MSMEs in India recognize AI’s potential for growth, but face challenges in adoption due to limited resources and expertise. This article explores the need for affordable, tailored AI solutions, industry-specific ecosystems, and partnerships to accelerate AI integration and drive tangible business outcomes.
Programmes such as the MSME Champions portal set up by the government are also helping the MSMEs to become aware of the relevant approaches to AI adoption applicable to them.
MSMEs that account for 30% of India’s GDP and employ close to 10 million people, have been constrained with limited access to technology, skills and the financial wherewithal to adopt AI. Although the India AI Mission is supportive of AI adoption by MSMEs and has committed an investment of $1.25 billion to build the required infrastructure and tools for startups, the Indian MSMEs are yet to aggressively embark upon the AI journey.
Singapore and UAE have put in place compelling initiatives in AI that are supportive of MSMEs. They are provided with resources and training to integrate AI into their operations effectively. AI-driven tools are helping MSMEs in the UAE to enhance competitiveness and help them to tap into regional and global markets more effectively. Similarly, Singapore has a focussed national strategy for AI adoption by MSMEs. The government cofunds tools as well as people for AI projects and the public-private-university collaboration resulting in faster pace of AI adoption have resulted in tangible cost reduction and revenue growth.
In India, as per the whitepaper released by Meta and Nasscom in 2024, 94% of tech-enabled MSMEs recognise the potential of AI to drive business growth and 87% are confident of enhanced productivity with AI. There is awareness on how AI could support in creating new products or services. However, 91% companies are seeking more inclusive and affordable AI solutions; 45% have highlighted the need for tailored use cases.
In this context, it would be useful to take a look at how AI-led solutions are currently helping MSMEs. Yellow.ai bots and Interakt App are enabling MSMEs to automate customer support across multiple channels and improve customer engagement. ZappFresh is using AI to optimise inventory management and logistics and reach new customers in small towns for fresh meat deliveries. Kinara Capital is servicing more than 40,000 MSMEs through their loan disbursement app. Stovekraft, a kitchen appliances company is able to reduce its inventory holding and optimise its production schedules by leveraging analytics.
Programmes such as the MSME Champions portal set up by the government are also helping the MSMEs to become aware of the relevant approaches to AI adoption applicable to them. While there are several cost effective and innovative AI led solutions available, the areas that require attention include expertise to go beyond the digital marketing methods and integrate AI with the business and resources and skills required to build and implement solutions.
Hence there is an urgent need to build an industry specific ecosystem for design and access to AI solutions possibly driven by industry associations. Long- standing partnerships could also be stitched with the universities for getting access to talent and the emerging tools through the internship programmes that the government has put in place. The question is no longer about whether MSMEs can adopt AI, it is about how quickly they can and start seeing tangible results.
Source: https://www.financialexpress.com
