Conversational commerce goes mainstream as brands tap WhatsApp, Instagram and AI for sales

In a sign of how retail is evolving, WhatsApp, Instagram and AI-powered chatbots are rapidly becoming mainstream shopping channels. Brands across categories are reporting higher conversions through conversational interfaces, as consumers increasingly prefer real-time, chat-based interactions over traditional e-commerce browsing.

Industry experts say this surge underscores the rise of conversational commerce - a blend of messaging and shopping that lets users discover, engage, and purchase products within chat apps. From automated recommendations to instant checkout links, AI chatbots now replicate the in-store experience digitally, guiding users through personalized journeys and completing transactions inside a single chat window.

Also read: How AI is turning shopping into a single automated decision

India is fast emerging as a key growth hub for conversational commerce, backed by rapid adoption of AI and messaging-led shopping experiences. According to Future Market Insights, the Indian conversational commerce market is projected to grow at a robust CAGR of 17.8% between 2025 and 2035, driven by the rising use of multilingual AI chatbots that enable businesses to reach consumers across diverse linguistic backgrounds.

Similarly, data from Grand View Research shows that the Indian conversational AI market, valued at USD 361.3 million in 2023, is expected to surge to USD 1.85 billion by 2030, expanding at a CAGR of 26.2%. The report notes that solutions accounted for the largest revenue share in 2023, while managed services are poised to witness the fastest growth over the forecast period.

Kedar Kulkarni, SVP – Growth and Strategy at Puretech Digital said, “In India alone, WhatsApp has over 853 million users, making it a critical touchpoint for customer engagement. Instagram has also achieved a significant milestone, reaching 3 billion monthly active users globally. AI chatbots are now handling a substantial portion of customer queries, enhancing efficiency and customer satisfaction.”

This was further reiterated by an industry veteran who said that conversational commerce has really taken off, primarily because people now spend so much of their time on chat platforms. For most users in India, WhatsApp has essentially become the primary social platform. 

“The other trend is that many e-commerce platforms now have seamless commerce integration within chats. You can get a catalog or payment link and complete the transaction instantly. This is largely driven by better personalization technology - brands know your buying history and can offer highly relevant products,” he said, adding that all the major players, including Meta, Apple, Google, Shopify, are investing in it heavily.

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Shashi Bhushan, Chairman of the Board at Stellar Innovations further explained why these platforms are increasingly becoming a sales point. According to him, such platforms foster personalized, real-time dialogues that lead to engagement and transaction. JioMart and several small businesses in India have reportedly used WhatsApp chatbots with success to increase both conveniences without compromise as well as their sales. 

Bhushan also highlighted the ease & convenience factor. “The convenience and ubiquity with which these platforms enter consumers' lives also makes them increasingly popular for shopping and customer support, driving conversational commerce into the mainstream retail handbook,” he said. 

According to experts, early adopters of conversational commerce in India include e-commerce, FMCG, fashion and lifestyle, electronics, hospitality and financial services. These categories are leading the shift as their purchase journeys rely heavily on queries, personalized recommendations, and real-time assistance. Essentially, sectors where trust, guidance, and instant responses play a crucial role in customer decision-making are witnessing the fastest adoption of conversational commerce.

“Conversational commerce has rapidly become a core pillar of our digital retail and customer engagement strategy. Platforms like WhatsApp and Instagram, where boAt has millions of engaged followers are now central to how we initiate, nurture, and convert customer interactions in real time,” said a boAt spokesperson. 

Also read: Why ‘experience’ is emerging as the new media for D2C brands

boAt now sees conversational commerce as a strategic priority alongside its core e-commerce platform. With WhatsApp adoption in India projected to hit 650 million users by 2025, and given its higher conversions and lower acquisition costs, the brand has ramped up investments in messaging storefronts. It is scaling conversational tools, strengthening analytics, and crafting personalized chat-based campaigns to meet consumers where they naturally connect and shop - inside their chats and DMs.

The broader industry trend backs this up. As adoption of conversational platforms accelerates across both large enterprises and small businesses, generative AI is redefining how brands interact with consumers. According to Win with Conversations, a joint report by Meta and Bain & Company, 70% of large enterprises already engage with at least half of their customers via conversational platforms, and 60% plan to increase investments in this space over the next three to four years. 

The study also found a growing consumer appetite for conversational interactions with SMBs — with 90% of digital users preferring to engage with local businesses through chat-based platforms for daily needs. This shift is expected to empower India’s SMB ecosystem by addressing challenges like discoverability, order management, payments, and customer engagement, paving the way for deeper integration into the conversational economy.

Also read: Google rolls out conversational AI in Search Ads

Campaigns & marketing

Even though brands have not yet specifically started campaigning for conversational commerce, the strategy of consumer ease and instant engagement is already shaping marketing decisions. Marketers are increasingly designing journeys that prioritize seamless interactions, personalization, and convenience - core principles of conversational commerce. 

As chat-based shopping becomes more mainstream, marketing efforts are expected to shift from awareness-driven campaigns to contextual, conversation-led experiences that convert interest into action within the same interaction.

Kishor Fogla, Founder, Yellow Slice, highlighted that though chat channel budgets are still taking shape, many large companies now allocate dedicated funds. Over 60% of Indian enterprises are ramping up chatbot investments to enhance the entire sales journey, while smaller firms are also seeing strong gains in sales and engagement. “In general, conversational commerce campaigns present a much better investment opportunity than ordinary digital media expenses,” Fogla noted. “Margins become wider for firms that use the human touch in their customer relationships, especially those with a large offline customer base. Businesses find it easier to justify costs and falling returns when conversion rates and customer lifetime value improvements are significantly higher.”

He added that the evidence supporting conversational commerce’s impact is impossible to ignore. “It has the potential to cut acquisition costs by half and increase income by 10–30%. On top of that, brands are seeing remarkable improvements in lead-to-conversion ratios and repeat purchases compared to traditional ad channels,” Fogla said.

This is well reflected by the brands too. boAt now views conversational commerce as more than a supplementary channel, it increasingly commands focus alongside their core e-commerce platform. “Given the surge in WhatsApp adoption in India, and the proven superior conversions and lower acquisition costs, boAt has ramped up investment in messaging storefronts. Investments are being done into scaling conversational tools, building deep analytics, and creating tailored campaigns for chat-based shopping journeys.”

According to the industry veteran, conversational commerce hasn’t yet taken off in large-scale advertising, with most brands still observing and experimenting as consumer behavior evolves. However, he expects a significant uptick in adoption by early next year.

Kulkarni added that early-stage adoption has historically been funded from innovation or experimental budgets, but they’re now seeing a shift toward dedicated conversational commerce budgets as ROI and learnings become tangible. “Brands that have run multiple pilot campaigns recognize the long-term value, not just in immediate conversions, but in customer experience, loyalty, and data capture,” he concluded.