Artificial Intelligence (AI) has taken the world by storm! While it was the buzzword of 2023, in this year it is changing the face of industries and sectors with its proof of concept. According to Stanford University’s annual AI Index report, India saw the fifth highest investments last year in start-ups offering AI-based products and services. Notably, as India’s tech revolution shapes up, AI could prove to be one of the most game-changing technologies propelling growth for the nation’s MSMEs.
A white paper titled, ‘Empowering India’s Growth – Unlock AI’s Potential for Tech-enabled MSMEs’ by Nasscom and Meta, notes that the AI market in India is projected to reach $17 billion by 2027, pacing at an annualized rate of 25%-35% from 2024 to 2027. So, will it be accurate to say that AI is the new silver bullet for India’s MSMEs? Let’s understand more.
94% of AI among tech-enabled MSMEs see the promise of AI, acknowledging its ability to drive business growth. 87% respondents remain confident in its capacity to improve overall productivity, as observed in the white paper. Furthermore, the paper sees AI as a transformative tool in streamlining processes, reducing operational inefficiencies, enhancing output quality, and maximizing profitability.
So, how can AI forge a big change in the MSME sector? AI can streamline processes and operations with ease, allowing employees to work on strategic tasks. It can assist in providing timely financial support by offering real-time credit scoring and inclusive credit processes. AI-powered chatbots and virtual assistants may handle customer inquiries and support requests around the clock. MSMEs also have a good chance at enhancing customer experience and deliveries by utilising AI for shipment.
Given the pressure of large volumes of data which needs to be read, AI can be of help to MSMEs in making informed decisions about inventory management, marketing strategies, and financial planning. Remarkably, it can even forecast trends and predict future outcomes based on historical data, allowing ventures to anticipate market changes and adjust their strategies accordingly.
But with every great opportunity, come challenges. So, while the adoption and inclusion of AI remains promising for MSMEs, tools and resources must be made available to bridge the gap. Next, professionals must engage in training and up skilling for its successful integration. Industries too need to consider customising their requirements around AI to reach their end-goals. Lastly, the Indian ecosystem ought to be conducive to lead the way in AI.
