As Amazon and Flipkart prepare for their major festive sales in India, banks are warning that AI shopping agents could introduce new fraud, payment security, and data privacy risks into online buying.
The alert comes as technology companies develop AI tools that can search for products, compare prices, and in some cases help complete purchases on a shopper’s behalf. While these agents could make e-commerce faster and more convenient, financial institutions say they also raise concerns about scams, incorrect transactions, and the misuse of personal information.
Why banks are concerned
The issue goes beyond AI-powered product recommendations. Newer shopping agents are being designed to handle multiple steps of a purchase, from finding an item and comparing prices to selecting a product and helping finish the transaction.
That changes the traditional shopping process. Instead of a customer choosing a product and authorizing every step, an AI agent could carry out much of the purchase journey based on an initial instruction.
Banks including NatWest, Bank of America, ING, Capital One, and Commonwealth Bank of Australia have warned that consumers could end up buying the wrong product, spending more than intended, or being exposed to scams.
Payment and data privacy questions
Financial institutions are particularly concerned about how AI agents handle payment information. An agent could request card details, enter them directly on a website, or direct shoppers toward payment methods that offer weaker consumer protections.
There are also questions about responsibility. If an AI agent makes a wrong purchase or a transaction turns out to be fraudulent, consumers may not know whether the retailer, payment provider, or AI service should handle the dispute.
The banks have called for greater transparency, including clear disclosure when an AI agent is involved in a transaction, stronger data safeguards, and more information about how these systems make decisions.
Festive sales will test consumer trust
The timing makes the warning especially relevant for Indian shoppers. Amazon’s Great Indian Festival is scheduled to begin on October 8, while Flipkart is preparing for its Big Billion Days sale. Both events are expected to draw large numbers of shoppers looking for discounts on smartphones, electronics, appliances, fashion, and other categories.
Festive sales typically bring a surge in online activity, and AI tools are becoming more common for product discovery and price comparisons. Consumers are therefore likely to encounter AI-assisted shopping alongside sale messages, bank offers, and promotional links.
What shoppers should watch for
- Verify retailer websites before entering payment or personal information.
- Avoid suspicious links and unexpected requests for banking details.
- Review AI-assisted purchases carefully before confirming a transaction.
- Check which payment method is being used and whether it offers consumer protection.
- Keep records of orders and disputes in case a transaction goes wrong.
The bigger question for festive shoppers
This festive season, shoppers may use AI simply to find deals, or they may allow these systems to make purchasing decisions and handle transactions for them. As AI moves closer to the payment stage, trust, transparency, and consumer protection are becoming just as important as convenience.
