This work is licensed under a Creative Commons Attribution 4.0 International License .
Leveraging Agentic AI for Hyper-Personalized Experiences: Empirical Evidence from Indian Retail Sector
1T. Chaitanya Lakshmi, 2N.A. Francis Xavi, 1M.V. Madhavi
1Independent Researcher, Vijayawada, India 2Dean of Commerce and Business Administration, Department of Commerce, Andhra Loyola College, Vijayawada, India
Abstract
This study investigates the impact of agentic AI-driven hyper-personalization on customer retention in the Indian retail sector, particularly within organic retail markets in the Vijayawada-Guntur region. Using a descriptive-correlational research design, data were collected from 500 consumers through structured questionnaires and analyzed using ANOVA and regression techniques. The findings reveal that AI-enabled personalized recommendations and dynamic engagement strategies significantly improve customer loyalty, resulting in a 28% increase in retention levels. Regression analysis confirmed a strong positive relationship between personalization and customer retention (β = 0.42, p < 0.001), while ANOVA results indicated significant demographic differences, with millennials showing the highest responsiveness to AI-driven experiences. The study also highlights ethical concerns related to data privacy and algorithmic bias, emphasizing the need for transparent and responsible AI implementation. The research contributes to understanding the role of agentic AI in enhancing customer engagement and provides practical recommendations for sustainable AI adoption in emerging retail markets.
Keywords: AI Personalization, Customer Retention, E-Commerce India, Agentic AI, Organic Retail.
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