Navigating the Future: AI’s Impact on Quick Commerce and Emerging Tech Trends

✍️ Opinions

Muskaan Kapoor

Jan 17, 2024 — 5 min read

AI’s Impact on Quick Commerce and Emerging Tech Trends

This article has been contributed by Akshat Saxena, Chief Executive Officer and Co-Founder, Froker.

The commerce industry has always been at the forefront of adopting technological innovations to enhance customer experiences and operational efficiency. This ongoing evolution is reshaping the landscape of commerce through quick commerce, which is gradually revolutionizing shopping experiences. The Indian quick commerce sector presently boasts a market value of $700 million. It is on the cusp of substantial expansion, fueled by key technological trends. The integration of artificial intelligence (AI) and the emergence of social commerce are pivotal to this growth. They are not just changing the way businesses operate but also how a young, tech-savvy population interacts with the digital marketplace.

Quick commerce is making the user experience more seamless, personalized, and altered as per the online world. This evolution, driven by increased smartphone penetration and AI's transformative potential, is paving the way for a future where quick commerce is not just about quick transactions but about creating immersive, intuitive, and engaging consumer journeys. The government's role in fostering such innovation is crucial, as it can provide the necessary support and framework for these technologies to thrive, ensuring a sustainable and efficient ecosystem for startups.

Let’s look at some of the tech-driven trends that are transforming the quick commerce landscape.

Social Commerce Is the New Frontier in Customer Engagement
Personalization of Searches Through Generative AI
AI Assistants to Enhance Customer Support and Interaction
AI Content Moderation and Predictive Analytics
Tech-Enabled Supply Chain Optimization
The Emergence of Virtual Stores and AR Experiences

Social Commerce Is the New Frontier in Customer Engagement

Social commerce, the amalgamation of e-commerce with social media platforms, is revolutionizing the way consumers discover and purchase products. This trend is not just about selling through social media. It is about creating an entire shopping experience that is seamless, engaging, and personalized. Social commerce taps into the user's social network, preferences, and online behaviour to offer a curated shopping experience that's both intuitive and enjoyable.

Personalization of Searches Through Generative AI

Generative AI search is redefining how customers find products and services online. Unlike traditional search algorithms that rely on keyword matching, generative AI can easily understand and interpret user queries in a more human-like manner. This new-age technology can generate product recommendations and search results that are highly personalized as per the user's past behaviour, preferences, and even current trends. The result is a more intuitive search experience that helps users discover products that they are more likely to purchase.

AI Assistants to Enhance Customer Support and Interaction

AI assistants, or AI buddies, are becoming integral to the commerce industry. These AI-powered tools can handle a range of tasks, from answering customer queries to providing personalized shopping advice. Unlike traditional chatbots, these AI assistants are capable of learning and evolving based on customer interactions, making them more efficient and effective over time. They can handle a high volume of queries simultaneously, ensuring that customer support is swift and efficient.

AI Content Moderation and Predictive Analytics

AI-enabled content moderation is crucial in social commerce, where user-generated content plays a significant role. AI can quickly analyse vast amounts of data, flagging and removing inappropriate or harmful content, thus maintaining the integrity and safety of the platform. This technology is not only for protecting users but also for preserving the brand's reputation.

At the same time, AI is being used by startups for predictive analytics, which is used to forecast trends, consumer behaviour, and potential market shifts with remarkable accuracy. This foresight allows for more targeted and effective marketing strategies, ensuring that companies are always a step ahead. Going ahead, the use of AI for protected user experiences and targeted marketing efforts will gain stronger ground in the world of commerce.

Tech-Enabled Supply Chain Optimization

AI and other emerging technologies are rapidly transforming supply chains around the world, including in India. AI systems can analyze huge amounts of data to accurately forecast demand, automatically adjust inventory levels, and optimize delivery routes in real-time. This can contribute significantly to making their supply chains smarter and more efficient. According to a report by PwC, 54% of firms in India are now utilizing AI. With the ongoing technological adoption across industries, the use of tech-enabled supply chains will continue to expand.

Moreover, AI has the power to drive greater sustainability and introduce more ethical practices across quick commerce in India. AI-enabled systems can closely monitor production and distribution chains to detect areas for reducing waste, minimizing environmental impact, and addressing labour, safety, or diversity issues in operations.

The Emergence of Virtual Stores and AR Experiences

The online shopping landscape in India is rapidly evolving with the emergence of immersive technologies like augmented reality (AR) and virtual stores. E-commerce players are integrating AR tools to allow customers to visually try on products and even place items in their actual living spaces before buying. This technology not only boosts customer engagement but also helps reduce return rates by providing a clearer idea of the product before purchase.

Conclusion

The Indian quick commerce industry is poised to reach $5 billion in revenue by 2025, driven by the rapid adoption of advanced and futuristic technologies that are revolutionizing supply chain transparency, optimizing inventory, and elevating customer experiences. Here, government initiatives can enable a regulatory environment fostered through supportive digital infrastructure policies, public-private partnerships, and funding for emerging technology research.

With a tech-empowered consumer base eager for faster deliveries, India can harness innovation responsibly to meet growth targets and establish global AI leadership. By combining commercial interests with ethics and social welfare through government vision and oversight, India can witness resilient tech-enabled advancement in commerce.