India Ranks 2nd Globally in AI-Powered Shopping; 76% of Consumers Embrace AI Tools
A McKinsey report reveals 76% of Indian consumers use AI tools for shopping, trailing only China in global AI commerce adoption.
India has emerged as a global powerhouse in the evolution of e-commerce, securing the second spot worldwide in AI-powered shopping. According to a comprehensive report by McKinsey, an impressive 76 per cent of Indian consumers are now leveraging artificial intelligence tools to discover products, compare different options, and make informed purchase decisions.
India and China Lead the Global AI Race
The study, which surveyed approximately 21,000 consumers across 11 different markets, underscores a massive shift toward AI-led commerce in Asia. While the global average for AI shopping adoption stands at 53 per cent, India and China are significantly ahead of the curve. China leads the world with 80 per cent of consumers using AI for shopping, followed closely by India.
The disparity is stark; McKinsey noted that both China and India are roughly 29 percentage points ahead of the average adoption rate seen in other surveyed countries.
High Trust and Alexa's Dominance in India
Beyond mere usage, Indian consumers exhibit a higher level of confidence in these technologies. About 87 per cent of AI users in India trust AI-driven search and chat tools, surpassing the global trust average of 73 per cent.
The report also highlighted a specific trend regarding voice assistants. India recorded the highest usage of Amazon's Alexa for shopping among all surveyed markets, with 77 per cent of Indian AI users reporting they have utilized the tool for their shopping needs.
From Discovery to Direct Purchase
The landscape of online shopping is evolving from "AI-assisted" to "AI-executed." While many use AI for recommendations, a growing number of users are allowing AI tools to actually complete the transaction.
- Global Purchase Trends: 14 per cent of AI users globally have used an AI tool to finalize a purchase, which accounts for 9 per cent of the general population.
- The Shift: Consumers are increasingly relying on AI throughout the entire journey—from the initial search and consideration phase right through to the final payment.
The Challenge for Retailers
Despite the soaring consumer demand, McKinsey warns that many companies are not yet fully prepared to capitalize on this shift. The report found that during the product discovery and comparison phases, consumers prefer standalone AI platforms over the AI assistants operated by retailers.
However, this gap closes during the checkout process. Approximately 15 per cent of AI users utilize retailer-operated assistants for the final purchase, compared to 14 per cent using standalone tools. This is primarily because retailer assistants have direct access to essential infrastructure, including:
- Live inventory tracking
- Integrated payment systems
- Delivery and logistics data
Why Consumers Prefer AI Over Traditional Search
The influence of AI on buying behavior is becoming profound. AI users are 3.2 times more likely to view AI search tools as influential compared to traditional search engines. The primary drivers for this preference include:
- Efficiency: 79 per cent of respondents stated that AI saves them significant time.
- Precision: 81 per cent of users believe AI helps them filter and narrow down their choices more effectively.
"Consumers are clear they want to do more with AI. The question for retailers and brands is whether they are ready to capture that demand," the report stated.
To thrive in this new era of "agentic commerce," McKinsey suggests that brands must urgently improve their pricing data, product information, and inventory accuracy while strengthening their overall AI capabilities to turn this disruption into a growth engine.