AI in retail for the agentic era: Aspiration to action
September 2025
As India’s retail sector approaches US$2 trillion by 2030, the role of technology, particularly artificial intelligence (AI), is no longer peripheral. Technology has a foundational role now. This report offers a forward-looking lens into how AI is redefining the rules of engagement, operations and innovation across the retail value chain.
Key themes driving AI adoption in the retail space
- Rise of the channel-agnostic shop
- Digitalisation and e-commerce boom
- Urbanisation and changing family dynamics
- Growth of omnichannel retailing
- Growing demand for customised and sustainable products
- Premiumisation leading growth
- Emerging technologies in AI
- Increasing spending power of customers
AI is emerging as a critical enabler for value realisation in retail. By investingin AI, companies can unlock measurable improvements across three dimensions: Efficiency, Experience and Intelligence.
Way forward and strategic implications
The retail industry stands at the cusp of a transformative era, driven by the convergence of AI, immersive technologies and sustainability imperatives. As AI continues to reshape retail, businesses must move from experimentation to scaled execution. The way forward lies in:
