The AI Moment for Indian SMBs
Inside the grassroots of AI revolution, reshaping how Indian SMBs grow.
In a bustling market in Ajmer, a young fruit vendor’s son glances at his father’s smartphone. He is watching how he can create an app like Zepto to sell his father’s vegetables in a bigger area. This isn’t a tech conference in Bengaluru – it’s a snapshot of the new reality for small business owners across India.
Citing industry surveys, nearly 8 in 10 Indian small and medium businesses (SMBs) are experimenting with AI today, and 93% of those report higher revenue growth. Common AI uses include automated chatbots, marketing campaign planning, and content generation. Yet many entrepreneurs still worry.
In fact, 41% of SMB leaders fear being “left behind” by AI, and 60% say keeping pace with technology is challenging. These figures explain why we’ve launched this newsletter: AI isn’t just hype; it’s practical. If you own a small shop or startup, you need both awareness and action now.
The AI Moment in India
India is living through an AI moment. With tools like ChatGPT (a popular AI chatbot) entering the mainstream, our country’s tech community is eager to apply these tools in business.
A recent Deloitte report found over 80% of Indian firms actively exploring “agentic” AI (autonomous AI agents).
Even WhatsApp, used by more than 80% of Indian SMBs, is adding AI-powered ad-makers and chat assistants to help local businesses. In plain terms, this means every shop owner can access AI via familiar apps, not just software engineers.
Still, readiness varies. Cisco’s AI Readiness Index shows that only about 26% of Indian organisations feel fully prepared to use AI. Often, SMBs have the strategy and talent but lack clean data or infrastructure. Imagine an AI Readiness Curve: on the left, a new user has almost no AI; on the right, a mature user has AI integrated into workflows. Most Indian SMBs are at the lower-middle of the curve – eager to climb but cautious. The good news: you don’t need to jump to the peak at once. Start by identifying one clear need (like answering FAQs, generating offers, forecasting demand) and test an AI tool for it. For example, a small language school in Pune might use a WhatsApp bot to schedule classes, while a cafe might try Google’s AI in Sheets to analyse sales data. The keys are clarity and iteration.
Globally, technology giants are also lowering barriers. Google’s Gemini AI is being built into Workspace (Gmail, Docs, etc.) so even emails and spreadsheets can give AI suggestions. Microsoft’s Copilot does similar on Office. And homegrown efforts – like the Google–NSDC Skilling India programs – are helping SMB owners learn basic AI.
In short, Indian SMBs have a unique chance to ride the same AI wave as large enterprises, but at a grassroots pace. The time to engage is now, before others in your market get too far ahead.
Stories from the Ground
Here are concrete stories of Indian small businesses using AI. These aren’t big tech companies – they’re local ventures solving real problems:
Surat’s Herbal Innovators (Avimee Herbal, Gujarat)
Raghubir and Shivshankari Choudhary (in their late 70s) run Avimee Herbal, famous for an Ayurvedic hair oil. They struggled with marketing and content creation. Then a consultant showed them generative AI. Now Avimee uses ChatGPT (an AI chatbot) to draft catchy Instagram reels scripts in seconds, saving hours of effort. Another tool auto-generates product posters in Hindi. They report spending far less time on content planning. Press reports note Avimee as one of the Indian SMBs tapping AI to simplify tasks.
Chennai’s Ayurvedic Startup (Amrutam, Tamil Nadu)
Dr. Swetha Ganesan founded Amrutam, a skincare brand. On a tight budget, she wanted to reach more customers. She began using an AI email assistant: input product features and a brief target profile, and the AI suggests draft emails and ad copy. Dr. Swetha then personalises them. She started getting more positive responses from local retailers and wellness influencers. Amrutam’s team also uses an AI graphics tool (like Canva AI) to quickly create social media ads in Tamil and English. Like Avimee, their story was featured because Amrutam joined the wave of SMBs using AI-powered solutions.
Local Retail and Services (Hypothetical Example)
Consider Mohan, who runs a stationery store in Jaipur. He uses WhatsApp Business for orders. Recently, he tried a WhatsApp chatbot builder: by training it on his FAQs, customers can now text the bot and get instant information on stock and opening hours. Mohan also used an AI video creator (with voiceover) to promote back-to-school offers in Hindi. Within weeks, he noticed two customers mentioned they found his stall through a WhatsApp ad. On a busy market afternoon, that’s a real gain. These small wins add up – and they came from tools that cost little or nothing to try.
Telangana Farmer Cooperative (Digital Green).
The benefits of AI are not just for shops. Outside Khammam, Telangana, a millet farmer named Harish B. was part of an NGO project. It began by showing farmers local crop-care videos via mobile. During COVID-19, they built a simple WhatsApp bot linking farmers to those tips. In 2023, they went further: they trained a language AI on those local farming videos and data so the system could answer questions. The chatbot now factors in local weather, soil, and market prices when giving advice. Farmers “don’t want generic ChatGPT answers”, notes the NGO CEO – they need specific, timely guidance. In the pilot, this AI-plus-video combo helped farmers boost yields by 21% and selling prices by 8% over 18 months. That’s the power of combining AI with local knowledge.
These stories reveal a pattern: start with a real problem, use a simple AI tool, measure the impact. You don’t need technical expertise – many of today’s AI apps have chat windows or phones as interfaces. Think of AI as a new toolkit. It’s practical, not magical.
