Indian Consumers Embrace AI-Driven Interactions, But Indian Brands Lag Behind: Adobe Study

The Indian consumer market is rapidly evolving, with a growing preference for AI-driven interactions. A recent study by Adobe highlights that Indian consumers are leading the global trend in embracing AI-enabled tools and services, with 57% of them choosing AI over human interaction. This is significantly higher than the global and APAC averages, indicating a strong inclination towards technology-driven solutions.

Despite this preference for AI, human interaction still holds value in certain aspects of decision-making, customer support, and returns or cancellations. The study reveals that 39% of users prefer having both options available, especially when exploring new products and services.

On the other hand, Indian brands seem to be lagging behind in harnessing the latest AI innovations. Only 15% of Indian brands are leveraging generative AI to enhance customer experience initiatives, compared to 18% globally. Brands in Europe and the US are also ahead in terms of dedicated AI budgets and internal usage policies.

However, there is a silver lining as 41% of Indian brands are now prioritizing customer experience as a business priority, with 87% focusing on enhancing CX over other business goals. This shift in focus is driving Indian brands to accelerate the adoption and integration of generative AI into their operations.

Looking ahead, 53% of Indian brands are committed to improving their generative AI capabilities in the next 12 months, with 76% already piloting AI solutions to enhance customer experience delivery. Additionally, Indian brands are leading the world in customer data management, with a strong emphasis on balancing personalization and privacy.

Despite their data capabilities, Indian brands are facing challenges in adopting technologies that support personalization. Data privacy and security concerns are key barriers, with 59% of Indian consumers willing to stop or reconsider buying from brands that are not transparent about their data use.

Consumer concerns also extend to the responsible and ethical usage of personal data, with a majority believing that brands may misuse their data without consent or fail to build ethical AI tools. This highlights the importance of transparency and ethical practices in AI-driven interactions.

In conclusion, the study underscores the need for Indian brands to embrace generative AI for personalized customer experiences while addressing consumer concerns around data privacy and ethical usage. By adopting responsible AI practices, brands can build trust and loyalty among Indian consumers, leading to long-term success in the evolving digital landscape.