MSME Day 2024: A white paper on artificial intelligence (AI) for MSMEs by Nasscom and supported by Meta on Thursday noted a strong belief in the potential of AI among tech-enabled MSMEs. The white paper Empowering India’s Growth: Unlocking AI’s Potential for Tech-Enabled MSMEs said 94 per cent of MSMEs acknowledged AI’s ability to drive business growth while 87 per cent said they were confident in AI’s capacity to improve overall business productivity.
The white paper was based on inputs from over 300 MSMEs earlier this year in Gurugram, Bengaluru, Pune, Mumbai and Hyderabad on AI awareness and capacity building for MSMEs.
Speaking on the white paper, Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom said MSMEs are at a critical point in today’s fast-evolving tech landscape.
“Integrating AI offers them a unique chance for unprecedented growth, increased productivity, and sustainable innovation. Ecosystem collaboration coupled with access to user-friendly tools and resources, is essential for tech-enabled MSMEs to harness AI’s full potential and for India to maximize its AI dividends.”
Highlighting key areas where AI can catalyze growth for MSMEs, the white paper noted that 48 per cent of respondents support AI’s potential in content creation and marketing, 46 per cent in customer engagement, and 68 per cent in developing new products and services.
“As the backbone of the Indian economy, empowering MSMEs with cutting-edge business solutions is pivotal for the growth of the country. With its massive developer base and the third-largest startup ecosystem in the world, India is going to be a driving force in the global AI revolution,” said Sandhya Devanathan, Vice President (India), Meta.
The white paper also underscored the challenges faced by technology-enabled MSMEs in navigating the benefits of leveraging AI for sustainable business expansion and growth.
For instance, 65 per cent of such tech MSMEs noted that they are struggling due to limited awareness about available tools and resources while 72 per cent stressed on the necessity for AI training programs in facilitating adoption.
Moreover, 59 per cent cited budgetary limitations as a barrier to investing in necessary tools and resources while 91 per cent called for more inclusive and affordable AI solutions to level the playing field for smaller businesses. 45 per cent also highlighted the need for tailored use cases.
Tech MSMEs are referred to in the white paper as units that are into technology-related business or are leveraging technology to build and grow their business.
The white paper suggested an “MSME-first approach to help them reap the AI dividend.” This included required actions such as creating hyperlocal accelerator programs for tech-enabled MSMEs, financial support including grants and subsidies for technical training, skill development, peer learning programs and access to tools and resources.
