This review-based work has followed the descriptive method of research and it relies on the available existing research work published in various journals and periodicals. To achieve the objectives of this chapter, the reviewed works have been categorized and demonstrated to figure out the major outcome of this work. Based on the existing research work, the conclusion is made. The retail industry in India plays a crucial role in the gross domestic product under the service sector. It is the fourth biggest industry in the World and is expected to grow rapidly at the global level. Traditionally, the retail business was run through small vending outlets. However, after the new economic policy, there was a robust positive change in the retail industry in India. Retail companies are interacting and integrating with AI technology to establish the best client experience and profitability. Along with client delight, it also helps retail businesses optimize their inventory and enhance the clarity of demand forecasting, helping in various marketing campaigns and in-store AI-driven digital merchandising. According to India Retailer, the nation’s retail segment has revealed impressive growth and development in recent decades. With a market share of over 10% of the nation’s Gross Domestic Product (GDP) and ranked fourth internationally, the nation’s retail sector is well-contributing in terms of employment generation. The mobile and digital instruments recognize clients and customize the online retail experience to reflect their present context of purchase and past purchases, and buying behavior and style. On the whole, AI enables data-based decision-making and helps eco-friendly unique practices. AI supports accessibility and cost-effective business operations in the retail sector. However, it has certain challenges such as data privacy and lack of infrastructure and capital formation.