Artificial Intelligence (AI) has emerged as a transformative driver of productivity dynamics in modern commerce, particularly within the rapidly evolving Indian economy. This study investigates the extent of AI adoption and its impact on operational efficiency, decision-making, and customer engagement using secondary data from credible reports and institutional sources. The findings reveal that approximately 87–90 percent of Indian enterprises have integrated AI into at least one business function, indicating its transition into a core strategic tool. Empirical evidence suggests that AI-driven automation has reduced task completion time by 40–60 percent, while productivity gains of up to 45 percent have been observed in sectors such as information technology and services. Furthermore, AI has enhanced decision-making accuracy by 25–50 percent and improved customer engagement through increased conversion rates (20–35 percent) and reduced response time (60–70 percent). Despite these significant advancements, challenges such as a 55–65 percent skill gap, high implementation costs, and data privacy concerns continue to hinder widespread and equitable adoption. At the macroeconomic level, AI is projected to contribute approximately USD 500–600 billion to India’s GDP and generate substantial employment opportunities by 2030. The study concludes that while AI is fundamentally reshaping productivity and efficiency in Indian commerce, its long-term impact depends on inclusive adoption, skill development, and effective policy support.