AI Revolutionises the Intermediary Ecosystem in India

AI is reshaping India’s intermediary landscape by addressing challenges such as information asymmetry, operational inefficiencies, and scaling issues. This innovative technology enables intermediaries to manage real-time dialogues with numerous parties, effectively enhancing their capabilities.

Three Is Not a Crowd, It’s a Party in India’s Economy

Searching for a home in India usually involves multiple parties. Booking a flight? That involves another set of intermediaries. Even acquiring a SIM card frequently requires the input of an additional person apart from the buyer and the seller.

Intermediaries play a crucial role in India’s economic framework not because of inefficiencies or a lack of technological solutions, but due to a low-trust ecosystem where personal relationships are paramount. When an Indian consumer is making a major purchase, they often consult someone recommended to them whom they trust, rather than going directly to a platform or company. Many Indian startups have struggled with this reality, often burning substantial resources to offer significant discounts in an effort to bypass these intermediaries, leading to unsustainable business models due to a misunderstanding of India’s commercial fabric.

AI Creates Unique Opportunities for Intermediaries

Rather than displacing intermediaries, AI can enhance their functions—closing information gaps, amplifying capabilities, and supporting scalability, all while retaining the valued human relationships in India.

Expert-Level Insights Without Years of Training

A startup integrating AI into commercial fitouts captures countless data points from construction projects. Their system effectively calculates material requirements, detects productivity variations between shifts, and optimises labour allocation with exceptional accuracy that surpasses human management capabilities.

This reflects the metamorphosis of intermediaries through AI-enhanced expertise. A contractor utilising this platform can make informed decisions as if they possess decades of industry experience, all without enduring years in the field. AI empowers a new breed of highly capable intermediaries within India’s construction sector, enabling a wider distribution of knowledge that was once limited to a select few.

Automating Complex Multi-Party Interactions

Another enterprise serves as an AI shopping assistant via WhatsApp, allowing consumers to simply request what they desire. Behind this seamless interaction, the AI simultaneously conducts multiple conversations with local vendors, comparing prices, checking on availability, and negotiating terms that would otherwise overwhelm a human aide.

This scenario illustrates how AI empowers intermediaries by undertaking tasks that were previously unfeasible—navigating simultaneous, real-time communications with various parties. Unlike Western models that seek to eliminate human involvement, this startup enriches the intermediary approach by coordinating complex multi-party interactions while keeping the final judgement in the hands of a trusted advisor, aligning with India’s preference for relationship-based transactions while alleviating communication bottlenecks.

From Service Provider to Strategic Advisor

A local insurance agent in tier-II cities, who traditionally managed 50-100 client accounts, can now effectively cater to over 500 clients with the assistance of AI. AI tools can automatically carry out policy evaluations and routine inquiries while identifying significant life events in client data—such as a child nearing college age or a property acquisition—that indicate possible changes in coverage needs.

This exemplifies how AI elevates intermediaries to roles with greater value. What was once a reactive, transaction-based system transforms into a proactive, insight-driven operation.

The Importance of Scalability in the Indian Context

This scalability is crucial given that vast populations in India remain underserved in key sectors like healthcare, education, and financial services. AI allows trusted intermediaries to broaden their reach more effectively than direct digital models, bridging service gaps while upholding the relationship-driven focus that consumers in India prioritise.

A Distinctly Indian Approach to AI Adoption

A distinctive approach emerges that resonates with India’s economic context. While Western economies frequently see AI as a substitute for human roles, India’s potential lies in adopting it as a collaborative tool that enhances human capabilities.

Intermediaries can become more empowered rather than redundant—equipped with data-driven insights, relieved of administrative tasks, and capable of amplifying their influence. This effectively addresses the trust deficit that complicates digital transactions in India while preserving the personalised interactions that consumers value. The future does not belong to those who can replace human connections but to those who can best augment and enhance them.