A Study on Pros and Cons of Transforming Digital Commerce through Generative AI Applications in India

Abstract

The rapid integration of generative AI in digital commerce is transforming the landscape of online business in India. This study explores the advantages and challenges associated with using generative AI applications in Indian digital commerce. On the positive side, generative AI enhances customer experience through hyper-personalization, automates customer service with chatbots, streamlines content creation for marketing, and optimizes product recommendations. These applications enable businesses to scale operations and respond to consumer demands more dynamically, catering to diverse linguistic and cultural demographics across India. However, the deployment of generative AI in digital commerce also brings challenges, including data privacy concerns, the high cost of AI infrastructure, potential biases in AI-generated content, and the regulatory uncertainties around AI use. Furthermore, smaller businesses may find it challenging to compete due to limited resources to invest in generative AI technologies. This study aims to provide a balanced view by examining generative AI's potential benefits and drawbacks in transforming digital commerce, ultimately contributing to a deeper understanding of how Indian companies can strategically adopt AI to remain competitive and compliant in the evolving marketplace.