Millennials Lead AI Shopping Adoption in India at 84%, Ahead of Gen Z: McKinsey

Indian millennials are emerging as the country’s leading adopters of artificial intelligence-powered shopping tools, with 84% using AI to discover products, compare alternatives and support purchasing decisions, according to a global consumer survey conducted by McKinsey & Company. The adoption rate among millennials exceeds the 74% recorded among Generation Z consumers, indicating that the integration of artificial intelligence into shopping activities extends beyond India’s youngest digital consumers.

The findings are part of McKinsey’s Agentic Commerce Consumer Survey, conducted in June 2026 and published on 28 October 2026. The research examined the shopping behaviour of approximately 21,000 consumers across 11 major markets, including India, China, the United States and the United Kingdom. India emerged as one of the world’s leading markets for AI-assisted shopping, with 76% of surveyed consumers reporting the use of artificial intelligence tools for shopping-related activities, compared with the global average of 53%.

India Ranks Second Globally in AI Shopping Adoption

India ranked second among the 11 markets surveyed for the adoption of artificial intelligence in shopping, trailing only China, where 80% of consumers reported using AI-powered tools. India’s adoption rate of 76% was considerably higher than the overall global average, highlighting the extent to which conversational AI platforms and intelligent shopping assistants have become part of consumer decision-making.

The research covered the use of standalone AI platforms and retailer-operated shopping assistants for activities ranging from product discovery and information gathering to comparing alternatives and making purchase decisions. These tools allow consumers to describe their requirements in natural language, receive product recommendations and evaluate competing options without relying exclusively on conventional search engines or individual retail websites.

India’s performance is particularly significant because it reflects the adoption of AI-assisted shopping across a large and diverse consumer market. However, the findings measure reported usage among survey respondents rather than the proportion of retail transactions completed through artificial intelligence. The distinction is important because using an AI assistant to research a product does not necessarily mean that the consumer completes the purchase through the same platform.

Millennials Lead Adoption Across Indian Generations

The survey identified millennials as the most active users of artificial intelligence for shopping in India, with an adoption rate of 84%. Generation Z and Generation X followed at 74% each, while 56% of baby boomers reported using AI-powered shopping tools. These findings suggest that the use of artificial intelligence for consumer activities is not confined to younger generations but extends across multiple age groups.

The 10-percentage-point difference between millennials and Generation Z is a notable feature of the Indian market. Although Generation Z is generally associated with early adoption of digital technologies, millennials recorded greater use of AI shopping tools in the survey. The findings demonstrate that familiarity with digital platforms does not necessarily translate into identical adoption patterns across different age groups.

India’s adoption figures also stand above broader international trends. Across the surveyed markets, 63% of millennials and 62% of Generation Z consumers reported using artificial intelligence for shopping, compared with the overall global average of 53%. This indicates that Indian consumers in these generations are adopting AI-assisted shopping at substantially higher rates than their global counterparts.

The survey also recorded meaningful adoption among older Indian consumers, although McKinsey cautioned that the 56% figure for baby boomers should be treated as indicative because it was based on fewer than 100 respondents. The relatively small sample limits the precision with which the findings can be generalised to the wider population in that age group.

Indian Consumers Record Highest Trust in AI Shopping Tools

Consumer confidence emerged as another distinguishing characteristic of India’s artificial intelligence shopping market. According to McKinsey, 87% of Indian AI users expressed trust in AI-powered chat and search tools, compared with the global average of 73%. India recorded the highest reported level of trust among the markets examined in the research.

The findings indicate that Indian consumers who already use artificial intelligence are comparatively comfortable relying on these systems for information and assistance. Such confidence may influence how frequently consumers consult AI platforms when evaluating products, comparing specifications or considering purchases, although the survey does not establish that trust necessarily leads to higher spending or completed transactions.

Internationally, younger consumers demonstrated a more cautious attitude towards artificial intelligence despite relatively high adoption rates. Only 67% of Generation Z AI users globally expressed trust in AI chat and search tools, below the overall average of 73%. This difference illustrates that frequent use of emerging technologies does not automatically correspond with greater confidence in their reliability.

For retailers and technology providers, consumer trust remains an important consideration as AI shopping systems become more capable. The accuracy of product information, transparency of recommendations, protection of personal information and reliability of purchasing processes are likely to influence whether consumers continue using these tools as part of their regular shopping activities.

