Exploring the Role of Artificial Intelligence in Indian Commerce: Benefits, Hurdles, and Future Prospects

Abstract

This research proposal looks into the impact of AI on Indian businesses, focusing on its applications, benefits, challenges, and future potential. It analyses 10 studies on AI adoption across sectors like e-commerce, banking, manufacturing, and hospitality and identifies key themes such as AI\'s role in enhancing operational efficiency, the challenges of infrastructure and skills shortages, and the opportunities for growth in AI-driven industries. A comparative analysis depicts the contrast of AI adoption in various sectors. It reveals that banking and e-commerce lead, while others like education take a longer time in adopting due to infrastructural and resource limitations. It provides a good source for businesses planning to incorporate AI into their processes. The analysis proposes that AI integration is the practice in banking and e-commerce, while all other sectors are somehow still behind in line due to infrastructural and resource constraints. Future advancements in AI, together with the intersection of AI and many other growing technologies such as blockchain and IoT, are promising enough to transform the Indian industries. However, an organized effort involving government and the private sector in approaching issues on how to overcome the barriers and arrange robust digital infrastructure is very important. This research highlights essential sector-specific AI applications, thereby enabling industries to make informed decisions and optimize their processes to secure a competitive advantage in the changing digital front.

Introduction

Artificial Intelligence (AI) is revolutionizing various industries globally by enhancing efficiency, creativity, and competitiveness, with commerce being a key sector benefiting from AI through personalized customer experiences, optimized supply chains, and predictive analytics. India’s fast-growing economy and expanding digital infrastructure create significant opportunities for AI adoption in commerce, particularly in retail, e-commerce, and supply chain management. However, challenges such as infrastructure deficits, skill shortages, data privacy concerns, and ethical issues hinder widespread AI implementation.

The study aims to investigate AI’s impact on Indian commerce by analyzing current adoption levels, potential benefits, obstacles, and future trends. It seeks to fill a research gap, as most existing studies focus on global trends and overlook India’s unique market dynamics, including its diverse consumer base and fragmented market.

Theoretical frameworks like the Technology Acceptance Model (TAM), Diffusion of Innovations (DOI), and Resource-Based View (RBV) help explain AI adoption behavior among Indian businesses. Research findings show AI’s significant role in sectors such as e-commerce, manufacturing, banking, and hospitality, though adoption rates vary depending on resource availability and regulatory support.

Key challenges to AI adoption include inadequate infrastructure, high costs, lack of skilled professionals, regulatory hurdles, and ethical concerns. Small and medium enterprises (SMEs) are particularly affected by these issues. Overcoming these barriers through strategic investment, government support, skill development, and robust data protection policies is critical for leveraging AI’s full potential in India’s commercial sector.

The research emphasizes actionable recommendations to help businesses successfully integrate AI, thereby enhancing growth, competitiveness, and customer engagement in the Indian marketplace.

Conclusion

The integration of Artificial Intelligence (AI) in Indian commerce has the potential to transform industries, enhance customer experiences, and improve operational efficiency. While sectors like banking, e-commerce, and retail are already leveraging AI, others like education and manufacturing face challenges due to infrastructure limitations and skill gaps. Addressing these challenges and harnessing AI\'s potential can drive growth, innovation, and competitiveness in Indian businesses.

References

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Copyright

Copyright © 2025 Dr. Deepika Tiwari. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.