AI in E-commerce: The Future of Intelligent Shopping

Introduction: Why AI in E-commerce Is a Game-Changer in 2025

The way India shops is undergoing a seismic shift. Gone are the days when online retail simply meant browsing static product pages, applying a filter or two, and clicking “Buy Now.” In 2025, e-commerce is no longer just digital—it’s intelligent. Powered by AI, online shopping is being redefined through hyper-personalization, predictive experiences, and near-instant gratification. And this revolution isn’t being led by Silicon Valley alone. India, with its exploding internet base and digital-first Gen Z and millennial population, is at the center of this transformation.

AI is not a buzzword anymore—it’s the new foundation. According to a report, over 60% of retail and e-commerce brands globally plan to increase AI spending in 2025. Closer to home, leading Indian players are investing in tools that improve personalization, visual discovery, AI-led support, and marketing automation. And it’s not just the Amazons and Flipkarts of the world. D2C startups, fashion aggregators, and mobile-first platforms like Glance are aggressively building intelligent shopping ecosystems that feel less transactional and more intuitive.

Why now? Because shoppers have changed. They want less noise, more relevance. They expect experiences to adapt to them—not the other way around. They demand utility, not just novelty. And AI is the only way to deliver that at scale. This pillar page explores how AI is changing the game for online retailers and consumers alike—right here in India. We’ll walk through the top applications, benefits, risks, future trends, and the unique role Glance is playing in shaping what comes next.

If you’re a business, this is your blueprint. If you’re a curious consumer, this is your cheat sheet. Either way, one thing’s certain—e-commerce powered by AI isn’t coming. It’s already here.

What Is AI in E-commerce and Why Is It Booming Now?

Artificial Intelligence in e-commerce refers to a suite of technologies that allow machines to analyze data, recognize patterns, and make decisions—mimicking human intelligence but at machine speed and scale. In the context of retail, AI’s role is to understand what users want (even before they explicitly say it), and to deliver those experiences in real time. Whether that’s surfacing the right product, recommending the right look, predicting inventory shortages, or adjusting pricing—it’s all powered by algorithms that learn from behavior.

In India, this is happening faster than anywhere else. With 800+ million internet users, over 600 million smartphones, and rising disposable income across Tier 2 and Tier 3 cities, Indian consumers are skipping the desktop era and diving straight into mobile-first, AI-enabled experiences. For brands, this creates both urgency and opportunity.

AI in e-commerce includes:

• Machine Learning: For analyzing browsing, purchase, and cart data to personalize content.
• Natural Language Processing (NLP): Powering chatbots, voice assistants, and multilingual support.
• Computer Vision: Enabling visual search, AI-driven product tagging, and try-on experiences.
• Predictive Analytics: Forecasting demand, returns, pricing fluctuations, and marketing performance.
• Generative AI: Crafting personalized product descriptions, chat replies, and creative campaigns.

This shift isn’t just tech-driven—it’s behavior-driven. A recent survey revealed that 49% of online shoppers in India are more likely to buy from a brand that offers tailored recommendations. This isn’t optional anymore. AI isn’t a competitive advantage—it’s a survival essential.

Furthermore, global events like the pandemic accelerated the demand for digital-first experiences. Brands that previously relied on static websites or broad targeting strategies suddenly realized the importance of real-time optimization. Indian platforms, known for their jugaad (frugal innovation), began integrating low-cost AI tools that now rival international benchmarks.

In essence, AI in e-commerce is booming because it meets users where they are—mobile-first, choice-overloaded, time-constrained, and craving relevance. And the platforms that adapt will be the ones that thrive.

Top Use Cases of AI in E-commerce You Need to Know

While AI sounds futuristic, its most powerful applications in e-commerce are grounded in everyday user needs. In fact, the most successful implementations are often invisible to the consumer—but deeply felt. Here are the five major use cases transforming online shopping in India today:

1. Personalization Engines That Know You Better Than You Do

At the core of AI in e-commerce lies personalization. The ability to predict and deliver what a shopper wants—even when they don’t know it themselves—is what separates intelligent commerce from generic catalog browsing.

