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Thursday November 13, 2025 , 3 min Read
Nine out of ten (95.6%) small and medium businesses (SMBs) in India are already investing in or are planning to invest in artificial intelligence (AI) adoption, says a study by professional networking platform LinkedIn.
About 92% of SMB leaders expect business growth in the next year, indicating that the sector is rebuilding itself with smarter technology, skilled teams, and digital platforms.
The report says that AI is no longer a buzzword, but the new baseline for growth. 57% of SMBs view AI and automation as essential to remain competitive, while 54% believe that operational efficiency is the key to protect margins. And 51% think digital transformation is crucial for survival.
Different geographies seem to have distinct approaches to AI adoption and usage. SMBs in Delhi (61%) and Pune (60%) are adopting AI to cut costs, while those in Bengaluru (63%) are using AI to focus on efficiency. Chennai (62%) is investing in AI to build more skilled teams. Meanwhile, fast-growing cities like Chandigarh (100%), Jaipur (94%), and Ahmedabad (94%) are outpacing metros in AI adoption and readiness.
“Indian SMBs are moving from ‘startup hustle’ to ‘strategic muscle’. Entrepreneurs are reimagining how business is built, using AI to drive efficiency and skills-first hiring, and build capability and trusted digital ecosystems to expand their market footprint,” said Kumaresh Pattabiraman, Country Manager at LinkedIn India.
AI has become an integral part of how SMBs hire, market and grow. Close to 92% of those surveyed said they use AI to automate their workflows, 93% use it to strengthen analytics and business intelligence, and over 90% have been using AI to streamline hiring, marketing, and sales.
The study also reveals hiring trends within SMBs with 63% valuing digital literacy and AI fluency and 57% prioritising problem-solving. Half of the surveyed businesses are focusing on data analysis over traditional qualifications when it comes to hiring new employees. 65% of SMBs already use AI hiring tools, citing better assessments and higher engagement as the key drivers for the same.
Marketing and sales are becoming smarter with AI. About 76% of SMBs use AI marketing tools, and many are spending up to half their budgets on them. 74% use AI in sales for better targeting and automation.
Even as they adopt AI at speed, SMBs are careful about which platforms they trust. 95% place their bet on credibility, over cost or convenience. Their top considerations are data security (83%), seamless integration (79%), and clarity on ROI (75%).
However, while AI creates a level-playing field in terms of access to tools and insights, the capital needed to build and scale AI systems remains a challenge for smaller firms. Many SMBs continue to depend on affordable, off-the-shelf AI solutions rather than developing in-house capabilities, highlighting the need for easier financing, shared infrastructure, and ecosystem support to sustain the AI momentum.
Edited by Swetha Kannan
