A Review Paper on AI Transformation of the Indian Retail Industry

Akhilesh Dixit; Sakshi Chaubey

doi:10.69968/ijisem.2025v3si2362-365

Authors

Akhilesh Dixit Associate Professor & Head Department of BBA ,Siddharth University Kapilvastu, Siddharth nagar, Uttar Pradesh, India
Sakshi Chaubey 2Research scholar, Faculty of Commerce, Siddharth University Kapilvastu, Siddharth nagar, Uttar Pradesh, India

DOI:

https://doi.org/10.69968/ijisem.2025v3si2362-365

Keywords:

Artificial Intelligence (AI), Indian Economy, Economic Impact, Precision Farming, Manufacturing Efficiency

Abstract

AI integration is causing a major shift in the Indian retail sector. In this era of rapid change in technologies, retailing is significantly affected by AI-generated technologies (Shankar 2018) As per the latest report of Technavio Plus, the online fashion retail market in India is projected to expand by approximately US$ 52 billion at a CAGR of 25.2% between 2023 to 2028. AI is revolutionizing various aspects of the retail industry, ranging from inventory and supply chain management to customized marketing and customer experience. In India, retailers are using AI-powered solutions more frequently to improve decision-making, understand customer behavior and simplify many processes.

The rapid growth of e-commerce, the easy access to big data, and the increasing adoption of internet are driving the AI transformation in the Indian retail industry. Retailers may provide individualized shopping experiences, enhance demand forecasts, and optimize pricing strategies by using AI real-time analysis of massive volumes of data.AR, VR, and chatbots also help improve customer service. this paper analyses the impact of AI and technology-enabled services on the Indian retail industry with the help of various research findings, reports, and available information. As a result, the study finds that Artificial Intelligence is increasing operational efficiency and triggering innovation in retail space, and preparing Indian retailers to compete more efficiently in globalised market. However, there are many challenges and obstacles such as the requirement of trained personnel, data privacy, and integrating AI with the current system, etc. Despite of many challenges Indian retail market will grow even in small cities.

References

[1] pib.gov.in

[2] http://www.ibef.org

[3] Shankar, Venkatesh. (2018). How Artificial Intelligence (AI) is Reshaping Retailing. Journal of Retailing. 94. vi-xi.https://doi.org/10.1016/S0022-4359(18)30076-9

[4] Kaur, K., Singh, P., Kaur, P. (2021). A Review of Artificial Intelligence Techniques for Requirement Engineering. In: Singh, V., Asari, V.K., Kumar, S., Patel, R.B. (eds) Computational Methods and Data Engineering. Advances in Intelligenthttps://doi.org/10.1007/978-981-15-7907-3_20

[5] Systems and Computing, vol 1257. Springer, Singapore.https://doi.org/10.1007/978-981-15-7907-3_20

[6] Haenlein, M., Kaplan, A., Tan, C. W., & Zhang, P. (2019). Artificial intelligence (AI) and management analytics. Journal of Management Analytics, 6(4), 341-343.https://doi.org/10.1080/23270012.2019.1699876

[7] Chi-Hsien, K., & Nagasawa, S. (2019). Applying machine learning to market analysis: Knowing your luxury consumer. Journal of Management Analytics, 6(4), 404-419.https://doi.org/10.1080/23270012.2019.1692254

[8] D. Grewal, A. Roggeveen, J. Nordfält. The Future of Retailing. Journal of Retailing, 2017, 93(1): 1-6.https://doi.org/10.1016/j.jretai.2016.12.008

[9] M, Dhadurya & Dokku, Srinivasa & Nagamalleswara, Veerla & Srinivas, Koniki & Challa, Siva Kumar & Narayana, M. (2023). Impact of Artificial Intelligence on the Indian Retail Industry. Financial Engineering. 1.316-325.https://doi.org/10.37394/232032.2023.1.30

[10] Bedi, K., Bedi, M., & Singh, R. (2022). Impact of Artificial Intelligence on Customer Loyalty in the Indian Retail Industry. In Adoption and Implementation of AI in Customer Relationship Management (pp. 26-39). IGI Global.https://doi.org/10.4018/978-1-7998-7959-6.ch002

[11] Begley, S., Fox, R., Lunawat, G., et al. (2018) How analytics and digital will drive next generation retail merchandising. Available at:https://www.mckinsey.com/industries/retail/our insights/how-analytics-anddigital-will-drivenext-generation-retail-merchandising.

[12] Bedi, K., Bedi, M., & Singh, R. (2022). Impact of Artificial Intelligence on Customer Loyalty in the Indian Retail Industry. In Adoption and Implementation of AI in Customer Relationship Management (pp. 26-39). IGI Globalhttps://doi.org/10.4018/978-1-7998-7959-6.ch002

[13] Noor, A., Saeed, M. A., Ullah, T., Uddin, Z., & Ullah Khan, R. M. W. (2022). A review ofartificial intelligence applications in apparel industry. The Journal of The Textile Institute, 113(3), 505-514https://doi.org/10.1080/00405000.2021.1880088

[14] Anica-Popa, I., Anica-Popa, L., Rădulescu, C.,& Vrîncianu, M. (2021). The integration of artificial intelligence in retail: benefits, challenges and a dedicated conceptual framework. Amfiteatru Economic, 23(56), 120-136.https://doi.org/10.24818/EA/2021/56/120

[15] Sicular, S., Hare, J., Brant, K. (2019). Hype Cycle for Artificial Intelligence, 2019. G00369840, 25 July. Gartner.

[16] artner/toptrends-on-the-gartnerhype-cycle-for-artificialintelligence-2019/.

[17] Cao, L. (2021), Artificial intelligence in retail: applications and value creation logic, International Journal of Retail and Distribution Management, 49 (7),P958-976https://doi.org/10.1108/IJRDM-09-2020-0350