AI personalization algorithms consider multiple inputs: purchase history, time spent on product pages, click patterns, location, language preference, and even device type. The result? Product suggestions, offers, and content tailored to individual behavior. For instance, Myntra’s Style Studio uses AI to recommend outfits, while Amazon’s home screen evolves for each user. Glance AI Looks has taken this to a visual-first level—using selfies to generate customized fashion recommendations presented in a magazine-style layout.

What makes this revolutionary is its adaptability. A 25-year-old tech professional in Bengaluru browsing sneakers on Monday morning sees a completely different experience than a 43-year-old homemaker in Pune shopping for kitchenware on Sunday night. The backend logic adapts in milliseconds, creating a curated journey that feels personal, frictionless, and intuitive.

Personalization also drives metrics that matter: increased time on site, higher cart values, lower return rates. According to McKinsey, personalization can deliver five to eight times the ROI on marketing spend and lift sales by 10% or more.

But this isn’t just about upselling. It’s about user trust. When a brand anticipates your needs and respects your preferences, it builds loyalty in a crowded market. AI-powered personalization is how that loyalty is earned—quietly, effectively, and at scale.

Benefits of AI in E-commerce for Indian Brands and Consumers

Artificial Intelligence is redefining value creation in e-commerce. For businesses, it promises smarter decisions, operational efficiencies, and increased profitability. For consumers, it delivers smoother, faster, and more meaningful interactions. The intersection of these two perspectives is where the true benefit of AI in e-commerce lies.

For Brands:

• Increased Conversion Rates: Personalized journeys result in higher engagement. Shoppers showing relevant items are more likely to buy—and to buy more.
• Reduced Cart Abandonment: AI systems trigger reminder emails or retargeting ads in real time.
• Optimized Inventory and Logistics: Predictive models prevent overstocking and understocking by anticipating product demand.
• Smarter Ad Spend: AI helps determine which audience segments are most profitable, ensuring brands invest in high-ROI channels.
• Efficient Customer Support: AI chatbots reduce human workload, answer common queries, and escalate only when necessary.

For Consumers:

• Hyper-Relevance: Users don’t waste time filtering through irrelevant products—they see what they want, instantly.
• Assisted Shopping: From chatbots to AI looks, discovery becomes conversational and enjoyable.
• Speed & Convenience: AI-enhanced logistics means faster delivery, precise tracking, and smarter customer communication.
• Consistent Experience: AI ensures experiences feel uniform across web, app, social, and even smart TVs.

The Indian consumer is particularly well-positioned to benefit. With the rise of regional language adoption and Gen Z preference for visual-first formats, AI fills the gap by translating intent into discovery. Platforms like Glance go beyond static browsing, offering a more immersive and culturally attuned experience. It’s not just what AI shows you—it’s how it understands you that changes everything.

Challenges, Costs & Ethics of AI in E-commerce

While the benefits of AI in e-commerce are compelling, they do not come without challenges. As platforms rush to integrate AI-driven solutions, it’s critical to address the real-world constraints, ethical implications, and operational risks that come with deploying AI at scale—especially in a market as diverse and dynamic as India.

1. High Implementation Costs (Especially for SMBs)

Building or even integrating AI systems isn’t always cheap. Custom AI solutions often require deep expertise, quality data pipelines, ongoing model training, and expensive compute infrastructure. While cloud-based tools and AI-as-a-Service models are lowering the entry barrier, many Indian SMBs still find it hard to justify the upfront cost—especially if ROI isn’t immediate.

For example, a D2C beauty brand in Mumbai may not have the capital to invest in AI personalization tools. Even with low-code platforms available, the complexity of managing AI models can become a deterrent. Without scale, smaller businesses may lag behind in delivering modern shopping experiences.

