Conversational commerce revolution: Gen AI fuels business growth in India

The way businesses interact with customers is undergoing a dramatic shift, driven by the rise of conversational platforms and the transformative power of generative AI (Gen AI). A new report, "Win with Conversations," by Bain & Company and Meta, reveals that conversational commerce is poised to be the next big wave of business growth in India.

The report, based on extensive research with consumers and businesses, paints a clear picture of the emerging landscape: 70% of large enterprises are already engaging with half of their customer base through conversational platforms like WhatsApp. Consumers, too, are embracing this shift, with over 50% preferring conversational journeys for everyday tasks like paying bills, booking travel, and accessing bank statements. This growing preference is reflected in the business world: 60% of large enterprises are planning to increase their spending on conversational platforms over the next 3-4 years.

Gen AI is accelerating this shift. Over 80% of enterprises are planning to invest in Gen AI solutions within the next 1-2 years, recognising its potential to personalise customer experiences, automate tasks, and create more engaging interactions.

The report emphasises the immense potential of conversational commerce for businesses of all sizes. While large enterprises are leading the charge, the study reveals a strong appetite for conversational platforms among consumers who are eager to engage with small and medium businesses (SMBs). A staggering 90% of non-savvy digital users prefer to interact with local shops, restaurants, and service providers through conversational platforms.

This presents a unique opportunity for SMBs to leverage conversational commerce to overcome traditional challenges like discoverability, order management, and customer engagement.

Sandhya Devanathan, Head and VP, Meta in India, highlighted the company's commitment to supporting businesses in this evolving landscape. "We are investing in tools and solutions to help businesses connect with their target audience, deliver engaging experiences, and drive customer engagement and ROI," she said. "Gen AI will play a pivotal role in this vision, particularly for small businesses in India, who can leverage its vast potential."

Arpan Sheth, Partner, Bain & Company, emphasised the strategic importance of conversational commerce for businesses. "Businesses are increasingly experimenting with conversational commerce to redefine customer interactions and gain a competitive advantage," he said. "We expect to see a significant shift towards Gen AI-powered conversational platforms as businesses look to enhance end-to-end customer journeys."

The report's key takeaway is that conversational commerce is no longer a trend, but a new reality. Businesses that embrace this shift, leveraging Gen AI to personalise experiences, automate tasks, and create engaging interactions, will be positioned to thrive.