"Transforming E-Commerce with AI: Revolutionizing Customer Experience, Efficiency, and Innovation"

Author : Gladys Abreo NKES degree college of arts commerce and science, Wadala

Introduction

The Indian e-commerce market is experiencing rapid growth, driven by its large population, increasing internet penetration, and rising smartphone adoption. This has led to a significant

surge in online shopping, with the market expected to reach $163 billion by 2026, growing at a CAGR of 27%. By 2030, India is predicted to lead global online shopping with 500 million

shoppers. The number of online shoppers in rural India is projected to grow at a CAGR of 22%, while urban India will see a 15% increase by 2026. Government initiatives like Digital India, Jan Dhan Yojana, and the BharatNet Project have shaped India's digital economy, while the Goods & Services Tax (GST) has streamlined business operations. The National Logistics Policy aims to improve logistics and reduce costs, facilitating e-commerce growth. Additionally, the rise of mobile-first content and local language accessibility is unlocking a $53 billion market potential, catering to over 540 million Indian language users. India’s e-commerce sector benefits from significant policy support, such as the recent guidelines that allow 100% FDI in marketplace models. The rollout of 5G technology will further boost the sector. The B2B e-commerce marketplace is projected to reach $20 billion by FY25, growing at

an impressive CAGR of 55-60%. The rise in e-commerce is expected to push third-party logistics shipments to 17 billion over the next seven years, supported by a base of 936 million internet subscribers.Investment in India’s e-commerce sector is also increasing. Amazon has committed to investing$26 billion by 2030, with $11 billion already invested. Google is investing $350 million in Flipkart as part of a $1 billion funding round, while Tata Group and Walmart are also making substantial investments, further fueling growth in India’s e-commerce and digital infrastructure. Understanding AI in E-Commerce and Business Automation To fully grasp the impact of AI in e-commerce, it's important to first understand what AI is and how it operates within this sector.