Artificial Intelligence in Retail and E-commerce Market in India (2025 - 2030)

India’s AI-driven retail and e-commerce market is set for significant expansion between 2025 and 2030, fuelled by advancements in machine learning, automation, and personalized consumer experiences. Growing AI adoption in inventory management, customer engagement, and fraud detection will drive efficiency and profitability. As businesses leverage AI for predictive analytics and hyper-personalization, the sector is poised for transformation. Companies that integrate AI-driven solutions and adapt to evolving consumer demands will gain a competitive edge in this dynamic and rapidly evolving market.

Market insights:

The AI-driven retail and e-commerce market in India is set for significant growth from 2025 to 2030, fuelled by increasing investments and deeper AI integration. AI-powered solutions are enhancing decision-making in product management, marketing, and customer engagement, enabling faster and more efficient operations.

The adoption of AI chatbots is improving customer support, while automation is making retail more human-centric. AI funding peaked at USD 5.2 billion in 2022, and despite a decline to USD 1.1 billion in 2023, investments remained a priority. In 2024, AI spending surged by 52%, with companies allocating 3.32% of revenue to AI initiatives. With strong government support and evolving digital infrastructure, AI adoption will continue to reshape the industry.

Market Trends:

AI is revolutionizing India’s retail and e-commerce sectors by driving personalized shopping experiences, with 71% of retail businesses expected to adopt generative AI by 2024. AI-powered recommendation engines, like Amazon’s Rufus, refine product suggestions and enhance user engagement. AI-driven commerce conversations are becoming integral, with platforms like Flipkart’s ‘Flippi’ assisting shoppers in real-time.

AI is further optimizing supply chains, as seen with Swiggy’s AI-driven warehouse expansion for faster deliveries. Additionally, AI enhances fraud prevention, with companies like Infibeam Avenues developing AI-based authentication solutions. Real-time analytics with Edge AI is improving operational efficiency, such as AI-driven people-counting systems for retail analytics. As AI adoption deepens, businesses integrating automation, personalization, and real-time insights will gain a competitive advantage in India’s evolving digital marketplace.