Tech Desk: India’s upcoming festive sales on platforms like Amazon and Flipkart are set to be bigger than ever, but a new threat looms: AI shopping tools fraud. Banks globally are sounding the alarm, warning consumers that while these AI assistants promise to simplify deal hunting, they could also make festive season scams significantly more sophisticated and harder to detect.

Financial institutions, including NatWest and Bank of America, have expressed growing concerns as AI technology rapidly outpaces current industry standards and consumer protection frameworks. These AI tools, from companies like OpenAI and Google, are designed to compare products and offers, yet it remains unclear whether they truly prioritize a shopper’s best interests or could be exploited by malicious actors.

The complexity arises from the layered discounts common during sales—product price cuts, bank promotions, exchange offers, and EMI plans. An AI system, if compromised or designed to mislead, could funnel users towards fraudulent deals or compromise personal data, making it difficult for shoppers to discern legitimate offers from elaborate traps.

As millions prepare for the Great Indian Festival and Big Billion Days, the integration of AI into the shopping experience adds a crucial layer of caution. Consumers are advised to exercise extreme vigilance, verify deals independently, and be wary of requests for sensitive information, especially when AI tools are involved in their purchasing decisions.