It seems Indian brands are scrambling to catch up in the Gen AI race. While 66% of Indian brands are already flaunting their generative AI capabilities, their efforts are failing to impress the increasingly demanding Indian consumer, according to Adobe’s report. In fact, 81% of consumers expect brands to fully embrace generative AI by the end of 2024. This raises the question: Are brands utilizing AI’s potential to the fullest, or just skimming the surface?
“Well, it shows that Indian consumers are receptive to the winds of change. Consumers see value in generative AI as it helps in the personalization of messaging, customisation of products/choices, and narrowcasting of communication. So, it seems that the Indian consumer is alert to the possibilities of new tech. However, responsible AI is critical to the brand experience process. Sources need to be clearly cited, fake information must be avoided, and the entire ethos should be built on principles of consumer value, trust, and transparency,” Sanjay Trehan, digital and new media advisor, told BrandWagon Online.
Let’s break it down. Seven in 10 Indian marketers recognize the urgent need to embed AI into their customer experiences. Yet, if urgency were enough, the gap between consumer expectations and actual delivery wouldn’t loom so large. Indian consumers, ever the perfectionists, are already miles ahead, imagining a utopia where AI not only understands them but anticipates their every whim. Furthermore, the report does not just highlight the adoption gap—it throws the spotlight on an even bigger concern: responsibility. 95% of consumers demand clarity on how AI works and where it sources its data, proving that Indian consumers may want brands to embrace AI, but not at the cost of transparency or ethics.
“Generative AI is changing the game in advertising by combining creativity with data-driven precision, allowing brands to create highly personalized campaigns that truly connect with their audiences while achieving superior ROAS,” Meher Patel, founder of Hector AI, added.
Even privacy—a buzzword often thrown around without much thought—has real weight in this debate. 61% of Indian consumers want brands to prioritize their privacy, while nearly half (46%) demand transparency on data usage. And here’s the kicker: Many also want brands to take a firm stand on ethics and bias in AI. During the third quarter of 2024, data breaches exposed more than 422 million records worldwide, according to Statista, a market research firm.
Despite these concerns, Indian consumers aren’t completely jaded. Generative AI is already making waves in e-commerce, with 90% of consumers saying it has improved their shopping experiences. From suggesting gift ideas for special occasions to designing custom products, it can be said that AI is giving online shopping a glow-up.
“I think this trend is an important underlying push toward communication based on innovation. Customers today do not want to be mere audiences; they need meaningful interactions with brands—interactions that are specific, relevant, and meaningful,” said Vipul Khanna, co-founder of Posh Pitara.
Travel, too, is ripe for an AI revolution. Consumers are excited about AI simplifying price comparisons, planning itineraries based on personal preferences, and even mapping out nearby amenities. The report reveals that consumers essentially want AI to do all the heavy lifting, so they can enjoy their vacation without the stress of planning.
But here’s the rub: Generative AI’s potential is only as good as its execution. While Indian brands are ahead of the curve in APAC when it comes to adoption, they’re still struggling to meet the nuanced and high expectations of Indian consumers. “Alas, the use of generative AI offers a series of benefits, but like every other advantage, it has its drawbacks as well. Minimizing exploitation and ensuring the moral use of artificial intelligence for content creation are vital. On one hand, brands should seize all the opportunities that AI offers; on the other, they must remember that people do not like robots, and they do not want to communicate with brands that look, act, and sound like robots. In the long run, it is the brands that incorporate human-centered values blended with technology that will thrive,” Khanna added.
At the bottom of this rabbit hole lies the verdict: Despite Indian brands sprinting toward AI adoption, it’s no longer enough to adopt technology for the sake of innovation. Brands must align AI capabilities with real consumer needs and values. “It’s becoming a consumer expectation. This technology empowers brands to deliver hyper-personalized, culturally resonant, and real-time interactions at scale, addressing India’s linguistic and demographic diversity. However, the real leadership challenge lies in adopting generative AI responsibly—ensuring ethical use, protecting consumer data, and maintaining transparency. Brands that rise to this challenge will not only meet consumer expectations but also set the benchmark for trust and innovation in the years to come,” said Ajay Kulkarni, business head at YKone Barcode. Until then, the gap between expectation and delivery will remain a glaring reminder of missed opportunities.