Indian consumers are increasingly turning to artificial intelligence driven recommendations when making purchase and content decisions, according to a new report released by LS Digital. The findings indicate that 82 percent of Indian consumers now prefer AI powered recommendations, signalling a shift in how brands influence engagement and decision making across digital platforms. The report also highlights a significant rise in vernacular interactions, with AI led regional language experiences driving a 40 percent increase in engagement.
The report reflects changing consumer expectations in a market that has rapidly embraced digital services across commerce, entertainment, financial services and education. As consumers encounter a growing volume of content and choices online, AI based recommendation systems are emerging as a trusted filter. LS Digital noted that consumers increasingly expect platforms to understand their preferences and deliver relevant suggestions in real time, rather than relying on manual search or exploration.
One of the key findings from the report is the growing impact of vernacular content powered by AI. As digital adoption deepens beyond metro cities, regional language interfaces are becoming central to consumer engagement strategies. AI systems that can interpret user behaviour and deliver recommendations in local languages are seeing stronger response rates. LS Digital said that vernacular engagement powered by AI is not only increasing reach but also improving depth of interaction, particularly among users in tier two and tier three markets.
The report points to a broader transformation in how Indian consumers interact with brands. AI driven personalisation is no longer limited to product recommendations. It now extends to content discovery, customer support, financial advice and entertainment choices. Consumers appear more comfortable relying on AI systems that can predict needs and preferences, especially when those systems demonstrate accuracy and cultural relevance.
According to LS Digital, trust plays a critical role in the adoption of AI recommendations. Consumers are more likely to engage with AI driven suggestions when they feel the outcomes are helpful rather than intrusive. Transparency, relevance and consistency were identified as key factors influencing trust. Brands that use AI to enhance user experience rather than aggressively push sales messages tend to see stronger engagement and retention.
The report also highlights how marketers are rethinking personalisation strategies in response to these trends. Traditional segmentation based on demographics is giving way to behaviour led models powered by machine learning. AI systems analyse browsing patterns, content consumption and transaction history to deliver tailored recommendations at scale. This approach allows brands to respond dynamically to consumer intent rather than relying on static campaigns.
Vernacular AI engagement is emerging as a particularly powerful lever for growth. India’s linguistic diversity presents both a challenge and an opportunity for marketers. LS Digital’s findings suggest that AI powered language models are helping brands bridge this gap by enabling scalable localisation. Consumers engaging in their preferred language tend to spend more time on platforms and interact more frequently with recommended content.
The report notes that sectors such as ecommerce, media, fintech and edtech are among the fastest adopters of AI recommendation systems. In ecommerce, AI driven suggestions influence product discovery and repeat purchases. In media and entertainment, recommendation engines shape viewing and listening habits. Financial services platforms are using AI to guide users toward relevant products and services, while edtech platforms rely on AI to personalise learning paths.
LS Digital also observed that younger consumers are particularly receptive to AI recommendations, though adoption is rising across age groups. Familiarity with digital platforms and comfort with automation appear to influence acceptance. However, the growing preference for AI recommendations suggests that trust in these systems is expanding beyond early adopters.
For marketers, the findings reinforce the importance of investing in data infrastructure and AI capabilities. Effective recommendation systems depend on high quality data and continuous learning. LS Digital said that brands need to focus on responsible data practices and ensure that AI outputs align with consumer expectations and regulatory requirements.
The report also cautions that overreliance on automation without human oversight can undermine trust. While AI excels at pattern recognition and scale, contextual judgement remains important. Brands that balance automation with thoughtful design and governance are better positioned to sustain long term engagement.
As AI becomes more embedded in consumer experiences, the line between technology and everyday decision making continues to blur. LS Digital’s findings suggest that Indian consumers are increasingly open to AI guided interactions, provided they deliver value and respect user preferences. The strong performance of vernacular AI experiences highlights the need for culturally aware personalisation strategies.
Looking ahead, LS Digital expects AI driven recommendation systems to play an even larger role in shaping digital engagement in India. As language models improve and data ecosystems mature, brands will have greater opportunities to connect with consumers in meaningful ways. The challenge will be to use these tools responsibly while maintaining transparency and trust.
The report concludes that AI powered personalisation is no longer a competitive advantage but a baseline expectation for digital brands operating in India. With a majority of consumers expressing preference for AI recommendations, the focus for marketers is shifting from whether to adopt AI to how effectively it can be integrated into user experiences across languages and platforms.
