Beware: Amazon, Flipkart festive sale scams could get smarter with AI shopping tools; All you need to know

As India prepares for its upcoming festive shopping season, Amazon and Flipkart are getting ready for big sales. However, shoppers need to be careful when using AI to find deals. Banks are warning about risks related to AI-driven online shopping, including scams, fraud, and data privacy issues, according to a Reuters report cited by Moneycontrol.

Amazon's Great Indian Festival and Flipkart's Big Billion Days are two major sales periods when consumers typically compare deals on smartphones, laptops, TVs, appliances, fashion, and more. As AI tools become more common for finding products and comparing options, questions are arising about how these systems will work for shoppers.

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Why banks are concerned about AI shopping

Banks are concerned because festive sales often feature product discounts along with bank promotions, exchange offers, and no-cost EMI plans. This means the final price can depend on various conditions, not just the initial discount, so shoppers should check offers carefully before buying.

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According to Reuters, banks like NatWest, Bank of America, ING, ASB Bank, Capital One, and Commonwealth Bank of Australia have noticed increased interest in AI shopping agents. However, they also point out that this technology is developing faster than industry standards and consumer protections.

What you should keep in mind

AI shopping assistants are designed to help search for products, compare options, and even complete purchases. Companies like OpenAI, Anthropic, Google, and Meta are promoting these AI tools. 

Consumers should remember that it’s unclear whether AI agents will always have their best interests at heart. With many listings and promotional offers available during the festive sales, the growing use of AI in shopping adds complexity to online purchasing.