The PHD Chamber of Commerce and Industry (PHDCCI) convened a high-level conference to explore how Artificial Intelligence (AI) can be leveraged to combat frauds and counterfeiting in India’s booming retail and e-commerce sectors.
Held with support from the Department of Consumer Affairs (DoCA) under the Jago Grahak Jago initiative, the event brought together senior government officials, regulatory leaders, and industry stakeholders to strategise on using AI to strengthen consumer trust and business transparency.
AI as a proactive defense against digital fraud
Delivering the keynote, Nidhi Khare, Secretary, DoCA, highlighted that consumer trust is the foundation of India’s digital economy — and AI can be a critical tool in proactively detecting fraud before it escalates.
“Innovation must continue, but never at the cost of consumer safety. AI gives us the means to achieve both—if used responsibly,” she said.
Her views were echoed by Padma Jaiswal, IAS, who emphasized the need for tighter compliance, product standardisation, and AI-led monitoring to build a transparent digital marketplace.
Also read: MSME Ministry Kicks Off Special Campaign 5.0
E-commerce, telecom, and fraud convergence: A regulatory concern
From a policy perspective, Dr. Ravi Gandhi, Chair of PHDCCI’s Retail & E-Commerce Committee and President of Reliance Retail, cautioned that the blurring lines between e-commerce and telecom are creating new vulnerabilities.
“AI and data analytics must serve as our first line of defense. Regulations must keep pace with fraud innovation,” he noted.
Aman Jain, Director of Public Policy at Amazon India, shared that India lost nearly ₹7,000 crore to online scams in the first five months of 2025. He called for closer collaboration between government and platforms to deploy AI-based counterfeit detection at scale.
Industry and regulators agree: Tech must be a shield, not a threat
Hemant Jain, President, PHDCCI, called AI a double-edged sword. While it powers innovation, it also enables deepfakes, phishing scams, and sophisticated cyber frauds.
According to RBI data, while the number of fraud cases declined in FY25, the total fraud value surged to ₹36,000 crore — showing that frauds are becoming fewer, but more costly.
“Artificial Intelligence is no longer optional. It’s already part of our economy. What matters now is how we govern and use it,” Jain said.
MSMEs and consumer safety: Shared responsibility in the digital age
Closing the session, Dr. Ranjeet Mehta, CEO & Secretary General of PHDCCI, stressed that consumer vigilance is still the most effective defense, even in the age of AI.
He reiterated that awareness campaigns, regulation, and responsible tech use must go hand-in-hand to ensure a safe, fair, and inclusive digital marketplace, particularly as MSMEs become more digitally integrated.
The conference ended with a unified message: AI must not just protect innovation, but also protect trust — and India’s retail ecosystem must lead with accountability, collaboration, and consumer-first design.