India Trails in Global AI Race: Only 15% of SMEs Embrace AI
India’s AI adoption remains low among SMEs, with only 15% leveraging the technology due to high costs, limited awareness, and skill shortages.
Low AI Adoption Among Indian SMEs
Despite the global shift toward AI-driven operations, Indian small and medium enterprises (SMEs) are slow to adopt the technology. According to a report by the Bangalore Chamber of Industry and Commerce (BCIC), only 15% of Indian SMEs currently use AI tools. Challenges such as high implementation costs, lack of technical skills, and fear of disruption are key factors holding back digital transformation.
Global Competition and Missed Opportunities
While countries like the US, China, and even smaller Asian economies are seeing rapid AI integration in business, Indian SMEs risk falling behind in competitiveness and efficiency. Experts warn that delayed adoption may reduce productivity, limit innovation, and affect long-term growth in an increasingly AI-driven global economy.
Need for Government and Industry Support
To close this AI gap, industry leaders are calling for stronger policy support, affordable AI solutions, and awareness programs tailored for SMEs. Government-backed incentives, training initiatives, and public-private partnerships can equip small businesses with the tools and confidence to leverage AI—ensuring they don’t miss out on the next wave of digital innovation.
