The Rise of Agentic Commerce: How AI is Poised to Reshape Shopping
The future of shopping isn’t about browsing; it’s about having an intelligent agent proactively assist you. What we have is the core idea behind “agentic commerce,” a concept gaining traction thanks to advancements in artificial intelligence. InMobi CEO Naveen Tewari recently outlined a vision where AI doesn’t just sit on top of shopping platforms, but is built directly into the rails of trade, fundamentally shifting economic growth.
From Personalized to *Personal* Feeds
For years, retailers have focused on personalized experiences – showing you products based on your past purchases and browsing history. Agentic commerce takes this a step further, creating personal feeds that adapt in real-time to your current needs and sensitivities. Tewari explained this means understanding not just what you like, but your price sensitivity and brand preferences in the moment.
This shift is powered by what Tewari calls a “living commerce context graph,” a sophisticated system that understands a person’s context and seeks the most efficient buying pathway. This isn’t just about finding the lowest price; it’s about optimizing the entire purchase journey, evaluating potentially billions of options.
Transparency and Accountability: The Key to Trust
Even as the potential economic impact – estimated at a $3 trillion opportunity for India by 2047 – is significant, Tewari stressed the importance of transparency and accountability. He cautioned that digital platforms have, at times, created distortion and manipulated attention, and agentic systems must avoid these pitfalls. Authenticity is paramount.
“If you bring AI intelligence into commerce, you fundamentally shift economic growth. But this must be authentic,” Tewari stated at the India AI Impact Summit. This focus on responsible AI aligns with a broader push for ethical considerations in the development and deployment of AI technologies.
Glance and InMobi: Building the Agentic Commerce Infrastructure
InMobi, through its consumer business Glance, is actively building the infrastructure for this agentic future. The company is investing heavily in AI, including a $200 million investment in Glance AI and a generative AI ad tech stack. Glance is creating deep-tech, three-layered AI models to power this new era of commerce.
Glance’s investors include Google, Jio Platforms, and Mithril Capital, reflecting the growing interest in this space. The company has already raised $390 million at a $1.7 billion valuation.
The Shift to Proprietary AI Models
A key trend Tewari highlighted is the move towards proprietary AI models trained on exclusive data. This suggests that companies with access to unique datasets will have a significant advantage in developing and deploying effective agentic commerce solutions. This is a shift away from relying solely on open-source AI, as India pushes for homegrown AI development.
Did you know? The power in AI is increasingly concentrated in the hands of companies building their own models with exclusive data.
Impact Beyond Shopping: Supply Chains and Manufacturers
The implications of agentic commerce extend beyond the consumer experience. Tewari noted that it will impact buying behavior, supply chains, and manufacturers. By understanding consumer needs in real-time, businesses can optimize their operations and respond more effectively to market demands.
FAQ: Agentic Commerce Explained
What is agentic commerce? It’s a system where AI proactively assists consumers in their purchasing decisions, going beyond simple recommendations to actively represent their interests.
What is a “living commerce context graph”? It’s an AI-powered system that understands a person’s current context, needs, and price sensitivity to optimize their buying journey.
Why is transparency key in agentic commerce? To build trust and avoid the pitfalls of manipulation and distortion that have plagued some digital platforms.
What is the potential economic impact of agentic commerce? It’s estimated to generate a $3 trillion impact in India over the next two decades.
Pro Tip: Keep an eye on companies investing heavily in AI and data infrastructure – they are likely to be at the forefront of the agentic commerce revolution.
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