The handloom clothing sector, renowned for its historical and cultural significance, faces challenges in maintaining consumer interest amidst the dominance of fast fashion, particularly in online markets. State-run handloom websites serve as crucial platforms for preserving and promoting traditional crafts. However, their overall effectiveness is often hindered by varying levels of consumer awareness and shifting preferences, which makes it challenging to capture and maintain consistent interest in these products. Leveraging AI on these platforms can enhance artisan visibility by showcasing stories, techniques, and traditions, fostering trust and appreciation for authentic handloom products. This strategy repositions consumers as key players in sustaining the craft while directly supporting artisans. Through an analysis of survey data and government websites, the study identifies barriers hindering online consumer interaction with handloom products and explores the potential for AI integration to enhance these platforms. This integration promotes economic inclusivity in rural communities by addressing rural–urban dynamics, drawing consumers from urban areas while maintaining a focus on human-centered values and experiences.