How AI Is Supercharging India's Intermediaries

Three’s not a crowd, it’s a party in India’s economy

Finding a house in India? That’s a three-party deal. Booking a flight? Three-party deal. Even buying a SIM card often involves someone other than just you and the seller.

Why are intermediaries so deeply entrenched in India’s economic fabric? This is not because of inefficiency or lack of technology but because India operates as a low-trust ecosystem where relationships matter more than anonymous systems and evidence is everywhere.

When an Indian consumer needs to make any significant purchase, they rarely go directly to a platform or company – they reach out to someone referred to them that they can trust. Many Indian startups have battled this reality and burned billions offering steep discounts to bypass these intermediaries in a bid for loyalty. The result, however, is often unsustainable unit economics and disappointing outcomes because they fundamentally misunderstand India’s commercial fabric.

This is precisely where AI creates a unique opportunity. Rather than eliminating intermediaries, AI can supercharge them – bridging information gaps, enhancing capabilities, and enabling scale while preserving the trusted human relationships that Indians value.

AI Turns India’s Relationship Economy Into A Competitive Advantage

India’s intermediary ecosystem has traditionally thrived on personal relationships but often struggled with information asymmetry, operational inefficiencies, and scale limitations. AI addresses these shortcomings and has the potential to transform what was once a constraint into a significant competitive advantage.

Expert-Level Insights Without Years Of Training

A startup integrating AI in commercial fitouts, captures thousands of data points from each construction project. Their system precisely estimates material requirements, identifies productivity differences between day and night shifts, and optimises labor allocation with algorithmic precision that human managers simply cannot match.

What’s happening here is the transformation of intermediaries through AI-powered expertise. A contractor using the platform can now make without having spent those decades in the industry. This AI augmentation creates a new class of

super-powered intermediaries in India’s construction ecosystem and democratises the previously concentrated expertise among just a few.

Automating Complex Multi-Party Interactions

Another company operates as an AI shopping assistant on WhatsApp, where users simply message what they want. Behind this seamless experience, the AI simultaneously manages dozens of conversations with local businesses, comparing prices, checking availability, and negotiating terms that would overwhelm any human assistant.

This exemplifies how AI supercharges intermediaries by handling what was previously impossible: maintaining simultaneous, real-time dialogues with dozens of parties. Unlike western automation that aims to eliminate human involvement entirely, the startup enhances the intermediary model by managing complex multi-party coordination while preserving the trusted advisor’s final judgment. This approach acknowledges India’s preference for relationship-driven transactions while removing the communication bottlenecks.

From Service Provider To Strategic Advisor

A local insurance agent in tier-II India who once managed 50-100 client relationships can now serve 500+ with AI assistance. AI tools can automatically handle policy comparisons and routine inquiries while proactively identifying life events from client data – a child approaching college age, a property purchase, or family health changes – that suggest coverage adjustments.

This demonstrates how AI elevates intermediaries to higher-value roles. What was once a reactive, transaction-focused operation becomes proactive and insight-driven.

In the Indian context, this scalability is crucial. Vast populations remain underserved in critical sectors like healthcare, education, and financial services. AI enables trusted intermediaries to expand their reach more effectively than direct digital models by bridging service gaps while maintaining the relationship-driven approach that Indian consumers value.

A Distinctly Indian Approach To AI Adoption

What emerges is a nuanced approach that’s uniquely suited to India’s economic landscape. While western markets often view AI as a replacement for human labor, India’s opportunity lies in using it as a collaborative tool that enhances human capabilities.

The intermediary can now become more powerful, not obsolete – armed with data-driven insights, freed from administrative burdens, and able to scale their impact. This solves the trust deficit that has long complicated digital transactions in India while maintaining the personalised interactions that consumers value.

The future belongs not to those who can replace human connection but to those who can most effectively augment and amplify it.

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