2. Data Quality and AI Bias

AI models are only as good as the data they are trained on. In India, where data collection often spans multiple languages, dialects, devices, and regions, quality becomes an issue. A poorly trained AI model can misinterpret intent or reinforce harmful stereotypes. For instance, if past purchasing data skews toward urban males, the model may under-serve women or regional shoppers.

Bias is also a growing concern in global AI discussions. If unchecked, it can lead to unfair pricing, misdirected promotions, or exclusionary recommendations. Ensuring diverse, representative, and clean datasets is not just a technical issue—it’s an ethical imperative.

3. Data Privacy and Regulatory Uncertainty

India’s new Digital Personal Data Protection (DPDP) Act is expected to shape how brands collect, process, and store user data. With increasing scrutiny around consent, data residency, and third-party sharing, AI systems must now be built with privacy at their core.

Compliance isn’t optional. Platforms must design transparent data flows, allow for opt-outs, and clearly communicate how AI decisions are made. Tools like Glance are expected to lead by example—offering users the ability to control their data, personalize their experience, or turn off AI features altogether.

4. Over-Automation and Loss of Human Touch

There’s a fine line between efficiency and alienation. While AI reduces human workload, over-automation can make users feel like they’re interacting with machines rather than brands. Tone-deaf product suggestions, repetitive chat responses, or impersonal marketing messages can create distrust.

Indian consumers still value emotional resonance and cultural nuance. AI must work with human teams, not replace them entirely. Hybrid support models—where bots assist, but humans resolve—can help brands strike the right balance.

5. Lack of Talent and In-House Capability

Another hurdle for many businesses is the lack of skilled AI professionals. Hiring data scientists, ML engineers, or AI product managers remains expensive and competitive. For mid-sized e-commerce players, outsourcing AI development can sometimes feel like flying blind.

This creates an ecosystem gap—one that may be addressed by ecosystem enablers like SaaS platforms, accelerator programs, and government initiatives promoting AI literacy.

In Summary:
AI in e-commerce is not a magic wand. It's a powerful tool—but one that requires investment, regulation, governance, and human oversight. For Indian businesses, this means treating AI not just as a feature, but as a long-term strategic capability.

AI Trends That Will Define E-commerce in 2025–2027

Artificial Intelligence in e-commerce isn’t just evolving—it’s accelerating. As we look toward the next three years, the trends that will define the Indian retail landscape are not just about automation or personalization. They are about redefining the very nature of online shopping. This section highlights the most impactful AI-driven trends that are expected to shape Indian e-commerce from 2025 through 2027.

1. Voice Commerce in Vernacular Languages

Voice search has already begun to influence e-commerce discovery patterns globally. But in India, where linguistic diversity is massive, voice-first interfaces in regional languages will become game-changing. AI-powered voice assistants that can understand Hindi, Tamil, Bengali, Marathi, and other local languages will allow users from Tier 2 and Tier 3 cities to interact with platforms without typing. This opens e-commerce to millions of new users.

Google Assistant and Amazon Alexa already support multiple Indian languages, and we expect AI commerce platforms to follow. Expect to see retailers deploying NLP tools to convert voice queries into contextual product matches—removing yet another barrier between intent and action.

2. Generative AI for Product Content and Visuals

The era of auto-generated e-commerce is upon us. Generative AI is now capable of creating high-quality product descriptions, images, taglines, and promotional assets with minimal human input. For Indian brands with massive catalogs—fashion, electronics, beauty—this means faster time-to-market and reduced content production costs.

For example, platforms like Copy.ai or Jasper can write entire PDPs (Product Detail Pages) tailored to specific audience segments. Visual AI tools like Midjourney and DALL·E can produce banner creatives, promo mockups, and even AR filters for try-on features. Expect Indian marketplaces and D2C brands to embed these into their content management workflows by default.

