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AI reshapes India’s e-commerce environment

 ·  By Zenobia Blythemore
AI reshapes India's e-commerce environment - ai ecommerce
Myntra’s chief technology officer highlighted AI integration across stock management and shopper product suggestions. Photo: Wolfgang Weiser/Pexels

India’s e-commerce industry is moving quickly toward operations powered by artificial intelligence, as companies weave machine learning into their fundamental processes to boost both efficiency and tailored customer experiences. Myntra’s chief technology officer explained how the retailer is embedding AI throughout its operations, from stock management to product suggestions for shoppers.

This development mirrors wider changes across the sector. Meesho, a leading reseller platform in India, has integrated AI into its systems to simplify how vendors are matched with buyers and orders are processed. The company’s release of BharatMLStack, an open-source collection of AI tools built for local businesses, shows the industry’s commitment to making these technologies widely available. Unlike closed systems, this toolkit is engineered to help small sellers adopt AI without requiring significant initial investment.

Businesses are also partnering with specialized AI providers. Tata Consultancy Services (TCS) recently teamed up with Rezolve AI to enter the field of “agentic commerce,” where AI agents independently manage tasks like order processing and customer support. This follows Amazon’s announcement of a $48 billion investment in India, which includes expanding its rapid-delivery services to 300 cities.

The trend is not limited to retail. Digital payments company Edenred appointed a new managing director for India in January, reinforcing the connection between financial services and AI-based transaction monitoring. Meanwhile, the Open Network for Digital Commerce (ONDC) has announced plans to impose a small fee on participating marketplaces after its launch phase.

Initial outcomes demonstrate clear advantages. Tanishq, the jewelry brand, saw app user retention rise by 25% after implementing MoEngage’s AI-driven customer engagement platform. The improvement resulted from automated, personalized promotions and behavior-based triggers, cutting customer loss without manual effort.

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