AI Economic Growth: Big Opportunity for Small Businesses! 500 billion opportunity in MSME sector due to AI

• Technology that will be a game changer for India
• 500 billion dollar opportunity for MSMEs due to AI
• AI boosts productivity, credit and jobs

AI Economic Growth: Among India’s 64 million micro, small and medium enterprises (MSME) Adoption of artificial intelligence (AI) alone could create more than $500 billion in economic value. However, to realize this potential, the country will have to shift from an ‘adopt first’ mindset to an ‘invent first’ approach, a report said. The report titled ‘India’s Triple AI Imperative: Succeeding with AI in India’ was released by Boston Consulting Group (BCGX) and Federation of Indian Chambers of Commerce and Industry (FICCI).

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While India is one of the fastest growing AI markets in the world, a significant gap remains in terms of deep innovation and real value realization, the report said. BCGX is the technology creation, design and innovation arm of Boston Consulting Group (BCG). The report states, ‘India’s 64 million MSMEs have huge untapped opportunities. Adoption of AI in this sector could generate more than $500 billion in economic value by increasing productivity, reducing costs and providing credit.’ However, the report also revealed that barriers such as lack of digital infrastructure, lack of awareness and limited access to skilled talent still persist.

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India ranks among the top four countries globally in terms of AI readiness. FICCI Director General Jyoti Vij said the opportunity in AI for India is not just in scale but in inclusion. By supporting MSMME startups and the adoption of AI in the regional environment, the country can increase productivity, create quality jobs and enhance long-term socio-economic resilience. Taking into account the gap between interest and investment, the report says that roughly 44 percent of executives still invest less than 10 percent of their technology budgets in AI. The report predicts a major shift in operating models by 2026, where AI will have primary authority to perform certain tasks,