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Last updated: 05 Jun, 2025  

ai-smes.jpg Indian MSMEs can no longer afford to ignore AI

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Bikky Khosla | 05 Jun, 2025
As someone closely monitoring the evolving industrial landscape in the country, I’m really saddened by the widening gap between our MSMEs and their global counterparts when it comes to embracing Artificial Intelligence (AI). Despite the transformative potential of AI, especially in manufacturing, our enterprises continue to trail behind in adoption of the various innovative AI tools.

The numbers are stark. It is no secret that AI can enhance productivity in manufacturing by as much as 30%, yet our businesses remain reluctant, if not resistant, to integrate these technologies. The hesitation, I find, stems not just from infrastructural limitations, but from a deeper cultural and strategic gap. I would say this reluctance stems from lack of awareness, limited technical capability, and a perception of AI as an inaccessible or even threatening innovation.

This reluctance is costing us dearly. While global peers are reimagining supply chains, optimizing production, and improving customer experience through AI, we are still grappling with manual inefficiencies. In an increasingly competitive global market, this is not just a missed opportunity, but is a growing vulnerability.

That said, the path forward is clear. Affordable, context-sensitive AI tools are beginning to emerge, and are creating solutions that understand India’s linguistic and cultural complexity. What we need now is a shift in mindset. We need a readiness to learn, to adapt, and to invest in the future. And education and awareness must lead the charge. 

Our MSMEs need to understand that just like our global counterparts we now need to implement AI tools in our processes to thrive in this competitive scenario.

Moreover, I urge our government to come up with more inclusive policies for our MSMEs to provide incentives, training, and access to AI infrastructure specifically for MSMEs.

AI today is not just a buzzword reserved for tech giants. It is a tool that can help even a small manufacturing unit to streamline its production, or improve its quality control. If only we are willing to look beyond the fear and towards the opportunity, the benefits of AI are real and within reach of even the smallest of enterprises. 

I would appeal to all our entrepreneurs that empowering your business with AI is no longer a luxury now, rather it is a necessity. The rest of the world is not waiting, so neither should we.

I invite your opinions.

 
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