81% of Indian consumers expect brands to adopt gen AI by 2024-end, the highest in APAC

Indian marketers are leading the Asia-Pacific (APAC) region in embracing generative AI (gen AI) technologies. But a new study by Adobe reveals that consumer expectations may still be outpacing brand efforts.

Titled the State of AI-driven Consumer Value report, the research surveyed 402 marketers and 2,000 consumers in India between February and May 2024 to evaluate the role of gen AI in shaping brand interactions. The findings offer crucial insights for the advertising and marketing sectors grappling with a rapidly evolving digital landscape.

With 66% of Indian brands already utilising gen AI and an additional 26% experimenting with it, adoption levels are higher than in Australia (44%) and Japan (22%). The urgency is palpable: 70% of Indian marketers view embedding gen AI into customer experiences as an immediate priority.

This urgency aligns with consumer expectations, as 81% of Indian respondents anticipate brands adopting gen AI by the end of 2024, the highest percentage in the region.

“Gen AI is transforming consumer expectations at an unprecedented pace, particularly in India, where demand for hyper-personalised and unified brand experiences is unmatched,” said Anindita Veluri, director of marketing at Adobe India. She added that while Indian brands are frontrunners in adopting this technology, they must also prioritise transparency, ethics, and responsible usage to meet consumer aspirations effectively.

Responsible AI implementation is key

Despite the enthusiasm for gen AI, the report underscores the importance of responsible implementation. A striking 95% of consumers and 98% of marketers agree that transparency around AI usage and data sources is paramount.

Privacy (61%) and clarity on data usage (46%) also rank high among consumer concerns. Moreover, a majority expect brands to have a clear stance on ethics and bias, highlighting the need for more than just technological adoption.

Adding to these challenges, over half (53%) of Indian consumers believe gen AI efficiencies should translate into more affordable products and services. This sentiment significantly outpaces similar expectations in Australia (35%) and Japan (36%). Marketers must balance delivering innovative AI-driven experiences with maintaining affordability to remain competitive in a price-sensitive market like India.

Alignment between brands and consumers

One encouraging finding in the Adobe survey is the alignment between marketers and consumers on the perceived value of gen AI. While 94% of marketers believe their AI initiatives are delivering value, 88% of consumers agree.

A majority (90%) of respondents have reported improved online shopping experiences through features like personalisation, convenience, and enhanced customer support. Consumers are particularly excited about future applications of gen AI.

For ecommerce, features such as designing custom products, suggesting event ideas, and summarising service reviews rank highly on wish lists. A significant 91% of Indian consumers expressed interest in AI-generated visuals showing them wearing products, reflecting a desire for hyper-personalised shopping experiences.

Travel and beyond: New horizons for gen AI

Travel is another sector where Indian consumers anticipate gen AI making a significant impact. The most appealing use case is generating price comparisons, followed by personalised travel options, itinerary recommendations, and nearby amenity suggestions. These features could simplify planning and enhance overall travel experiences, underlining the technology’s potential beyond retail.

However, excitement about possibilities comes with expectations for ethical AI use. Veluri noted that brands must unlock gen AI’s potential while maintaining accountability, a challenge that will test both technological and organisational capabilities.

While gen AI adoption is surging, marketers face a dual challenge: implementing the technology responsibly while keeping up with consumer demands. The need for transparency and ethical practices adds complexity to execution strategies, especially in a market as dynamic as India.

Marketers must also invest in robust AI governance frameworks, ensuring compliance with data privacy laws and addressing ethical concerns. These measures require significant resource allocation, posing potential hurdles for smaller agencies and businesses with limited budgets. The industry will likely see an increased focus on consumer education, ethical AI practices, and advocacy to bridge the trust gap.

Adobe’s research is a wake-up call for India’s advertising and marketing industry. The rapid adoption of gen AI indicates a tech-savvy market ready to embrace innovation.

However, the findings also highlight the pitfalls of rushing into AI adoption without addressing consumer concerns about transparency, ethics, and affordability. For agencies and brands, the path forward involves balancing innovation with responsibility—a task easier said than done.

By focusing on these areas, Indian marketers have an opportunity to set global benchmarks in AI-driven consumer experiences. As consumers grow more informed and demanding, the onus is on brands to rise to the occasion. Gen AI may offer powerful tools, but its success ultimately hinges on fostering trust and delivering meaningful, transparent value.

As Indian brands chart their AI journeys, they are not just navigating uncharted waters but also setting the course for the future of consumer-brand interactions. While the technology offers immense potential to redefine experiences across industries, marketers must remain mindful of the risks and responsibilities it brings.

The industry’s ability to address these challenges will determine whether gen AI becomes a genuine asset or a missed opportunity in a competitive landscape. For now, one thing is clear: the race to meet consumer expectations is on, and the stakes are higher than ever.