3. AI-Powered Video Commerce and Livestream Shopping

Livestream shopping is already a hit in China and the U.S., and India is catching up fast. With platforms like YouTube Shorts, Glance, Moj, and Instagram pushing short-form video, AI will play a central role in scaling personalized video commerce.

Expect to see:

• AI-curated product video feeds based on user history
• Real-time sentiment analysis during livestreams
• Dynamic offers triggered by viewer interaction

Glance is already tapping into this behavior with its lock screen discovery platform. Integrating AI commerce tools within video experiences will become a standard offering.

4. Predictive and Emotion-Aware AI Engines

Imagine your e-commerce app knowing you’re likely to buy activewear on a Monday morning, or suggesting skincare products because you just searched for “sleepless nights.” This isn’t sci-fi—it’s the next evolution of predictive AI.

Future platforms will combine behavioral analytics, environmental cues, and even biometric signals (like sleep trackers) to create deeply personalized product nudges. Emotion-aware AI, which reads tone, gestures, and sentiment in interactions, will make digital shopping feel more human. It’s already being piloted in markets like Japan and South Korea, and Indian platforms are not far behind.

5. Regulatory Frameworks and Responsible AI

As AI matures, governments will step in. India’s DPDP Act is the first step toward regulating how AI systems handle consumer data, explain decisions, and avoid bias. From 2025 onwards, platforms will need to adopt ethical AI practices as a core function—not an afterthought.

This means:

• Transparent consent systems
• Algorithm explainability
• Redressal mechanisms for AI errors
• Human-in-the-loop governance

Leading players like Glance are expected to set benchmarks for responsible AI commerce in India, offering clear opt-ins, transparency dashboards, and controllable personalization settings for users.

In Summary:
The future of AI in Indian e-commerce isn’t about replacing humans—it’s about empowering them. With voice, video, generative content, emotional intelligence, and ethical regulation all converging, the next three years will redefine how we discover, decide, and delight in online shopping.

How Glance Is Shaping the Future of AI Commerce

Glance is not just keeping up with AI trends—it’s setting them. As one of India’s most innovative AI-powered platforms, Glance is redefining how consumers engage with e-commerce by transforming idle screens into discovery engines, delivering hyper-personalized shopping journeys that feel intuitive, delightful, and refreshingly human.

1. Glance AI Looks: From Selfie to Style in Seconds

The cornerstone of Glance’s AI commerce vision is Glance AI Looks—a feature that lets users upload a selfie, select a persona, and instantly receive fashion looks generated by AI. But this isn’t your typical outfit suggestion tool. What makes it revolutionary is its blend of:

• Visual AI and computer vision: Understanding facial features, tones, and preferences.
• Persona selection: Allowing users to define how they want to shop—gender, vibe, body type.
• Magazine-style layout: Unlike static shopping grids, Glance presents AI-generated looks in a swipeable, editorial format designed for mobile screens.
• Real-time engagement: Users can share, download, or save looks to their lock screen.

This reimagines discovery. Instead of searching, users are inspired. Instead of endless scrolling, they get instant options styled to their personality. For Indian shoppers who love experimenting with trends but are often overwhelmed by choices, this is a game-changer.

2. Turning the Lock Screen into an E-commerce Entry Point

While most platforms compete for app installs, Glance wins by being already there—on your phone’s lock screen. The Glance Smart Surface activates after 5 minutes of idle time, presenting content (including AI Looks and product tiles) in an ambient, always-on mode.

This innovation removes friction from traditional e-commerce. There’s no app launch, no login, no endless navigation. The user is greeted by:

• Live AI-curated recommendations
• Seasonal styling collections
• Interactive product cards with Buy Now or Add to Wishlist options

It’s not just passive browsing. Users can scroll, click deeper, and even personalize what they see—all without unlocking their phone.

