~AI is transforming MSMEs from digital adoption to intelligent growth, with strategy, skills, cybersecurity and effective AI integration becoming key to inclusive business growth.
Gandhinagar, Gujarat, Sep 15 (VNI): Artificial intelligence is set to transform India’s Micro, Small and Medium Enterprises (MSMEs) by taking them beyond basic digital adoption towards intelligent growth, National MSME Expert P.K. Jha has said. MSMEs account for around 90% of businesses worldwide, provide 60–70% of employment and contribute nearly 50% of global GDP, making their effective adoption of AI critical for inclusive economic growth.
AI adoption among SMEs is rising rapidly, but significant gaps remain between access to technology and its effective use. An OECD survey covering more than 2,000 SMEs across 12 countries found that 61% reported using at least one AI application, while 76% of AI-using SMEs remained at the beginner stage and only 3.6% were classified as AI champions. Nearly 44% reported little or no tangible benefit, highlighting that the key challenge is increasingly one of deployment, integration and business strategy rather than technology availability.
Different countries are adopting different approaches to help MSMEs achieve deeper AI integration. Singapore is focusing on enterprise adoption and AI-skilled workers, Germany on small AI models and specialised SME support, South Korea on manufacturing and small-merchant platforms, while China is promoting lightweight, scenario-based AI applications. India’s India AI Mission, with a budget of ₹10,372 crore, covers computing capacity, datasets, application development, future skills and startup financing, while initiatives such as PM Vishwakarma are bringing AI tools to traditional artisans for product photography, branding and customer communication.
Cybersecurity, however, remains a major concern as AI adoption expands. The OECD survey found that 22% of surveyed SMEs had experienced a digital security breach, while 14% had no cybersecurity measures and 32% had only minimal protection. For MSMEs, where resources are limited, a major cyberattack can seriously disrupt operations, making cybersecurity an essential component of AI-led digital transformation.
The decisive next step for MSMEs is therefore to move from simply accessing AI tools to strategically embedding them into core business operations. SMEs using generative AI in core activities are more likely to report tangible business benefits, while AI can also help address skill shortages. The transition from “AI beginner” to “AI champion” will ultimately determine whether artificial intelligence concentrates economic gains among larger enterprises or helps create broader and more inclusive growth for MSMEs. VNI NEWS, AI, Artificial Intelligence, MSMEs, India MSMEs, AI Adoption, Digital Transformation, Intelligent Growth, India AI Mission, SME Technology, Cybersecurity
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Focus Keywords: AI for MSMEs, AI transformation India, MSME digital transformation, intelligent growth, India AI Mission, AI adoption among SMEs, generative AI for MSMEs, MSME cybersecurity