increase their spending on conversational platforms in the next few years. This shift is driven by the growing preference among consumers for conducting transactions via conversational journeys, such as accessing bank statements, booking travel, and paying utility bills.

GenAI will be central to this vision and will empower businesses of all sizes, especially small businesses in India, to leverage its vast potential — Sandhya Devanathan, Head and VP of Meta in India

Sandhya Devanathan, Head and VP of Meta in India, emphasized the transformative potential of GenAI in India, “GenAI will be central to this vision and will empower businesses of all sizes, especially small businesses in India, to leverage its vast potential”. By investing in tools and solutions that facilitate engaging in-thread experiences, Meta aims to bridge the gap between businesses and their customers, fostering growth and engagement.

Google’s AI Integration

Google, on the other hand, has been integrating GenAI across its suite of services to enhance user interaction and streamline processes. From personalized search results to AI-driven recommendations on YouTube, Google’s GenAI initiatives are designed to make digital experiences more intuitive and user-friendly.

The company’s focus on AI is not just about enhancing consumer experiences but also about empowering businesses. By providing AI tools and platforms, Google is enabling Indian enterprises to harness the power of GenAI to optimize their operations and engage more effectively with their customers.

Wooing the Developer Base

Another crucial aspect is that GenAI companies are carving the route to consumer hearts through India’s developer base. India has more than 13 million developers on Microsoft owned GitHub, the world’s largest developer community. This is a sizable number that can tip the scales for any big tech company approaching India with LLMs by adopting foundational AI models and building tools, which will ultimately decide big tech’s reach in the Indian consumer tech market.

As Pichai says, “There’s an extraordinary base of developers, engineering talent. For them to understand this trend and build applications in a way that makes sense either for India or for the world from India, I think both are exciting possibilities.”

However, unlike Meta’s Llama, Google’s Gemini hasn’t gone open source. Still, it isn’t clear yet as to who will fare better with the Indian consumer?

I feel it’ll be Meta AI, because of its easy integration with WhatsApp and the fact that everyone in India with a smartphone uses WhatsApp — Nilotpal Talukdar, Senior Consultant at TCS

“I feel it’ll be Meta AI, because of its easy integration with WhatsApp and the fact that everyone in India with a smartphone uses WhatsApp,” says Nilotpal Talukdar, Senior Consultant at TCS. “But many of the AI technologies are patented by Google, and they are the pioneers, so anyway Google will make money indirectly,” he adds.

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The coming years will likely see an even deeper integration of GenAI into everyday digital experiences, making technology more accessible and beneficial for millions of Indian consumers. This means Meta and Google aren’t the only ones in line to claim a slice of the GenAI market pie in India. OpenAI has big investment plans for India too, which has the second highest number of ChatGPT users in the world.

As big tech companies continue to invest and innovate, the Indian digital landscape will undoubtedly become even more tempting as a market for AI adoption and consumer engagement. It’ll indeed be interesting to see how it all plays out.