The report states that an increasing number of organisations in India are adopting Gen AI-driven solutions to meet diverse consumer demands, improve efficiency
With the trend expected to improve insights-driven pricing, promotions, and customer experiences in India’s burgeoning retail sector, a report has stated that generative artificial intelligence (Gen AI) is likely to boost retail productivity by 35 to 37 per cent within the next five years
EY India’s latest report, ‘How much productivity can Generative AI (Gen AI) unlock in India? The AIdea of India: 2025’, stated that an increasing number of organisations in India are adopting Gen AI-driven solutions to meet diverse consumer demands, improve efficiency, and foster innovation, enabling growth and adaptability even with resource constraints.
Around 48 per cent survey respondents shared that they have already initiated proofs of concept (POCs) of using Gen AI in their organisations. 32 per cent claimed that they are either about to invest in Gen AI or have already allocated budgets towards this, as per the report.
“Gen AI is transforming India’s retail, consumer and e-commerce landscape by unlocking unprecedented opportunities for organisations. The trajectory of Gen AI suggests that insights-driven pricing, promotions, and enhanced customer experiences will be pivotal, with an anticipated productivity impact ranging from 40 per cent to 45 per cent. Store operations are not far behind, with expected improvements in efficiency of 38 per cent to 40 per cent,” stated Angshuman Bhattacharya, Partner and National Leader – Consumer Product and Retail Sector, EY-Parthenon.
The report highlighted that 52 per cent organisations are focused on enhancing the sales function using Gen AI recommendation engines to enhance consumer shopping experiences. 48 per cent are employing Gen AI to refine supply chains by optimising demand forecasting, route planning and warehouse operations, to reduce errors and increase overall efficiency, the report added.
Overall, the implementation of AI has been successful in organisational cost reduction according to 56 per cent of the respondents, for 44 per cent respondents it has helped increase revenue, and improved customer satisfaction. Given these achievements, the report stated that the future for the adoption Gen AI shines bright on the retail horizon.
