As Google deepens its artificial intelligence (AI) footprint in India, the tech giant finds itself walking a tightrope between innovation and increasing regulatory scrutiny. With India emerging as a key hub for AI research and development, Google is accelerating investments in local talent, infrastructure, and partnerships — even as it faces mounting antitrust investigations globally, raising questions about the balance of power in the evolving digital economy.

India: A Strategic AI Frontier

India’s tech-savvy population, robust startup ecosystem, and government-backed digital initiatives make it an attractive destination for AI expansion. Google, through its parent company Alphabet, has ramped up its operations in the country over the past year. Key moves include:

• Establishing new AI research centers in Bengaluru and Hyderabad focusing on language models tailored to Indian languages.

• Collaborating with Indian academic institutions to fund AI fellowships and joint research projects.

• Launching AI-driven tools for agriculture, education, and healthcare, aligning with Prime Minister Narendra Modi’s vision for a digitally empowered society.

Sundar Pichai, CEO of Alphabet, has repeatedly emphasized the importance of “AI for everyone,” pointing to India as a critical market for inclusive technology. “India offers a unique opportunity to develop AI responsibly and equitably, especially in linguistically diverse and rural contexts,” he said during a recent virtual summit.

The Regulatory Cloud Overhead

While Google’s India-focused initiatives appear progressive on the surface, global regulators are casting a skeptical eye. Ongoing antitrust probes in the United States and Europe are examining how Google’s dominance in digital advertising, search, and mobile platforms might extend into AI — potentially squeezing out smaller players.

In the EU, authorities have launched a preliminary investigation into how major tech firms could use their AI platforms to lock users into their ecosystems. Meanwhile, in the U.S., the Department of Justice continues its lawsuit against Google over alleged monopolistic practices in digital advertising, with AI integration now being folded into the scope of inquiry.

India’s own Competition Commission of India (CCI) has taken note. While no formal case has been launched, officials have hinted at a close watch on Big Tech’s role in shaping the AI economy. "We are committed to ensuring fair competition and will not hesitate to intervene if dominant platforms abuse their position," a senior CCI official said on condition of anonymity.

Concerns from Domestic Players

Several Indian startups have voiced concerns that Google’s growing control over data infrastructure and cloud services could give it an unfair edge in AI. Many rely on Google Cloud or Android to reach customers, raising fears that Google's dual role as platform provider and competitor could stifle innovation.

“We welcome foreign investment, but there must be safeguards,” said Priya Ramanathan, co-founder of a Bengaluru-based AI healthtech firm. “We can’t build solutions for India if we’re locked into a system where the gatekeeper is also our biggest competitor.”

There’s also anxiety that Google’s data advantage — bolstered by billions of Indian users — could skew algorithmic performance in favor of its services, making it harder for others to compete on a level playing field.

A Question of Trust

The convergence of AI development and regulatory concerns highlights a larger dilemma: can powerful tech firms lead responsible AI growth without dominating the ecosystem?

Experts suggest India must tread carefully. “India can’t afford to alienate global leaders like Google, but it also can’t allow unchecked expansion,” said Ramesh Menon, a digital policy analyst. “A nuanced, forward-looking framework is needed — one that encourages innovation but includes strong guardrails for data use, transparency, and competition.”

The Road Ahead

For Google, India remains a land of opportunity and challenge. Its ambitions to democratize AI across a billion-plus people may hinge on how it navigates a complex web of local and global scrutiny. As New Delhi formulates its national AI strategy and strengthens its digital competition laws, the choices it makes now could shape the future of AI governance — not just in India, but around the world.