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AI adoption in Indian e-commerce
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2026-11-01 10:23 UTC → 2026-11-04 07:11 UTC ·
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Indian e-commerce and direct-to-consumer startups are increasingly integrating specialized artificial intelligence and automation to manage operational costs and risks. Companies are utilizing automated software to confirm customer addresses and encourage prepaid payments to mitigate the costs of refused cash-on-delivery orders. Additionally, customer support is shifting toward WhatsApp-based chatbots for repetitive tasks like order tracking and refunds. On the infrastructure level, firms such as Meesho are developing in-house machine learning platforms to reduce AI workload costs by an estimated 60 to 70 percent. Consumer behavior is also shifting, with reports indicating that Indian millennials are leading the adoption of AI-powered shopping tools. According to a McKinsey and Company survey, survey conducted in June 2026, 84 percent of Indian millennials use AI for product searches and purchase decisions, a rate that exceeds Gen Z (74 percent), Gen X (74 percent), and other age demographics. baby boomers (56 percent). India currently ranks second among 11 surveyed markets for overall AI shopping adoption, adoption at 76 percent, trailing only China. China at 80 percent and significantly exceeding the global average of 53 percent. Indian consumers also show high confidence in the technology, with 87 percent of AI users stating they trust AI chat and search tools, compared to a global average of 73 percent. In response to these trends, Google is piloting a “Discover” tab within its Google Pay app in India. This feature uses Google’s Shopping Graph to provide personalized fashion feeds and includes visual search capabilities via Google Lens. The pilot also introduces AI-powered virtual try-on technology for certain garments, though final checkouts are completed on merchant websites.
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- 2026-11-04 07:11 UTC AI adoption in Indian e-commerce
- 2026-11-01 10:23 UTC AI adoption in Indian e-commerce
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