Indian SMBs Lead in AI Adoption, but Cost and Consistency Remain Key Challenges

Indian small and medium-sized businesses (SMBs) are adopting artificial intelligence (AI) faster than large enterprises, according to Salesforce. The company's Small and Medium Business Trends Report found that 78% of Indian SMBs surveyed were either using or experimenting with AI. Among those who have implemented AI, 95% reported more efficient operations, while 97% said the technology had improved productivity, revenue, or customer experience.

According to Arun Kumar Parameswaran, Executive Vice President and Managing Director of Sales and Distribution at Salesforce's South Asia division, smaller businesses can move faster with AI because they have fewer layers of decision-making and less legacy technology to contend with. 'The fastest deployments we see for AI are in SMBs,' he said. 'For the simple reason that you don’t have legacy.' The cost of deploying AI is a significant hurdle for businesses looking to scale, as it includes not just software licenses but also the costs of personnel who will operate and maintain the system.

Parameswaran noted that Indian businesses are increasingly using AI to drive revenue and improve customer experience, rather than focusing solely on cutting costs. He also highlighted the importance of outcome-based pricing, where customers pay for a defined business result rather than the volume of tokens consumed by an AI model. However, he warned that ensuring consistent results from generative AI models can be challenging.