New Delhi, Sept. 1 -- The global acceleration in artificial intelligence (AI) investment, digital advertising and convenience-led e-commerce is creating a favourable outlook for India's internet sector, said Elara Capital, adding improving monetisation, faster fulfilment and scale-driven profitability are expected to benefit major Indian e-commerce companies.

According to the report, e-commerce and food-tech platforms are increasingly demonstrating capital-efficient growth, even as major technology companies face near-term pressure on free cash flow (FCF) from heavy AI investments.

"AI investment continues to accelerate, with capex at Amazon, Meta and Alphabet up 68 per cent, 83 per cent and 100 per cent YoY, respectively," it said addi...