Retailers tap AI to discover what shoppers think

Indian retailers are increasingly turning to artificial intelligence (AI) to solve brick-and-mortar stores’ oldest puzzles: what shoppers do before they buy and why they walk away.

- Vaishnavi Kasturi

From legacy companies to digital-first brands, retailers are using AI-powered computer vision through CCTVs, speech analytics and predictive inventory systems to understand customer behaviour, improve merchandising and optimize store operations.

The shift reflects a broader transformation in retail as AI becomes central across channels. Nearly nine in 10 retailers (89%) worldwide are either actively using AI or piloting AI projects, while 97% plan to increase AI investments in the next year, according to Nvidia's 2025 State of AI in Retail and CPG survey.

In India, retailers are moving beyond isolated AI pilots towards enterprise-wide deployment, as shoppers become increasingly 'channel agnostic', expecting seamless experiences across physical stores, apps and websites, according to a report by consultancy firm Deloitte.

Deloitte estimates India’s $1 trillion retail market will nearly double to $1.9 trillion by 2030, while AI spending is projected to rise from $7-8 billion in FY23 to $20-22 billion by FY27, growing 35% annually.