Citing the awareness gap, about 65 per cent of tech micro, small and medium enterprises (MSMEs) are struggling due to the limited awareness about available tools and resources, while 72 per cent emphasized the necessity for AI training programs underlining the importance of skill development in facilitating adoption, according to a paper released by Nasscom and Meta.
Additionally, financial constraints significantly hinder tech-enabled MSMEs from adopting AI technologies, with 59 per cent of surveyed enterprises citing budgetary limitations as a barrier to investing in necessary tools and resources. An overwhelming 91 per cent of these enterprises advocate for making AI technologies more democratically accessible.
Further, nearly half (45 per cent) of the surveyed enterprises highlighted the need for tailored use cases demonstrating AI's benefits across specific industries. To address these and other challenges, the white paper recommends an MSME-first approach to help them reap the AI Dividend.
The approach includes comprehensive actions to be taken by the industry and ecosystem. These actions include, among others, the creation of hyperlocal accelerator programs for tech-enabled MSMEs, financial support including grants and subsidies for technical training, skill development, peer learning programs and access to tools and resources that prioritise ease of implementation and integration with existing business processes thereby reducing the technical barriers for adoption.
The analysis revealed a strong belief in the potential of AI among tech-enabled MSMEs where 94 per cent of them acknowledged its ability to drive business growth and 87 per cent of respondents were confident in its capacity to improve overall productivity.
Underlining the importance of AI for tech-enabled MSMEs, the paper identified key areas where AI can catalyse their business growth. Specifically, 48 per cent of respondents support AI’s potential in content creation and marketing and 46 per cent in customer engagement, followed by 68 per cent in developing new products and services.
Furthermore, with productivity being a cornerstone of business success, the white paper calls out AI as a transformative tool in streamlining processes, reducing operational inefficiencies, enhancing output quality, and maximizing profitability.
Sangeeta Gupta, Senior Vice President and Chief Strategy Officer, Nasscom said, “MSMEs, pivotal to India's economic engine, are at a critical point in today’s fast-evolving tech landscape. Integrating AI offers them a unique chance for unprecedented growth, increased productivity, and sustainable innovation."
Gupta added that ecosystem collaboration, coupled with access to user-friendly tools and resources, is essential for tech-enabled MSMEs to harness AI's full potential and for India to maximize its AI dividends.
Sandhya Devanathan, Vice President (India), Meta said, “As the backbone of the Indian economy, empowering MSMEs with cutting-edge business solutions is pivotal for the growth of the country. With its massive developer base and the third largest startup ecosystem in the world, India is going to be a driving force in the global AI revolution."