AI Changes How Consumers Discover and Compare Products

McKinsey’s research identified a significant change in the influence of artificial intelligence during the shopping process. Among consumers already using AI, AI-powered search tools were 3.2 times more likely to be ranked as the most influential source in a recent purchasing decision than traditional search engines. They were also 2.6 times more likely to be ranked above recommendations from friends or family.

The findings suggest that AI platforms are increasingly functioning as intermediaries between consumers and retailers. Instead of examining numerous search results and visiting multiple product pages, shoppers can use conversational interfaces to explain their preferences, compare alternatives and obtain consolidated recommendations.

Convenience was a major factor influencing adoption. Among surveyed AI shoppers, 81% agreed that artificial intelligence helped them narrow down and filter available choices, while 80% valued the reduction in scrolling and clicking. Another 79% reported that AI tools helped them save considerable time during the shopping process.

These preferences are particularly relevant to online retail categories where consumers must compare large numbers of products, specifications and prices before purchasing. AI-powered assistance can simplify the evaluation process, although the usefulness of individual recommendations continues to depend on the accuracy, completeness and currency of the information available to the system.

Agentic Commerce Introduces New Possibilities for Online Retail

Beyond product discovery and comparison, the McKinsey study examined the emergence of agentic commerce, in which artificial intelligence systems can perform shopping-related tasks on behalf of consumers. These capabilities can range from identifying suitable products and preparing shopping baskets to assisting with checkout and completing purchases.

The research found that 14% of AI users globally had completed a purchase directly through an AI tool, equivalent to approximately 9% of the overall surveyed population. While this remains a smaller proportion than the number of consumers using AI for product research, it indicates that artificial intelligence is beginning to influence the transaction stage of online shopping as well as the initial discovery process.

Consumer interest in automated purchasing was higher than current transaction levels. Across six leading product categories, between 21% and 30% of AI users indicated that they would be willing to allow artificial intelligence to complete purchases on their behalf. The difference between expressed willingness and actual use suggests opportunities for retailers to develop more integrated shopping experiences, provided they can address concerns involving transaction security, payment authorisation and consumer control.

McKinsey also observed that retailer-operated AI assistants become more competitive with standalone artificial intelligence platforms as consumers approach checkout. This reflects the advantages retailers possess through their existing access to product inventories, payment infrastructure, delivery networks and order-management systems.

Implications for India’s Expanding Digital Commerce Ecosystem

India’s high adoption of AI-assisted shopping presents potential opportunities for e-commerce platforms, consumer brands, technology startups and digital service providers. As more consumers rely on conversational systems to evaluate products, retailers may need to improve the accessibility, consistency and accuracy of product information across digital platforms.

The growing influence of AI-powered recommendations could also change how businesses approach online visibility and customer engagement. Product descriptions, technical specifications, pricing information, inventory availability and customer-support systems may become increasingly important in determining how effectively artificial intelligence platforms can identify and recommend suitable products.

For Indian startups developing retail technologies, artificial intelligence presents opportunities in personalised product discovery, multilingual customer assistance, intelligent search and automated transaction support. These applications may be particularly relevant in a consumer market characterised by linguistic diversity, extensive product categories and varying levels of digital familiarity.

However, the widespread adoption of AI shopping tools also creates challenges involving consumer privacy, recommendation accuracy, misleading product information and the transparency of automated commercial decisions. Addressing these issues will be important for maintaining consumer confidence as increasingly sophisticated AI systems become integrated into retail transactions.

India Emerges as a Major Market for AI-Enabled Consumer Services

The McKinsey findings indicate that artificial intelligence is becoming an established component of shopping behaviour among surveyed Indian consumers, with adoption extending across generations and confidence in AI-powered tools exceeding international averages.

The particularly strong participation of millennials demonstrates that AI-assisted shopping is not exclusively driven by the youngest consumers. Instead, its appeal appears to extend to multiple generations seeking more efficient methods of discovering products, comparing alternatives and making informed purchasing decisions.

At the same time, the distinction between AI-assisted research and AI-executed transactions remains important. While a substantial proportion of consumers are already comfortable using artificial intelligence during the shopping process, fully automated purchasing is still at an earlier stage of adoption.

India’s second-place position in the international survey, combined with its comparatively high levels of consumer trust, highlights the country’s significance in the development of AI-enabled retail services. As retailers and technology companies expand their capabilities, the next phase of adoption will depend on their ability to convert consumer interest into reliable, transparent and secure shopping experiences.

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