GenAI's Tryst With E-commerce From streamlining developer workflows to hyper-personalizing consumer experiences, leading e-commerce platforms are integrating AI into the fabric of operations.

Artificial Intelligence (AI) is helping businesses create experiences. A case which seemed near distant a few years ago. Although AI-powered customer service such as chatbots, product recommendations, and personalization have been part of e-commerce for years; current innovations and advances in e-commerce are taking it to the next level.

Generative AI (gen AI) is personalizing product descriptions, marketing content, and both internal and external business communications. From content creation, large-scale data analysis, streamlining developer workflows to hyper-personalizing consumer experiences, leading e-commerce platforms are integrating AI into the fabric of operations.

Beauty e-comm giant Nykaa saw a 20 percent increase in developer productivity after adopting GitHub Copilot, improving documentation and knowledge transfer. "As a consumer tech company, from day one we've been harnessing the power of technology to offer superior customer experiences and make shopping journeys delightful. This requires an immense focus on innovation, and genAI has bolstered our efforts by automating repetitive tasks, allowing our teams to now focus on solving complex issues with increased efficiency," said Falguni Nayar, MD & CEO, Nykaa.

From catering to millions orders per day to attending to large volumes of support chats daily during sales, Meesho optimally leverages gen AI solutions to tackle the dynamic challenges of customer support contact center. "This strategic move not only ensures seamless scalability during heightened demand but also enables sustainable cost optimization, marking a significant step forward in enhancing customer support efficiency at Meesho. Moreover, the implementation of these cutting-edge solutions has seen a substantial improvement in customer satisfaction, reinforcing our commitment to delivering exceptional experiences to our users," said Vidit Aatrey, co-founder & CEO, Meesho.

Generative AI is fundamentally reshaping e-commerce - not just in how consumers discover products, but in how businesses operate behind the scenes. It automates repetitive tasks across email marketing, fulfillment, and sales cycles to make sure the team focuses on more strategic tasks. According to the IDC AI opportunity study, retail organizations saw an average return of 3.6 times for every $1 spent on GenAI, and 3.3 times on broader AI investments - highlighting strong returns from AI-driven innovation in the sector.

AI can dramatically improve bottom line by helping brands identify best-selling products and optimize the e-commerce website or landing pages. Also, it optimizes pricing in real-time based on demand and competitor activity for maximum profitability on every sale.

"Microsoft is seeing India's e-commerce leaders shift from reactive to predictive operations using its AI platforms. In the fast-paced world of quick commerce, players like Blinkit and Magicpin are leveraging AI to streamline deliveries, minimize cancellations, accelerate issue resolution, and keep customers more informed throughout the process," said Dahnesh Dilkhush, chief technology officer, Microsoft India and South Asia.

Using the Azure solution, Blinkit, a quick commerce platform, generated thousands of personalized, media-rich recipes tied to curated product sets. This content boost led to daily customer engagement, an increase in GMV per active customer, and record-high CTRs during festive periods, making it one of the top-performing homepage assets.

"We believe AI has the power to transform how businesses interact with customers. AI integration has enabled us to cater to customers' unique needs and create an ever-evolving culinary and shopping experience," said Albinder Dhindsa, founder and CEO, Blinkit.

According to a Salesforce study, about 43 percent of consumers stop shopping from a brand after a poor customer service experience. Luckily, AI can change this by effortlessly delivering more contextual, personalized customer service while boosting customer satisfaction.

From reimagining product discovery, personalized journeys to enhancing customer service with intelligent agents and optimizing last-mile logistics in real time—AI is driving measurable impact. Myntra, for instance, launched AI-powered assistants like MyFashionGPT and MyStylist, helping customers shop smarter and drive cross-category engagement. "At Myntra, we are committed to pushing the boundaries of online lifestyle shopping experience, leveraging the latest in technology including AI and Generative AI. With shopping experiences such as MyFashionGPT, our conversational shopping assistant, Maya and personal stylist, MyStylist, we continue to help customers reimagine fashion possibilities. We have leveraged GenAI to improve the search relevance in our traditional search to understand more complex queries, such as trends," said Nandita Sinha, CEO, Myntra.

As the e-commerce sector experiences exponential growth, propelled by innovative technologies and evolving consumer preferences; Microsoft, is focusing on advancing generative AI models, "Looking ahead, we remain committed to making our AI platforms more intelligent, adaptive, and responsible—empowering retailers to personalize at scale, innovate faster, and lead through change. At Microsoft, we're proud to partner in shaping the future of India's commerce ecosystem," the CTO explained.

By 2030, the value of the generative AI sector is expected to grow to USD 110.8 billion. Further, generative AI is predicted to be responsible for 10 percent of all data generation by 2025, a stark increase from under one percent in 2021, as per Gartner's insights.