Indian consumers are increasingly open to using artificial intelligence to simplify online shopping, but widespread concerns over data safety and transparency could shape how quickly the shift unfolds. A Local Circles survey of over 75,000 online shoppers across 332 districts found that seven in 10 consumers plan to use AI within the next 12 months, particularly to verify product authenticity and receive personalised recommendations.
The findings highlight how AI is moving from a back-end technology to a consumer-facing shopping assistant - helping users navigate India's vast and often overwhelming e-commerce landscape.
AI Seen as a Solution to Shopping Friction
The survey revealed that product discovery remains one of the biggest pain points for Indian consumers. About 69% of respondents said finding the right product is the most time-consuming part of online shopping, while nearly half struggle to identify the best combination of price, delivery time and return policies.
AI is increasingly viewed as a solution to these inefficiencies. Around 68% of respondents said they want AI to check the authenticity of products and sellers, while 64% expect it to help discover products tailored to their preferences. Over half also want AI to compare prices, verify reviews and answer queries faster.
This reflects growing trust in AI's ability to act as a digital intermediary - narrowing choices, analysing reviews and streamlining decision-making in a crowded marketplace.
Platforms Will Be the Entry Point
Despite the rise of standalone AI assistants, most consumers prefer AI tools embedded directly within e-commerce platforms.
Nearly half of respondents said they want to begin their AI-assisted shopping journey within e-commerce apps or websites, compared with just 17% who prefer external AI tools such as chatbots or standalone platforms.
This suggests that platforms like Amazon, Flipkart and Myntra are likely to remain the primary gateways for AI-powered shopping, rather than ceding control to third-party AI intermediaries.
Trust Gap Emerges Around Data Safety
While consumers see clear benefits, concerns around privacy and algorithmic transparency remain widespread.
About 73% of respondents said they worry their personal data may not be secure when using AI, while 69% expressed concern about the lack of transparency in how AI evaluates products and sellers.
More than 60% also fear that AI may recommend biased or sponsored products, raising questions about neutrality and trust in automated recommendations.
These concerns persist even after the government notified rules under India's Digital Personal Data Protection framework, highlighting lingering scepticism around how consumer data will be handled in AI-driven commerce.
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