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India’s small and medium businesses (SMBs) are entering their most confident decade yet. New LinkedIn research finds that 9 in 10 SMBs (95.6%) are already investing in or planning AI adoption, indicating how technology has moved from experiment to infrastructure. At the same time 92% of SMB decision-makers expect business growth in the next 12 months – signalling a sector that’s not just hopeful but rebuilding around smarter systems, skilled talent, and trusted digital platforms.
Behind their confidence lies urgency. AI is no longer a buzzword, but the new baseline for growth. The research shows that 57% of SMBs view AI and automation as essential to stay competitive, 54% cite operational efficiency as key to protecting margins, and 51% say digital transformation is critical to survival.
Across India, different regions are evolving in distinct ways. SMBs in Delhi (61%) and Pune (60%) lead AI adoption to manage costs, those in Bengaluru (63%) are focusing on operational efficiency, and those in Chennai (62%) are concentrating on building a skilled talent pipeline. Meanwhile, SMBs in some of the fastest growing cities in India such as Chandigarh (100%), Jaipur (94%), and Ahmedabad (94%) are setting new benchmarks for business confidence and technology adoption, often pulling ahead of larger metros in AI readiness and momentum.
Kumaresh Pattabiraman, Country Manager, LinkedIn India said, “Indian SMBs are moving from ‘startup hustle’ to ‘strategic muscle’. Entrepreneurs are reimagining how business is built, using AI to drive efficiency, skills-first hiring to build capability, and trusted digital ecosystems to expand their market footprint. At LinkedIn, our focus is simple – give every entrepreneur, in metro or non-metro cities, the right network, the right clients, and the right talent, all in one place, so they can grow with clarity and confidence in the AI economy.”
AI has become the engine behind how SMB’s hire, market and grow. Nearly all surveyed businesses say they use it to automate workflows (92%), strengthen analytics and business intelligence (93%), and streamline hiring, marketing, and sales (over 90%).
Hiring models are being rebuilt around capability, not credentials. SMBs now value digital literacy and AI fluency (63%), problem-solving (57%), and data analysis (50%) over traditional qualifications. To find this talent, 65% already use AI hiring tools, citing better assessments and higher engagement.
Marketing and sales, too, are becoming intelligence-driven. 76% of SMBs use AI marketing tools, with three-quarters investing up to half their budgets in them. 74% now rely on AI in sales for sharper targeting and automated follow-ups, allowing them to operate with the sophistication of larger enterprises.
Rahul Karthikeyan, Chief Marketing Officer, Scaler said, “Scaler’s recent campaigns have seen strong performance through precise audience targeting and data-driven optimisation. Sponsored Content, especially vertical formats, delivered a 20% higher lead-to-payment conversion than static formats on other channels. In August alone, LinkedIn generated about 70–80 new payments with a return on spend (RoS) of 2.2. We plan to further scale this high-impact channel while maintaining cost-per-sale efficiency.”
Even as they adopt AI at speed, SMBs are discerning about where they place their trust. 95% say platform credibility matters more than cost or convenience. Their top considerations are data security (83%), seamless integration (79%), and clarity on ROI (75%). Together, these shifts signal the rise of a smarter, more resilient SMB ecosystem – one that is not just adapting to the AI era but actively shaping it.
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