The growing need and dependence of artificial intelligence (AI) has taken over almost all aspects of life, and the case is the same with shopping preferences. However, the influence in India has caught speed. As per EY Future Consumer Index, 62 per cent of Indian consumers have made purchases influenced by AI recommendations as compared to just 30 per cent globally. 

It is interesting to note that 61 per cent of Indian consumers find AI driven product recommendations extremely beneficial. Amid the growing dependence on AI, the concerns around data security and exposure of personal information is also growing. The report further highlighted that 77 per cent of Indian consumers express concern about the possibility of data breaches when shopping online, while 73 per cent worry about their private information being disclosed.

Moreover, 78 per cent of consumers prefer to shop on online platforms that provide human customer service support while 61 per cent are more inclined to share personal information with a human rather than through automated processes. In addition to this, 75 per cent of consumers acknowledged that they prefer to shop online and only visit stores which provide an exceptional experience, in contrast, only 41 per cent of global consumers feel the same.

Talking about the report, Angshuman Bhattacharya, Partner and National Leader – Consumer Product and Retail Sector, EY Parthenon said, “As consumers become more discerning in their choices and empowered to demand fair value for their money, retailers need to step up to be able to satisfy these demands. While Indian consumers are putting a lot of faith in artificial intelligence and other technologies, the human touch through authentic, trustworthy connections and engagement is becoming more important than ever before.”

Dependence on influencers…

Across boundaries, the consumers are drawn to follow content creators on social platforms primarily for the quality and authenticity of the content. However, influencers in India have gained a significant amount of popularity as 81 per cent of consumers follow some social media influencer, blogger or vlogger against only 45 per cent of global respondents admitted that they follow a social media influencer. 

Notedly, 60 per cent of Indian consumers find products recommended by influencers extremely trustworthy as compared to 27 per cent globally. According to the report, 84 per cent of Indian consumers have bought products solely based on an influencer’s recommendation or promotion. 

In the last six months in India, 51 per cent of the consumers have downloaded a retail app compared to 31 per cent globally. The report found that consumers are driven by tangible benefits such as discounts and exclusive deals. Despite the convenience of online shopping, Indian consumers do complain of challenges; the most common frustrations include receiving damaged goods (21 per cent), inadequate customer support (20 per cent), and obstacles in processing refunds (19 per cent).