GenAI could boost productivity in India’s retail industry by 35-37% in five years: EY India report
- IBEF
- February 14, 2025
According to a recent report by EY India, generative artificial intelligence (GenAI) could enhance productivity in India’s retail industry by 35-37% over the next five years. The report, titled ‘The AIdea of India: 2025’, reveals that 48% of Indian businesses have already initiated proof of concept (PoCs) for GenAI solutions, while another 32% are planning to invest or have allocated budgets for AI adoption. The report indicates that AI-driven solutions will significantly transform retail, consumer, and e-commerce sectors, offering vast opportunities for organisations.
According to Angshuman Bhattacharya, Partner at EY-Parthenon, the expected productivity impact of GenAI is substantial, ranging from 40% to 45% for insights-driven pricing, promotions, and customer experiences. Store operations are predicted to see efficiency improvements of 38% to 40%. Retail companies are increasingly adopting AI for personalising shopping experiences, optimising demand forecasting, and enhancing warehouse operations. Additionally, AI is being leveraged for manufacturing quality control and predictive maintenance. Global trends, including AI adoption by brands like H&M, Coca-Cola, and Amazon Go, reflect similar transformations. While the immediate benefits of GenAI include cost reduction (56% of survey respondents), revenue growth, and customer satisfaction (44%), the report stresses that the success of GenAI will depend on balancing automation with human-centric experiences for long-term success.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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