Transforming Small Businesses 2025

Cluster action plan This plan provides a four-phase roadmap to guide the implementation of the IMPACT AI framework through a cluster-based approach (Figure 13). Four-phase action plan to increase MSMEs’ AI use FIGURE 13 Action point Action ownerPhase 0 Governing body and action planPhase 1 Infrastructure set-up and initial outreachPhase 2 AI capabilities and AI-readinessPhase 3 Supply and demand ecosystemPhase 4 Recognition and improvement Set up steering committee – Cluster AI Council Define cluster's AI objectives Industry body with support from academiaState MSME secretaryEstablish AI experience centre and AI sandbox MSME associationMSME associationLaunch AI transformation indexLaunch an AI marketplace platform MSME associationMSME associationRecognize SME AI pioneers Gather feedback and revise AI objectives Steering committeeConduct training and upskilling workshops Academia and industry bodiesFacilitate alternative funding models Centre / state MSME MinistryConduct outreach and initial workshops Academia and industry bodies1 3 5 7 9 10 2 4 6 8 Source: World Economic Forum Phase 0: Pre-launch activities and stakeholder alignment Objective: Lay the groundwork by forming governance structures and setting cluster AI goals 1 Set up a steering committee – Cluster AI Council –Identify representatives from MSME associations, government, industry, academia and solution providers –Formalize committee roles and responsibilities Lead: State MSME secretaryOutcomes: Steering committee established to guide AI adoption in the cluster 2 Define cluster AI objectives –Conduct baseline assessment of cluster challenges and AI needs in partnership with academia/MSME associations –Identify relevant AI use cases for the cluster and prioritize using impact-feasibility framework –Draft a high-level AI acceleration plan with success metrics (number of pilots completed, number of MSMEs reached, etc.) Lead: Industry body supported by academia Outcomes: High-level AI acceleration plan with clear success metrics Transforming Small Businesses: An AI Playbook for India’s SMEs 46