A recent EY India report suggests that generative artificial intelligence (GenAI) could drive a 35-37% surge in productivity within India’s retail industry over the next five years. Titled The AIdea of India: 2025, the report highlights that 48% of Indian businesses have already initiated proof of concept (PoCs) for GenAI applications, while an additional 32% have budgeted or are planning investments in AI. The findings indicate that AI-driven solutions are poised to revolutionize retail, e-commerce, and consumer sectors, presenting significant opportunities for businesses.
Angshuman Bhattacharya, Partner at EY-Parthenon, noted that GenAI’s impact will be particularly strong in areas like insights-driven pricing, promotions, and customer engagement, with expected productivity gains of 40-45%. Store operations are anticipated to see efficiency improvements of 38-40%. Retailers are increasingly leveraging AI to personalize shopping experiences, improve demand forecasting, and enhance warehouse logistics. Additionally, AI is being used for predictive maintenance and manufacturing quality control.
The report also highlights global trends, citing brands like H&M, Coca-Cola, and Amazon Go, which are integrating AI into their operations. While cost reduction (cited by 56% of survey respondents) remains a primary benefit, AI adoption is also expected to boost revenue and customer satisfaction (44%). However, the long-term success of GenAI in retail will depend on maintaining a balance between automation and human-centered customer interactions.
