Artificial Intelligence (AI) has transformed the e-commerce landscape, particularly in urban centres like Bangalore, India’s technology hub. This study explores how AI influences online grocery shopping behavior among Bangalore residents, focusing on factors such as personalized recommendations, convenience, trust, and purchase intention. Using a mixed-methods approach, data was collected from 400 respondents via an online survey, supplemented by secondary sources like academic journals and industry reports. The research objectives include assessing AI’s impact on consumer decision-making, identifying demographic variations in shopping behavior, and evaluating trust in AI-driven platforms. Hypotheses tested include a positive correlation between AI personalization and purchase intention, and differences in behavior based on age and income. Data analysis employed descriptive statistics, correlation, regression, and Structural Equation Modelling (SEM) to examine relationships between variables. Results indicate that AI significantly enhances convenience (β = 0.62, p < 0.01) and trust (β = 0.58, p < 0.01), driving higher purchase intention (R² = 0.68). Younger consumers (18-35) and higher-income groups showed greater reliance on AI features. The SEM model confirmed a strong fit (CFI = 0.95, RMSEA = 0.04), highlighting AI’s mediating role in shaping behavior. This study underscores AI’s potential to revolutionize online grocery shopping in Bangalore, offering insights for retailers to optimize AI strategies. Limitations include the sample’s urban focus, suggesting future research in rural contexts.