Transforming Small Businesses 2025

AI agent-enabled quality management FIGURE 11 Physical inspection agent Uses computer vision system for physical inspectionsParameter monitoring agent Continuously monitors process parameters and flags any abnormalitiesRaw material processingProduction processPost-production inspection Test report – chemicals laboratoryTest report – microbiology laboratory Test result inspection agent Monitors test results data received from chemical testing and microbiology lab Predictive maintenance agent Communicates with physical inspection, parameter monitor and test result inspection agent to analyse machine failure and schedule downtimeA2A communication: Correlates test results with parameters, adjusts parameters for next batch Source: World Economic Forum3 AI agent application: Quality management for SMEs Quality management is crucial for Indian SMEs to stay competitive in the domestic and international markets. Robust quality management practices in Indian SMEs can increase product reliability, operational efficiency and customer satisfaction, thereby improving profitability. Quality management is especially crucial in sectors such as pharmaceuticals – where evolving regulations mandate quality management for exports. The Indian government, recognizing the importance of this, has introduced multiple schemes to enable robust quality management in MSME organizations. The Quality Management Standards (QMS) and Quality Technology Tools (QTT) schemes of the Indian government are helping MSMEs adopt standards and tools to enhance product reliability. In addition, the Zero Defect Zero Effect (ZED) certification under the “Make in India” initiative encourages MSMEs to meet international quality benchmarks while minimizing the environmental impact. Together, these signify the government’s commitment to improving quality management in MSMEs and making them more competitive. Managing quality in SMEs currently relies on manual checks – prone to error and inconsistencies. AI can dehumanize the process of quality management, making it more consistent and reliable. Data feeds from AI-based systems can be monitored continuously in contrast to periodic manual inspections. AI models can also analyse quality management data, identify patterns and provide recommendations for predictive maintenance to reduce the defect rate. AI-based quality management in SMEs can therefore free up human resources, improve product reliability and increase export potential. An illustrative AI agent-enabled quality management process is presented in Figure 11. Transforming Small Businesses: An AI Playbook for India’s SMEs 37