Transforming Small Businesses 2025

2.1 Stakeholder perspectives SME stakeholders’ perspectives about AI are compelling Through discussions with those at the forefront of Indian SMEs, the report team uncovered a narrative about AI that is as much about aspiration as it is about adoption. Interviews with the ecosystem’s stakeholders provided insights that helped develop a realistic understanding of the relevance and scope of this technology. Extensive consultations with SME owners and entrepreneurs, start-ups, industry representatives, shopfloor workers and government bodies painted a picture of business owners juggling razor- thin margins while eyeing digital transformation; workers seeing both threat and opportunity in AI’s emergence; and industry veterans advocating for an ecosystem that nurtures rather than just enables. These perspectives, sometimes conflicting but always illuminating, offer crucial insights into the challenges and opportunities that AI poses for SMEs. Word map of SME stakeholders’ concerns and needs FIGURE 4 Cost-effective AI solutions Government support Peer networksLack of foundational digital readiness Knowledge-sharing India-specific solutions Worker training Risk management MSME collaboration AI marketplaceSuccess stories Expert guidance Cluster-based adoptionImplementation support AI for expor ts Industry support Job security Source: World Economic Forum Perspectives from SME owners and entrepreneurs Don’t sell me AI – show me my path to value I want AI, but I struggle with a lot of questions. What use cases would be the most beneficial for me? How ready am I? Who can assess this for me? Where are the appropriate solutions available? Who are the right partners for implementation? We need AI that plays by my margins because value is what keeps my lights on We always have to maintain a delicate balance between keeping costs low and ensuring the quality of the product. The cost of AI is a huge deterrent. Most of the AI solutions I have seen are designed for large enterprises and will be quite expensive for me. Custom AI solutions for small manufacturers like mine seem out of reach.Without guidance from experts, it is difficult to see a clear path forward Over the last few years, we have done what we could to reduce our production times. We are being told that incorporating AI in our operations could help us tap into the remaining gains that are to be made on the productivity front. But we cannot do this by ourselves. We need some guidance from experts who can visit our factory and tell us exactly which processes can benefit from using AI and how. Government needs to be an ecosystem curator, not just a subsidy provider We want the government to be an enabler and facilitator. We would like to see the government establish an AI platform that could help us get access to AI solution providers, equipment vendors and available subsidies, thereby facilitating knowledge- sharing. Such a platform must also include tools to evaluate effectiveness of solutions and must also integrate [original equipment manufacturer] OEM–supplier networks. Transforming Small Businesses: An AI Playbook for India’s SMEs 16