Paper Contents
Abstract
The integration of Artificial Intelligence (AI) has profoundly disrupted the retail textile sector in India, reshaping supply chains, consumer experiences, and business models. Traditionally dominated by fragmented networks of manufacturers, wholesalers, and small retailers, the sector is undergoing rapid digital transformation driven by AI-enabled platforms. Predictive analytics now optimize inventory management, minimizing overstock and shortages by aligning production with real-time demand. Computer vision technologies support automated quality control, reducing defects and ensuring compliance with global standards. At the consumer interface, AI-powered recommendation engines personalize shopping experiences on e-commerce and omnichannel platforms, boosting conversion rates while strengthening customer loyalty. Further disruption arises from the adoption of conversational AI, including chatbots and virtual assistants, which provide 247 customer support and facilitate seamless order tracking. In-store AI solutions, such as smart mirrors and augmented reality applications, redefine experiential retailing by allowing customers to visualize products before purchase. On the supply-chain side, machine learning algorithms enable dynamic pricing, fraud detection, and route optimization for logistics. These developments have particularly benefited organized retail players, but small and medium textile enterprises are also leveraging AI-driven SaaS platforms to scale operations and access broader markets. However, AI adoption presents challenges. High implementation costs, digital skill gaps, and concerns around data privacy hinder uniform penetration across Indias heterogeneous textile sector. The reliance on algorithmic decision-making also raises concerns about transparency, bias, and job displacement in traditional retail roles. Despite these obstacles, the trajectory indicates that AI will remain a catalyst for structural change, fostering efficiency, innovation, and global competitiveness. This paper critically analyzes the extent and modes of AI disruption in Indias retail textile sector, focusing on operational efficiencies, consumer engagement, and strategic implications for stakeholders. It argues that while AI adoption deepens divides between organized and unorganized players, it simultaneously provides new opportunities for inclusive growth if complemented by policy support, skill development, and responsible AI governance.
Copyright
Copyright © 2025 Aradhya Gupta. This is an open access article distributed under the Creative Commons Attribution License.
