India tops global AI adoption race as retailers, FMCG firms deploy technology across operations: Deloitte-FICCI

India has emerged as the global leader in artificial intelligence (AI) adoption among the world's top 15 countries, with companies increasingly embedding the technology across customer engagement, product innovation, demand forecasting and supply chain management rather than limiting it to isolated productivity tools, according to a Deloitte India-FICCI report.

The report, Consumer Trends IGNITEing Growth and Governance, says AI is becoming the backbone of India's rapidly evolving consumer economy, helping businesses improve efficiency while delivering more personalised shopping experiences.

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India's consumer economy is expected to approach US$1.9 trillion by 2030, with Deloitte saying future growth will depend on how effectively businesses leverage AI, resilient operations, connected commerce ecosystems and consumer insights to meet changing consumer expectations.

"AI moves to the core of business operations," the report noted, highlighting that Indian organisations are increasingly deploying the technology across consumer engagement, product innovation, demand forecasting and supply chain management to drive productivity and growth.

AI reshaping retail and FMCG

According to the report, AI is no longer confined to chatbots or customer service. Retailers and FMCG companies are integrating AI into merchandising, pricing, inventory management, demand forecasting and operational decision-making, enabling faster and more accurate responses to consumer demand. AI-assisted shopping and emerging agentic commerce are also beginning to influence how consumers discover products, compare alternatives and make purchase decisions.

The shift comes as India's retail landscape becomes increasingly connected, with traditional boundaries between physical stores, e-commerce and quick commerce continuing to blur.

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Consumers driving AI adoption

The report attributes the rapid adoption of AI to changing consumer behaviour. Today's Indian shoppers are increasingly digitally connected and expect convenience, speed, transparency and personalised experiences across channels. Product discovery is now being shaped by digital platforms, creator ecosystems and AI-powered recommendations, prompting businesses to rethink customer engagement strategies.

The study also notes that consumers are becoming more informed and health conscious. Around 74% review ingredient or nutritional information before making purchases, 63% choose products based on formulations and ingredients, and 52% switch brands for better health and transparency credentials.

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Beyond automation

Deloitte said AI adoption is also transforming business operations behind the scenes. Supply chains that were traditionally optimised for efficiency are being redesigned for resilience through intelligent planning, AI-enabled forecasting and diversified sourcing models as companies respond to demand volatility, geopolitical uncertainty and climate-related disruptions.

The report identifies AI as one of six structural trends reshaping India's consumer sector, alongside the rise of the new Indian consumer, resilient supply chains, the emergence of new commerce ecosystems, governance and sustainability, and the global expansion of Indian brands.

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