4 in 5 small businesses in India now use AI tools, report makes big revelations
&imwidth=600&imheight=450&format=webp&quality=medium "4 in 5 small businesses in India now use AI tools, report makes big revelations")
4 in 5 small businesses in India now use AI tools, report makes big revelations Photograph: (Credit: Generated by AI)
Nearly 80% of SMBs now use AI-enabled advertising tools, but cost, skills, and ecosystem complexity remain hurdles.
A recent report highlights how digital advertising has become one of the most effective accelerators of small business growth, driving visibility, efficiency, and measurable returns on a scale previously inaccessible to smaller enterprises. The study shows that India’s Small and Medium-sized Businesses (SMB) sector is undergoing a decisive shift, embracing data-driven marketing and diversifying across platforms and formats. It is the increase in adoption of AI to optimise campaigns and reduce inefficiencies.
Here's what data reveals
Findings reveal that SMBs are not only advertising more, they are advertising smarter. A majority use three to four platforms simultaneously, over 65% deploy multiple formats, and more than 90% actively monitor campaign performance using digital tools. As the digital marketplace grows more competitive, AI adoption has become nearly universal, with SMBs using intelligent tools for targeting, fraud detection, automation, and creative optimisation.
The study also highlights structural challenges that continue to restrain the full potential of SMBs. Limited budgets, absence of specialised talent, lack of IT infrastructure, and difficulty choosing the right mix of platforms and formats were cited as primary barriers. Over 70% of SMBs also expressed that the sheer variety of advertising options can be overwhelming, underscoring the need for simplified guidance and ecosystem support.
“India’s economy depends deeply on the vitality of its small businesses, and this report shows how digital advertising is becoming a key equaliser, allowing them to compete with larger players and participate more meaningfully in national and global markets. What is remarkable is not just the high adoption rate, but the tangible impact: from doubling revenues to expanding across India and even reaching export markets,”Sunita Mohanty, Managing Director, Primus Partners, speaking about the findings highlighted in the data.
Trending Stories
&im=FitAndFill=(700,400))
)
)
)
)
&im=FitAndFill=(700,400))
)
)
)
)
)
)
)
)
)
)
)
&im=FitAndFill=(700,400))
)
)
)
)
)
&im=FitAndFill=(700,400))
)
)
)
)
)
&im=FitAndFill=(700,400))
)
)
)
