FSN E-Commerce Ventures, the parent company of Nykaa, is aiming to become an “AI-native” organisation, with plans to embed artificial intelligence across customer experience, operations, and technology development. At its 13th annual general meeting, the company said this transformation would redefine how consumers discover and shop for beauty and fashion products.
“This year will see our organisation transform rapidly, with us making best use of the transformative new AI developments happening across the globe,” Falguni Nayar, executive chairperson and CEO, said during the AGM.
She highlighted that AI will underpin every customer interaction, with in-house models built on first-party datasets. Nykaa is developing proprietary generative AI tools to power personalised conversations, blending content, education, and commerce. Its AI systems will be self-learning, strengthening with every consumer interaction and creating long-term competitive moats.
Personalisation through GenAI
“We are taking search to the next level – Through GenAI capabilities, we are bringing content, education and personalisation together to transform traditional search and create meaningful journeys for our consumers who are seeking answers from us for a product, a concern, a trend or anything else,” Nayar added.
Key initiatives include Nykaa Muse, an AI-powered personal stylist that curates looks tailored to individual preferences, occasions, and moods. The tool aims to turn fashion discovery from a chore into a moment of inspiration.
Boosting productivity and scale
On the development side, Nykaa has set a goal for 50% of its code to be AI-generated by the end of FY26, a move it believes will accelerate product rollouts and enhance productivity. In customer service, the company expects AI bots to handle half of all queries, delivering proactive and conversational support.
“Today, we have 40+ GenAI initiatives spanning customer experiences, tech product development, and productivity across functions from service to operations to finance to much more,” Nayar said.
The company expects organisation-wide productivity gains of up to 70% through AI adoption, embedding automation across functions such as operations, finance, HR, engineering, marketing, customer service, warehousing, IT, and analytics.
Nayar also emphasised that the company’s edge lies in its deep understanding of consumer behaviour, which allows AI systems to create powerful feedback loops and highly personalised shopping journeys.