Artificial Intelligence (AI) is revolutionising the realms of retailing and marketing through the use of analytics which help businesses understand consumer behaviour and predict purchase decisions as well as offer consumers a personalised experience. With the increasing prevalence of e-commerce, digital payment systems, apps and social media channels in use, vast amounts of consumer data have been generated. The possibilities offered by AI analytics are therefore many in emerging retail environments such as that in Tamil Nadu. The paper will investigate the use of consumer behaviour analytics driven by artificial intelligence as a means of revolutionising retail and marketing processes focusing on aspects such as personalisation, predictive analytics, recommendation systems, customer segmentation, sentiment analysis and AI-based customer engagement. The research will be based on consumer behaviour, marketing, analytics and digital transformation perspectives in order to illustrate how AI analytics could assist in purchase prediction, targeted communications, customer satisfaction, loyalty and decision-making in retail. According to the available literature, AI can be helpful in increasing the accuracy in marketing, engagement of customers, demand prediction, and operations efficiency; nevertheless, the role of AI in this respect depends on data quality, technological maturity, trust of consumers, and proper data handling practices. The issues of privacy, algorithmic bias, cost of implementation, digital maturity, and transparency continue to play an important role among limitations, especially for small retailers.