3. Metrics That Signal Product-Market Fit

Glance’s internal reports (Feb 2025) already show strong traction:

• AI Look generation rates are increasing week over week
• Download and Share clicks are growing, signaling virality
• “Add to Lock Screen” usage is showing higher product recall and brand stickiness
• Buy Now clicks from AI Looks are translating to high-intent traffic

Glance isn’t just offering AI—it’s building a behavior around it. And that’s a harder, more valuable challenge to solve.

4. What’s Coming Next: Try-On, Deep Personalization, and Shop-by-Mood

Glance is gearing up to launch a Try-On feature—allowing users to see themselves in recommended outfits using AR overlays. Combined with emotion-aware AI and contextual styling (e.g., festive, date night, work), users will soon shop not by category, but by how they feel.

Imagine waking up on a rainy morning, swiping your phone, and being shown 3 cozy, monsoon-appropriate looks styled just for you—one-click away from checkout. That’s what Glance is building: a shopping experience that feels personal, timely, and effortless.

In Summary:
Glance is not following the AI commerce trend—it’s building the infrastructure for it. By embedding personalization, product discovery, and engagement into the very first screen a user sees, it’s turning passive moments into high-value conversions. In a crowded market of apps and ads, Glance is making AI shopping ambient, delightful, and uniquely Indian.

Conclusion: AI in E-commerce Is Here—And It’s Personal

AI is no longer a “nice-to-have” in e-commerce—it’s the new foundation. It’s what enables relevance, speed, and delight in a world of too many options and not enough time. For Indian shoppers, AI brings joy back into digital retail. For Indian businesses, it offers scalability, precision, and competitive edge.

From personalized recommendations to emotion-aware shopping journeys, we’re witnessing the rise of a smarter, more intuitive digital marketplace. Platforms like Glance are not just responding to this change—they’re leading it. By fusing AI with everyday experiences like lock screens and visual discovery, they’re reshaping how India shops in 2025 and beyond.

The next era of ecommerce isn’t about finding products. It’s about products finding you.

Explore the future of AI-powered shopping with Glance AI today.

FAQs – Common Questions About AI in E-commerce

These frequently asked questions are designed to directly address the queries Indian consumers, entrepreneurs, and digital teams are most likely to have. They are written in a natural, conversational tone to optimize for Google’s AI Overviews and voice search readiness.

1. What is AI in E-commerce and how does it work?

AI in e-commerce uses data, algorithms, and machine learning to personalize shopping, automate operations, and enhance customer experiences. It helps platforms understand what users want—even before they search for it.

2. Can small businesses use AI for their online stores?

Absolutely. Today, many no-code and low-cost AI tools are available that don’t require large budgets or teams. Platforms like Shopify Magic, Zoho Zia, and integrations with Glance AI can help small brands offer intelligent experiences.

3. What are the top AI tools in e-commerce today?

Some popular options include:

• ChatGPT for content creation
• Dynamic Yield for personalization
• Prisync for pricing optimization
• Yellow.ai and Haptik for customer support
• Glance AI for visual product discovery

4. How does AI improve the shopping experience for consumers?

AI:

• Recommends better, more relevant products
• Speeds up checkout and delivery
• Powers chatbots for 24/7 support
• Makes discovery visual and fun (e.g., AI Looks from Glance)

5. Is AI expensive to implement?

Not always. Many cloud-based services offer AI features as part of their packages. The key is to start small—personalized emails, product recommendations, or chatbot support—and then scale.

6. What are the risks of using AI in e-commerce?

• Privacy issues if data isn’t handled ethically
• Algorithmic bias from unbalanced training data
• Loss of human touch in over-automated flows
• High setup cost for complex systems (especially for SMBs)

7. How is AI being used by platforms like Glance.com?

Glance uses AI to turn lock screens into shopping surfaces. Its AI Looks feature creates fashion recommendations from selfies, allowing users to engage, save, share, or shop directly—without even unlocking their phone.