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MSMEs struggle to reap the benefits of the AI revolution as 72% continue to demand AI training programmes for their workforce, according to a report by NASSCOM. 

NASSCOM, in support of Meta, launched a white paper titled, ‘Empowering India’s Growth: Unlocking AI’s Potential for Tech-Enabled MSMEs’ that focuses on challenges and opportunities faced by tech MSMEs in AI adoption. 

Nearly half of respondents reinforce AI’s potential in content creation and marketing, while 46% believe its potential in customer engagement. More than 65% of respondents are looking to tap into AI’s potential in developing new products and services. 

“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 maximise its AI dividends,” said Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at NASSCOM. 

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Majority of Indian MSMEs plan to increase their cloud spend in 2025: Report

According to the report, 94% of tech MSMEs acknowledge AI’s ability to drive business growth yet nearly 65% of tech MSMEs struggle with AI adoption due to limited awareness about available tools and resources and 59% miss out on it due to budgetary constraints. 

“Despite the optimism surrounding AI’s potential for business growth, tech-enabled MSMEs face several

challenges in realising these benefits. These challenges span from resource constraints and limited access

to specialized AI talent to concerns about data privacy and security,” cited the report. 

The report recommends an MSME-first approach which would make AI technologies more democratically accessible. There is also a need for tailored use cases demonstrating AI’s benefits across specific industries.