Tools and Tips: Getting Started
What can you use right now? Here are concrete ideas:
Chatbots and Virtual Assistants: You already chat on WhatsApp. Now, set up a WhatsApp or web chatbot for common tasks. Platforms like Freshdesk, Haptik or Chatbot.com let you build simple FAQ bots. For example, a garment seller could use a chatbot to confirm orders after hours, without extra labour.
Automated Accounting & Invoicing: Managing invoices and GST is tedious. AI-driven apps like Vyapar or Zoho Books can automate expense tracking, invoice generation, and tax calculations. After a few entries, they even auto-fill details (e.g. customer info). For instance, a kirana store owner reported much faster bookkeeping after switching to Vyapar. These tools have Indian-language support and built-in tax rules, making compliance easier.
Content and Marketing AI: Use AI to create ads and social posts. Text generators (ChatGPT, Google Bard) can draft taglines and product descriptions in Hindi, Tamil, etc. Image tools (Canva AI, DALL·E) can design posters or product images. Voice tools (Murf.ai) can generate simple product jingles. The trick: input your basic idea and refine the AI output. Even free tiers of these tools can yield polished results.
No-Code Custom Apps: Platforms like Google AppSheet or Microsoft Power Apps let you build simple apps without coding. For example, a physiotherapy clinic created a patient-scheduling app on a smartphone interface. A tea shop could similarly make an ordering app in a day, with drag-and-drop tools.
Localisation: Use AI in your local language. OpenAI and others now support Indian languages. Prompt the tool in your preferred tongue, and it will respond likewise. This way, the output (ads, responses) speaks directly to your customers.
Combining Tech: Follow the lead of the Telangana project: combine AI with other tech like data sensors or market SMS. If you have any sales data in Excel, try feeding it to Google’s AI Sheets feature to highlight trends. Even something like an IoT moisture sensor in farming, plus an AI phone alert, can be a game-changer.
Steps to try today:
Pick one task: Is it customer service? Inventory? Marketing? Zero in.
Choose a simple tool: For example, ask ChatGPT to draft a welcome SMS, or use a free WhatsApp bot maker for FAQs. There are many online tutorials (even a 30-minute video) for beginners.
Experiment for a week: Use the AI tool in a real situation. Don’t worry about perfection.
Review results: Did more customers call? Save time? Even small improvements are wins. Write down what changed.
Most of these tools have free plans. Try ChatGPT (free) with a few queries. Even Google Sheets’ AI assistant (in Workspace) is available if you have Gmail. Keep it simple: think of AI as a helper that does the drafting, while you do the final touch.
The Road Ahead
The bigger picture: AI is not a fad. Tech leaders say we’re only seeing the iceberg’s tip – most innovation (and disruption) is yet to come. For Indian SMBs, this means urgency. If half the shops on your street start answering on WhatsApp or auto-scheduling orders, that’s the new normal. Early adopters will attract more customers and save costs, while laggards risk being squeezed out.
Proceed wisely. AI tools can err (they might give wrong tax advice or odd translations), so always review outputs. Data privacy is important, too. A recent survey found 91% of Indian businesses would rather use AI tech from trusted vendors.
We echo that: stick with reputable apps at first (e.g. well-known ones mentioned above) until you’re comfortable.
Government and industry recognise this shift. Initiatives like Google-KPMG SME surveys and NASSCOM reports encourage digitization of MSMEs. The evolving Digital India infrastructure (like upcoming Agri-stack data platforms) will enable more AI solutions. We see signs that things are aligning: projects like the Telangana one are getting state support, and programs like “AI for All” (from NITI Aayog) are aiming to equip even village entrepreneurs. The goal is that no one misses the AI train.
Most of all, community matters. Success stories spread fast by word of mouth. We envision a network of SMB owners sharing experiences. Did a chatbot double your leads? Tell others. We’ll feature such stories (anonymously if you prefer) in future issues. We also plan meetups and forums so you can learn from peers.
The power of “my friend’s neighbour did this and it worked” is huge in small-business India.
Join the AI Movement: Take Action
This newsletter is the beginning of a conversation. Here’s your call to action:
Try an AI tool this week. Sign up for ChatGPT or Google Gemini. Ask it something useful (e.g. “Write a thank-you message for customers in Hindi”). You’ll instantly see how it can help.
Attend a local workshop or online webinar. Tech hubs and industry groups often hold free “AI for SMB” events. Even a one-hour session or YouTube tutorial will make concepts concrete.
Share your experiences. Talk to fellow shopkeepers. Post in your local business group (even WhatsApp) about what’s working or not. Send us a note on your experiment – we may feature your story next month (with permission).
Niti Chami of Stanford University notes that technology succeeds when local entrepreneurs actively use and supervise it.
That is exactly how we must treat AI: as a toolkit to be learned, not a mystery to fear.
Minutes by Mactriq will keep the focus practical and human. We promise no fluff, only actionable guidance. In upcoming issues, expect step-by-step how-tos (for example, “set up a WhatsApp sales bot in 10 minutes”) and more grassroots case studies.
Make no mistake: AI is here, and it’s not going away. But it’s not a storm to weather – it’s a tool to wield. One who masters it will grow the fastest tomorrow. Let’s seize this moment together and ensure Indian SMBs lead the AI wave.
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