As Amazon and Flipkart prepare for their major festive sales in India, banks are warning consumers about a newer risk emerging in online shopping: AI agents that can search for products, compare options and potentially complete purchases on a shopper’s behalf.
The warning comes as technology companies increasingly develop AI tools for e-commerce. While these systems could make shopping faster and more convenient, banks say they also introduce new concerns about scams, fraud, payment security and the handling of personal data.
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 attract shoppers looking for discounts across smartphones, electronics, appliances, fashion and other categories.
The concern is not limited to AI recommending products. Newer shopping agents are being designed to handle several steps of a purchase, from finding products and comparing prices to selecting an item and helping complete the transaction.
That changes the traditional online-shopping process. Instead of a customer directly choosing a product and authorising each step, an AI agent could carry out much of the 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.
Financial institutions are particularly concerned about how AI agents handle payment information. An agent could potentially request card details, enter them directly on a website or direct shoppers toward payment methods that provide 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.
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The timing makes the warning particularly relevant for Indian shoppers. Festive sales bring a surge in online activity, while AI tools are becoming increasingly common for product discovery and price comparisons.
Consumers are therefore likely to encounter AI-assisted shopping alongside the usual sale messages, bank offers and promotional links. Banks continue to advise customers to verify websites and avoid suspicious links or requests for sensitive banking information.
The bigger question this festive season is whether shoppers will use AI simply to find deals or 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.