90% of Small Businesses in India Embrace AI, Led by Tier 2 Cities

90% of Small Businesses in India Embrace AI

The case of 90% of small businesses in India embrace AI is becoming a major trend, as a new report shows that nine out of ten SMBs are already using AI or planning to adopt it soon. This shift is happening across India, especially in fast-growing cities. Chandigarh leads with 100% of its SMBs investing in AI, while Jaipur and Ahmedabad follow at 94%. Because of this rapid adoption, experts believe many businesses will grow faster in the coming year.

Moreover, the report by LinkedIn, based on a YouGov survey, shows that SMBs are not depending only on hope. They are changing how they work by using digital tools, hiring skilled workers, and joining trusted online platforms. These steps help them stay relevant in a market that is changing very quickly.

The survey covered 1,027 SMB office holders from major cities. It found that 57% of businesses see AI and automation as essential for staying competitive. In addition, 54% think operational efficiency is necessary to maintain profits, and 51% believe digital transformation is key to survival.

Furthermore, almost all surveyed businesses use AI in different ways. About 92% automate workflows, 93% rely on AI for analytics, and more than 90% use it for hiring, marketing, and sales. This shows how deeply AI is becoming part of everyday business operations.

Kumaresh Pattabiraman, LinkedIn India Country Manager, said that SMBs are reimagining how business is built. He explained that AI drives efficiency, digital hiring builds strong teams, and trusted online platforms expand markets. His comments show how important this transformation has become.

There are also regional differences. In Delhi, 61% of SMBs use AI to manage costs. In Pune, 60% focus on cost control as well. Bengaluru leads in improving operational efficiency with 63% of SMBs adopting AI for this purpose. Chennai stands out for focusing on skill development, with 62% improving their workforce abilities.

Additionally, the hiring process is changing. About 63% of SMBs now prefer candidates with digital literacy and AI skills. Other important abilities include problem-solving at 57% and data analysis at 50%. This shows that modern skills are becoming more important than old traditional qualifications.

As AI grows across India, SMBs can improve their efficiency, strengthen their services, and compete better. Since SMBs contribute greatly to India’s GDP and provide millions of jobs, their success supports the entire economy. With smarter technology, businesses can find new opportunities and work more effectively.

Overall, the rise of AI shows a major shift in India’s business world. Because of this rapid change, experts believe 90% of small businesses in India embrace AI will continue shaping growth and innovation for years ahead.

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