Artificial Intelligence (AI) is playing an increasingly important role in online shopping. According to a recent report, 87% of consumers believe that AI-assisted shopping is faster and more convenient. From product recommendations to payment gateways, AI has simplified the e-commerce experience.

However, the same report highlights a surprising reality: 88% of shoppers still prefer Cash on Delivery (COD) as their payment method. The reasons include lack of trust in online transactions, fear of fraud, and uncertainty about product quality.

Experts suggest that even though digital payment infrastructure has improved significantly, the habit of opting for COD remains deeply rooted among Indian consumers. Many shoppers prefer to see and verify the product before making payment.

The report further reveals that COD is more dominant in Tier-2 and Tier-3 cities, while metro cities are witnessing comparatively higher adoption of digital payments.

For e-commerce companies, this trend presents both a challenge and an opportunity. On one hand, they need to build greater consumer trust to encourage digital payments; on the other, they must continue offering COD to meet customer demand. 

Ultimately, the findings reflect a key insight: no matter how advanced technology becomes, consumer psychology and trust will continue to shape the future of online shopping.