- Published on June 27, 2025
- In AI Features
Why AI Is Struggling to Charm Its Toughest Customer — Indian MSMEs
India’s MSMEs face financial, skill, and regulatory challenges in adopting AI. Affordable, customised, and cloud-based solutions offer a hopeful path forward.
- By C P Balasubramanyam
India’s micro, small, and medium enterprises are ready to adopt AI, but the road ahead is a mix of promise and challenges. The government’s recent report on ‘Enhancing MSMEs Competitiveness in India’ sets the stage, pointing out that while artificial intelligence holds immense promise for these businesses, adoption remains a challenge.
Many enterprises, the report notes, are still unfamiliar with India’s evolving data protection laws and face uncertainty about compliance when integrating AI into their operations.
“Government-led awareness campaigns and simplified guidelines on data protection can encourage responsible AI use and reduce the risk of non-compliance,” the report recommends, underscoring the urgent need for clear, accessible information.
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C P Balasubramanyam
Bala is a journalist covering Indian tech companies and startups from Bengaluru.
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