YouTube Launches AI-Powered Shopping Tools in India to Enhance Creator-Led Commerce

On October 10, 2025, YouTube announced the rollout of its latest AI-powered features in India for creators enrolled in its Shopping Affiliate programme. The new features aim to enhance creator-led commerce by offering tools that automate product tagging, enable swapping sponsored ads in long-form videos, and add brand website links in Shorts. The AI system automatically tags products at the moment a creator mentions them in videos, identifying moments of peak viewer interest. This AI product-tagging tool is distinct from Google’s Gemini AI, and YouTube plans to test its ability to detect and tag all eligible products mentioned in videos later this year.

These updates come at a time when generative AI is increasingly shaping online commerce. Startups like OpenAI and Perplexity have introduced in-chat shopping and payments, reflecting a shift from traditional search engines and e-commerce platforms to conversational AI agents for personalized, frictionless shopping experiences. However, YouTube clarified that it currently does not allow third-party agents to interact with its platform or make automated purchases through creator videos, emphasizing controlled access to AI-driven commerce features.

Regarding the accuracy of its AI product-tagging system, YouTube has not provided definitive details but stated that the feature will undergo several trials to improve understanding and performance. Shubha Pai, Head of YouTube Sales and Solutions-India, explained that as a generative AI tool, it will continuously learn and evolve based on trial outcomes. Eligible Indian creators will also gain the ability to insert and replace brand segments in long-form videos, allowing more flexible monetization options. Additionally, the platform’s new Creator Partnerships Hub within Google Ads will facilitate easier brand discovery and integration of content into advertisements.

Nykaa and Purplle have been onboarded as new merchant partners, allowing creators to tag products from these beauty and lifestyle brands, in addition to existing e-commerce platforms Flipkart and Myntra. YouTube also announced plans to launch a program in collaboration with Nykaa to discover, enable, and accelerate the next generation of India’s beauty and lifestyle creators.

The YouTube Shopping Affiliate programme, launched in India last year, enables creators to monetize their content through features such as Product Stickers on Shorts and a Chrome Extension that allows creators to save products for tagging in videos. Over the past three years, YouTube has paid ₹21,000 crore to creators through this programme. Currently, more than 40% of eligible creators in India are enrolled, with 3 million videos carrying affiliate product tags.

YouTube is rapidly emerging as a significant shopping channel in India, with over 200 million logged-in users performing shopping-related searches on the platform. Shopping-related watch time has grown by more than 250% year-over-year, reflecting strong engagement. Surveys indicate that 88% of Indian shoppers consider YouTube important for product research and decision-making, while 85% trust creator opinions regarding brands and products.

Overall, YouTube’s AI-powered features and expanded affiliate programme reflect a strategic push to integrate technology and commerce, empowering creators to monetize content effectively while providing users with enhanced shopping experiences. These developments position YouTube as a major platform for creator-led e-commerce, combining AI-driven automation with human influence to shape the future of online retail in India.