Transforming Small Businesses 2025

Images: Getty Images Disclaimer This document is published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders. © 2025 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.Contents Foreword 3 Executive summary 4 Introduction 6 1 Why do we need this playbook? 7 1.1 AI can generate significant value for the MSME ecosystem 8 1.2 MSMEs in India differ on multiple dimensions 10 1.3 SMEs operate at different stages of digital maturity 13 1.4 SMEs need a structured approach to AI adoption 13 1.5 The multistakeholder methodology of the playbook 14 2 What are the challenges to AI adoption? 15 2.1 Stakeholder perspectives 16 2.2 Key challenges to AI adoption identified 19 from stakeholder perspectives 3 How to accelerate the adoption of AI in SMEs? 23 3.1 Exploring promising AI applications for SMEs 24 3.2 Framework to accelerate AI adoption 38 Conclusion and call to action 45 Contributors 49 Endnotes 51 Transforming Small Businesses: An AI Playbook for India’s SMEs 2