India Pilots AI Chatbot-Led E-Commerce with ChatGPT, Gemini, and Claude
India has initiated a nationwide pilot that enables consumers to shop and complete payments directly through AI chatbots. Spearheaded by OpenAI’s ChatGPT, the rollout includes upcoming integrations with Google’s Gemini and Anthropic’s Claude, positioning India as a pivotal market for global AI enterprises.
NPCI’s Role and Underlying Technology
The National Payments Corporation of India (NPCI), which operates the country’s Unified Payments Interface (UPI), has collaborated with OpenAI and fintech firm Razorpay to enable this AI-driven commerce experience. Razorpay confirmed the pilot’s nationwide rollout, with broader availability expected in the coming months. The solution leverages NPCI’s UPI Reserve Pay, a protocol allowing users to earmark funds for future payments, and UPI Circle, which facilitates in-chatbot payment authentication. Razorpay developed the merchant integration layer, enabling seamless transactions within AI chatbots without redirecting users to external apps or websites.
Initial Merchant and Banking Partners
The pilot’s first merchant collaborators include Tata Group’s online grocer BigBasket and telecom operator Vi, allowing customers to purchase groceries and recharge mobile plans directly via ChatGPT. Banking infrastructure is supported by Axis Bank and Airtel Payments Bank.
Market Context and Strategic Significance
India, with over a billion internet users, ranks among OpenAI’s largest markets for ChatGPT. In August, OpenAI introduced an affordable ChatGPT Go subscription to broaden its user base. This pilot aligns with OpenAI’s strategy to deepen engagement and capitalize on India’s expanding digital economy.
“It’s not just a payment experience, it’s a whole new discovery and commerce experience,” said Harshil Mathur, Razorpay’s co-founder and CEO.
UPI already facilitates over 20 billion monthly transactions, dominating India’s digital payments landscape. Embedding AI chatbots into this ecosystem could accelerate UPI’s adoption by transforming shopping interfaces.
Expansion Plans and Upcoming Integrations
Razorpay has completed proofs-of-concept integrating Google’s Gemini and Anthropic’s Claude AI chatbots, with consumer access expected within weeks. The company is also in discussions with additional merchants, aiming for a wider rollout soon. Both Google and Anthropic are aggressively expanding in India, leveraging the country’s vast user base. Google’s existing local presence through Android and YouTube complements its AI ambitions, while OpenAI and Anthropic are localizing AI offerings to meet Indian consumers’ needs.
Data Privacy and Security Measures
The pilot does not include revenue-sharing arrangements among partners. Crucially, AI companies will not access payment data, with transactions secured by two-factor authentication and user pre-authorization through chatbots.
Industry Perspectives on Agentic Payments
OpenAI recently launched an “Instant Checkout” and Agentic Commerce Protocol in partnership with Stripe, enabling merchants to connect with consumers via AI agents. Similarly, Google introduced its Agent Payments Protocol to facilitate AI-driven transactions.
“This is still an early, forward-looking concept, but one with tremendous potential. Its adoption will naturally grow in line with how fast shopping agents take off,” said Reeju Datta, co-founder of Cashfree Payments.
Cashfree Payments has also launched its Agentic Payments MCP, supporting major payment methods including cards and UPI. However, merchants must develop their own shopping agents to integrate with this platform. While Cashfree has not disclosed its initial merchant partners, it is exploring collaborations with large enterprises across e-commerce and lending sectors.
FinOracleAI — Market View
India’s AI chatbot-enabled commerce pilot represents a significant innovation in digital payments and e-commerce. By integrating AI agents directly with UPI’s robust infrastructure, this initiative could redefine consumer shopping experiences and accelerate digital transaction volumes.
- Opportunities: Enhanced user engagement via conversational commerce; expanded digital payment adoption; new revenue streams for merchants; strengthened AI ecosystem presence in India.
- Risks: Consumer adoption hurdles; privacy and data security concerns; merchant integration challenges; regulatory scrutiny on AI-driven financial services.
Impact: This pilot has a positive market impact potential, fostering innovation and deeper integration of AI within India’s vast digital economy, contingent on successful user adoption and regulatory compliance.
