Embracing AI: A Guide for India’s MSMEs
Transforming Business with Technology
As artificial intelligence (AI) rapidly reshapes business landscapes, India’s micro, small, and medium enterprises (MSMEs) are presented with unprecedented opportunities. The key lies in how these businesses approach AI adoption. During the ET MSME Day 2025 webinar, Punit Thakkar, CEO of Shivaami, shared invaluable insights on how MSMEs can embark on their AI journeys, the tools to prioritize, and the mindset shifts essential for thriving in an AI-driven era.
Identifying Pain Points
Starting the AI Journey
According to Thakkar, the first step for any MSME is to pinpoint their pain points. This focus allows businesses to identify repetitive tasks that can be optimized through AI, ultimately leading to cost savings. “MSMEs should start by aligning AI solutions with their business objectives,” he emphasizes, whether that means improving efficiency or scaling operations.
Recommended AI Tools for Growth
Essential Tools for MSMEs
Drawing from his experience with over 20,000 SMEs, Thakkar highlights the most beneficial AI tools that MSMEs should leverage:
Google Workspace and Microsoft Copilot: Both offer built-in AI capabilities that streamline communication, document creation, and collaboration.
Canva: This tool allows users to create stunning visuals within minutes, reducing dependency on graphic designers and expediting marketing efforts.
Suno: Ideal for enhancing workplace ambiance, this tool generates music based on simple prompts, contributing to increased productivity.
- ChatGPT and Google Gemini: These tools assist in analyzing CRM data, offering a spectrum of options for enhancing operational efficiency.
Strategies for AI Integration
Optimizing Business Processes
Thakkar notes that many MSMEs tend to focus on cutting costs rather than recognizing the opportunities presented by AI. “AI opens the door for bigger and better prospects,” he states. For instance, implementing automated responses in WhatsApp can significantly enhance customer service without considerable investment.
Low-Hanging Fruit for Adoption
MSMEs can easily adopt various AI solutions to streamline operations, such as:
- Automated invoicing systems: These can generate thousands of invoices daily with minimal human oversight.
- AI chatbots: Useful for answering common customer queries, saving valuable time for business owners.
The Next Frontier: AI in MSMEs
Embracing the AI Revolution
Thakkar believes we are on the brink of an AI revolution. Historical data shows that communication platforms like ChatGPT have proliferated faster than even Google, indicating the rapid evolution of technology. “India is leading this frontier,” he says, urging MSMEs to adjust their mindset to prioritize AI investments.
Addressing Skills Gaps
Despite the potential benefits, Thakkar acknowledges a significant challenge: the skills gap in IT and AI expertise. This divide could leave non-AI-enabled companies trailing behind their competitors in the future.
Conclusion
The rapid adoption of AI offers immense potential for India’s MSMEs. By identifying pain points and leveraging practical tools, these enterprises can enhance operational efficiencies and position themselves for future success. The key is to embrace a mindset focused on opportunities, not just costs, while navigating the evolving landscape of AI.
FAQs
1. What is the first step for MSMEs looking to adopt AI?
The first step is to identify specific pain points within the business that AI can address, allowing for a tailored approach to technology adoption.
2. Which AI tools are recommended for MSMEs?
Recommended tools include Google Workspace, Microsoft Copilot, Canva, Suno, ChatGPT, and Google Gemini for various operational needs.
3. How do cost considerations impact AI adoption for MSMEs?
Many MSMEs focus heavily on costs rather than opportunities, which can hinder their ability to leverage AI for growth.
4. Can simple AI solutions really make a difference for small businesses?
Yes, simple AI solutions like automated invoicing and chatbots can significantly enhance efficiency and customer service without substantial investment.
5. What is the biggest challenge facing MSMEs in the AI landscape?
The skills gap is a critical challenge, as many business owners may lack the necessary IT or AI knowledge to successfully implement these technologies.
