Are Nine in 10 Indian SMBs Embracing AI as Tier 2 Cities Lead the Way?
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Synopsis
Amid rising competition and technological advancements, Indian small and medium businesses are increasingly turning to AI for growth. A recent report highlights how tier 2 cities are leading this revolution, reshaping the future of business in India. Discover how these trends are influencing hiring and operational strategies across the nation.
Key Takeaways
- 90% of Indian SMBs are investing in or planning AI adoption.
- Tier 2 cities are leading in AI implementation.
- AI is viewed as essential for maintaining competitiveness.
- Hiring priorities are shifting towards digital skills.
- SMBs are restructuring operations around technology.
New Delhi, Nov 13 (NationPress) A remarkable 90% of small and medium businesses (SMBs) in India are either currently investing in or are set to adopt artificial intelligence (AI), with an impressive 92% anticipating growth in the next year, according to a report released on Thursday.
The study, conducted by career platform LinkedIn and commissioned by YouGov, revealed that SMBs in some of India's rapidly developing cities are at the forefront of AI adoption. Cities such as Chandigarh lead with full adoption at 100%, followed by Jaipur and Ahmedabad at 94%.
According to the report, SMBs are not merely optimistic but are actively restructuring their operations around intelligent systems, skilled personnel, and reliable digital platforms.
In a survey of 1,027 decision-makers from SMBs and MSMEs in major Indian cities, it was found that 57% consider AI and automation crucial for maintaining competitiveness. Furthermore, 54% believe that operational efficiency is vital for safeguarding profit margins, while 51% see digital transformation as essential for survival.
Almost all of the businesses surveyed utilize AI for workflow automation (92%) and to enhance analytics (93%). Additionally, over 90% leverage it to optimize hiring, marketing, and sales processes, as highlighted in the report.
“Indian SMBs are revolutionizing business practices by employing AI to enhance efficiency, adopting skill-oriented hiring to develop capabilities, and utilizing trusted digital ecosystems to broaden their market presence,” stated Kumaresh Pattabiraman, Country Manager for LinkedIn India.
In terms of AI adoption, businesses in Delhi (61%) and Pune (60%) focus on cost management, while those in Bengaluru (63%) prioritize operational efficiency, and Chennai (62%) emphasizes building a skilled talent pipeline.
Hiring trends among SMBs have shifted towards digital literacy and AI proficiency, with 63% prioritizing these skills. Additionally, 57% value problem-solving skills, and 50% consider data analysis more important than traditional qualifications.
Point of View
The findings from this report reflect the urgency for Indian SMBs to adapt to changing market dynamics. The focus on AI and digital literacy indicates a proactive approach in strengthening their competitive edge. This commitment to innovation could redefine the SMB landscape, positioning them for future success.
NationPress
13/11/2025
Frequently Asked Questions
What percentage of Indian SMBs are adopting AI?
A staggering 90% of Indian small and medium businesses are either investing in or planning to adopt AI.
Which cities in India are leading in AI adoption?
Cities like Chandigarh (100%), Jaipur (94%), and Ahmedabad (94%) are leading the way in AI adoption among SMBs.
What are the key benefits of AI for SMBs?
AI helps SMBs enhance operational efficiency, automate workflows, and strengthen analytics, crucial for maintaining competitiveness.
How are hiring priorities changing in Indian SMBs?
Hiring priorities have shifted towards digital literacy and AI fluency, with 63% of SMBs prioritizing these skills.
What does the future hold for SMBs in India?
With a strong focus on AI and digital transformation, Indian SMBs are poised for significant growth and innovation in the coming years.
