The Shift to 'Agentic AI' in Commerce
The emerging Agentic AI sector, projected to reach $50 billion by 2030, is enabling a shift from passive content to interactive, shoppable experiences. Uday Bhaskar, founder of Cliperact, explained in a podcast that the technology allows for clickable video that converts viewers to buyers within the content itself. He described the future of commerce as AI-driven flows that contextually nudge, convert, and upsell rather than just providing simple chatbot replies.
- Agentic AI can reclaim up to 40% of a retail merchant's time by automating manual, repetitive tasks. This allows merchants to focus on strategic activities like product discovery, understanding customer behavior, and negotiating with vendors. - The Indian conversational commerce market is projected to grow at a compound annual growth rate (CAGR) of 17.8% between 2025 and 2035. This growth is largely driven by the adoption of multilingual AI chatbots that allow businesses to reach a more diverse customer base. - For small and medium-sized businesses in India, WhatsApp has become a critical channel, with 80% considering it essential for scaling operations. The platform's high engagement rates, including message open rates of approximately 98%, are a key factor in its effectiveness. - In India's non-metro areas, 90% of consumers use WhatsApp as their primary platform for commerce and brand discovery. For these consumers, UPI is the default payment method for 67% of transactions in Tier-II and Tier-III cities. - The direct-to-consumer (D2C) market in India is expected to become a $100 billion opportunity by 2025. This growth is not limited to metropolitan areas, as D2C brands are seeing increased traction in Tier II and III cities. - A pilot program in India is integrating AI chatbots like ChatGPT with the UPI payment system, allowing shoppers to make purchases directly through the AI interface. This initiative involves major players like the National Payments Corporation of India (NPCI), OpenAI, and fintech firm Razorpay. - By 2029, it is predicted that 25% of all online consumer purchases will be initiated by AI shopping agents. Furthermore, 48% of retailers plan to deploy agentic AI in 2026. - For hyperlocal businesses, which focus on delivering goods within a small geographic area, seamless UPI integration is crucial for reducing friction at checkout and improving payment success rates. Platforms like Porter and Shiprocket Quick are key enablers for small and medium enterprises in this space.
