How India’s e commerce companies are quietly getting smarter with AI tools from Microsoft


India’s sprawling e-commerce sector, long fuelled by clicks and cart values, is undergoing a silent but fundamental transformation. In 2025, the competitive edge is no longer about delivery speed or discount depth; it’s about intelligence. AI is emerging as the behind-the-scenes enabler of a more responsive, efficient, and personalised shopping experience across the country.

Facing the challenge of scale, e-commerce platforms are turning to artificial intelligence to manage complexity across hundreds of millions of users with diverse languages, behaviours, and expectations. And leading the backend charge is Microsoft, not with flashy consumer-facing innovations, but by embedding AI into the very infrastructure of retail tech stacks.

At beauty and fashion giant Nykaa, GitHub Copilot is being used to speed up software development by automating repetitive coding and documentation, leading to a 20% boost in developer efficiency. This translates into faster product rollouts and higher-quality features.

Meesho, meanwhile, has integrated Azure OpenAI into its contact centre operations, especially during high-volume sales events. The result: a 20% rise in customer effort scores, quicker complaint resolutions, and a 5% uptick in the discovery of long-tail products, items that often get lost in the sea of fast-moving goods.

For hyperlocal platform Magicpin, the use of real-time AI models is proving transformative. A voice-driven bot now talks directly to delivery riders via phone, enabling proactive rerouting during disruptions. The same technology powers a chatbot that handles 60% of customer queries without human intervention, helping slash order cancellations and improve customer satisfaction.

Myntra is using AI in a more style-savvy way through MyFashionGPT, a conversational assistant that allows shoppers to browse with natural language instead of filters. Grocery delivery app Blinkit has taken a more culinary route, linking recipe prompts to live inventory, improving both click-through rates and basket size during busy periods.

Language inclusivity is also getting a lift, as platforms explore Microsoft’s translation tools to expand content creation into regional languages, helping them reach users beyond the traditional Hindi and English-speaking markets.

These enhancements may not always be visible, but they’re dramatically reshaping the user experience. For consumers, this isn’t about dazzling new features. It’s about smoother browsing, quicker support, smarter search results, and a digital environment that simply feels more intuitive.


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