When Supertech Laminates, a small manufacturing firm in India, began refining its export strategy using AI-powered tools, the goal wasn’t to follow a trend — it was to stay competitive. The company is now aiming for $10 million in revenue by 2028, attributing its growth to better data use and AI-led insights.
Across India’s 63 million micro, small, and medium enterprises (MSMEs), similar changes are quietly unfolding. What was once the domain of large corporations — deploying AI to streamline operations, automate marketing, and drive decision-making — is now within reach for small businesses with limited resources.
A Salesforce survey from December 2024 found that 91% of SMBs using AI reported revenue growth. For many Indian MSMEs, AI adoption is becoming essential.
“India’s SMBs and MSMEs, which contribute over 30% to the country’s GDP and employ more than 110 million people, are at a pivotal moment in their digital journey. AI is no longer a distant ambition; it’s becoming a real enabler, helping businesses streamline operations, personalise customer experiences, and make smarter decisions at speed and scale,” said Arun Kumar Parameswaran, EVP & MD – Sales & Distribution, Salesforce South Asia.
“This transformation is already visible across sectors — from small manufacturers using AI to optimise production planning, to service providers automating customer support, and local retailers leveraging AI-driven insights for inventory and demand forecasting. These advancements are putting the power of data-driven decision-making into the hands of business owners, without the need for deep technical expertise,” he added.
How AI is powering everyday business tools
Chatbots remain the most common entry point for AI adoption among small businesses. Platforms like Tidio, ChatBot.com, Crisp, and ManyChat are popular for automating customer service. WhatsApp Business API enables integration of AI chatbots through third-party providers such as Twilio, Yellow.ai, Gupshup, and Haptik.
These platforms offer affordable or free tiers and allow businesses to provide 24/7 customer support via websites and social media. But AI’s role goes far beyond chat services.
“AI is no longer a futuristic concept; it’s here today, making an extraordinary difference in how small businesses operate, compete, and grow,” said Laka Sriram, VP of Product, Independents at GoDaddy.
In marketing and content creation, tools like OpenAI’s ChatGPT, Jasper AI, and Copy.ai help SMBs generate blogs, ad copy, and emails. ChatGPT is free for general use, with GPT-4 available via OpenAI’s Plus plan for $20 per month. Jasper, designed for marketers, starts at $39 per month and includes integrations like Grammarly and Surfer SEO for content optimisation.
For design work, platforms like Canva use AI for writing and design suggestions on both free and Pro plans. Tools such as DALL-E 3, Stability AI’s DreamStudio, and Google Gemini’s Veo support small businesses in creating professional visuals with minimal cost or effort.
In video production, Descript enables AI-powered editing for podcasts and marketing content, while Synthesia allows the creation of AI avatar-based videos, starting at $18 per month.
Automation and analytics
Automation tools such as Zapier and Make.com connect platforms — from email to CRMs, social media, and payment systems — to automate repetitive tasks without coding. Zapier’s free tier handles 100 tasks per month; Make.com covers 1,000 operations on its free plan.
“For small businesses, every minute and every rupee counts. They need technology that doesn’t just work but works smarter,” said Yogesh Pant, MD and VP of Engineering, GoTo India, in a statement to CNBC-TV18.
Pant pointed to LogMeIn Resolve, GoTo’s AI-enabled IT platform, as an example of how businesses can reduce downtime and address issues proactively.
“The big shift today is that AI can now help prevent problems before they happen… For us, AI isn’t about replacing people but freeing them to focus on what matters most: serving customers and driving growth,” Pant said.
Firms are also using Google Analytics 4 and Looker Studio for AI-led website performance tracking, while heat-mapping tools like Hotjar provide user behaviour insights. These tools are often free, enabling data-led decision-making regardless of company size.
Upskilling and learning: AI to teach AI
AI is also playing a role in employee training. Platforms such as Coursera, Udemy, and LinkedIn Learning offer affordable courses on AI, marketing, and data analytics. Tools like ChatGPT and Google Gemini function as interactive tutors, helping users draft content or solve problems. Google’s NotebookLM aids in organising and summarising research and is currently free in beta.
For developers, GitHub Copilot offers AI-supported coding for $10 per month, while Duolingo Max uses AI to enhance language learning for workplace communication.
“We’re seeing growing interest in using generative AI to enhance customer service, streamline processes, and enable faster decision-making,” said Geeta Gurnani, IBM Technology CTO & Technical Sales Leader, India & South Asia.
IBM’s watsonx platform offers domain-specific AI tools for HR, procurement, and finance.
Sector-specific AI and India’s next leap
India’s next phase of AI growth is expected to centre on Vertical AI — specialised tools designed for sectors such as BFSI, healthcare, manufacturing, and logistics.
“India is entering a new phase of AI adoption, led by Vertical AI — sector-focused solutions for manufacturing, BFSI, healthcare, and logistics,” said Sudeepta Veerapaneni, Partner at Deloitte India.
Some businesses are already seeing measurable results. A regional retailer has reduced stockouts by 40% and cut inventory costs by 25% using AI forecasting. A service provider boosted customer engagement by 60% with AI-enhanced language models.
Vijayant Rai, Managing Director – India, Snowflake, said the shift is critical to ensuring MSMEs are not left behind.
“India’s MSMEs are the backbone of our economy, contributing nearly 30% to GDP and employing over 110 million people. As we move toward a data-first future, it is critical that these businesses are not left behind in the AI revolution. At Snowflake, we believe AI should be a growth engine for every business, not just the largest ones,” Rai said.
“MSMEs adopting AI will help accelerate our digital economy and be a critical catalyst in India’s Viksit Bharat vision. That’s why we are focused on making enterprise-grade AI accessible to MSMEs through our AI Data Cloud. With tools like Snowflake Cortex AI and Cortex AISQL, small businesses can now analyse documents, images, and unstructured data using simple SQL — no complex infrastructure or coding required.”
Rai pointed to examples like Chalo, which uses machine learning to improve bus ETA predictions for passengers, and Grow Indigo, an agritech firm that has slashed the time needed for BI reports from 100 hours to near real-time through AI tools. “By using AI-powered document processing, they aim to reduce farmer enrollment time by 30%, bringing it down from 40–60 minutes per farmer,” Rai said.
Grow Indigo is now adopting AI to automate farm boundary validation and onboarding, and moving towards AI-powered data bots for dynamic queries.
“One of the clearest signs of AI’s growing influence is the wave of entrepreneurial interest in the area. Notably, we’ve seen this firsthand in our accelerator programme, TechXpedite, where the majority of startup applications were dedicated to pure AI solutions, reflecting this trend,” said Dr Tridib Mukherjee, Chief Data Science & AI Officer, Games24x7.
Still, hurdles remain. A June 2025 NITI Aayog-commissioned study reported that 59% of MSMEs cited cost and digital skills gaps as primary barriers to adopting AI.
“SMBs have a lot to gain from AI; however, they often grapple with the high costs and complex infrastructure needed to support it,” said Mitesh Jain, Regional VP, India, Akamai Technologies.
To address these issues, Akamai is offering more accessible cloud solutions, and the Wadhwani Foundation is supporting small businesses through free AI tools offered under initiatives like Ignite and Liftoff.
“AI has brought about a paradigm shift in how businesses operate, but for many SMBs, its true potential remains out of reach due to cost and accessibility barriers,” said Dr Ajay Kela, CEO of the Wadhwani Foundation.
The road ahead
Government initiatives like Digital India, ONDC, and the IndiaAI Mission aim to reduce infrastructure and policy obstacles. The World Economic Forum estimates AI could add $500 billion to India’s GDP by 2025.
