LocalCircles survey shows strong demand for AI-driven product discovery and authenticity checks, even as data security concerns remain high
Nearly 70 per cent of Indian online shoppers want artificial intelligence tools to verify product authenticity and personalise recommendations, yet a similar proportion fear their personal data may not be secure, highlighting a trust paradox at the heart of India’s fast-expanding ecommerce market.
A nationwide survey by LocalCircles, which received over 75,000 responses from consumers across 332 districts, indicates that while shoppers see AI as a solution to discovery and trust gaps, concerns over transparency and data misuse could shape how quickly such tools are adopted.
Discovery Fatigue Driving AI Demand
Among respondents, 69 per cent said finding the right product or service is the most time-consuming part of online shopping. Nearly half, 49 per cent, said comparing prices, delivery timelines and return policies across platforms is difficult.
Concerns over credibility are also widespread: 43 per cent struggle to verify seller credentials and 40 per cent question the authenticity of reviews and ratings.
The data suggests that AI demand is rooted less in novelty and more in reducing search friction and improving trust.
Majority Plan To Use AI Within A Year
When asked how they expect to use AI over the next 12 months, 68 per cent said they would use it to check the authenticity of products and sellers. Another 64 per cent said they want AI-generated recommendations tailored to their needs and preferences.
More than half indicated interest in using AI to compare products and prices (56 per cent) and to verify review authenticity (56 per cent). Other intended uses include faster query resolution (46 per cent) and tracking discounts or price trends (36 per cent).
The findings come as major marketplaces such as Amazon and Flipkart expand the use of machine learning models to personalise search, recommendations and logistics.
Platforms Retain Early Advantage
Despite the emergence of standalone AI assistants, 49 per cent of respondents said they would prefer to access AI tools directly within an ecommerce app or website. Only 17 per cent indicated a preference for using external AI platforms or prompt-based systems.
Survey suggests that marketplaces still control the primary customer interface, provided they integrate AI capabilities effectively within their ecosystems.
Data Protection Remains The Key Risk
At the same time, 73 per cent of respondents expressed concern that their personal information may not be secure when using AI-powered shopping tools. Sixty-nine per cent cited a lack of transparency in how AI evaluates products and sellers, while 61 per cent were worried about biased or sponsored recommendations.
The survey was conducted after notification of implementation rules under India’s Digital Personal Data Protection Act, yet apprehensions around data usage remain elevated.
