Indian Economy News

Over 70% of Indian retailers plan to adopt Gen AI over the next 12 months: EY survey

  • IBEF
  • January 19, 2024

According to a recent survey conducted by EY, a prominent global consulting firm, the retail landscape in India is set to undergo a significant transformation as more than 70% of Indian retailers are gearing up to embrace Generative Artificial Intelligence (Gen AI) within the next 12 months. The primary objectives behind this strategic move include enhancing customer experience, fostering innovation, and streamlining operational costs. Interestingly, 6% of the surveyed Indian retailers have already implemented Gen AI, underscoring its perceived value and immediate impact.

As global retail investments in artificial intelligence currently stand at US$ 5 billion, industry experts predict a substantial surge to US$ 31 billion by 2028. Notably, the EY survey reveals that a staggering 88% of respondents within the retail sector believe that Gen AI will exert a medium to high impact on their business operations. The potential implications of this adoption are profound, with the EY report suggesting that by 2025, the integration of Gen AI could contribute to a remarkable 20% increase in the profitability of the retail sector in India. This highlights the growing recognition of the transformative power of AI in reshaping the dynamics of the retail industry and underscores the urgency for businesses to leverage this technology for sustainable growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.