87% small & medium biz say AI tools improve advertising: Amazon report

Amazon Ads report says AI is lowering barriers of cost and complexity for SMBs, with 75 per cent saying AI-enabled advertising has supported their business growth

Artificial Intelligence (AI) is assisting businesses to overcome traditional barriers of cost, complexity and limited resources, making sophisticated advertising accessible.

 

According to a report by Amazon Ads, nearly nine in 10 (87 per cent) small and medium-sized businesses (SMBs) say AI-powered advertising tools have enabled them to access advertising channels, audiences or formats that previously felt out of reach, including high-impact video formats such as streaming TV.

 

Beyond expanding access, AI is also helping businesses grow, with 75 per cent saying AI-enabled advertising has supported business growth, and 68 per cent say it has unlocked greater creativity in their advertising by virtue of simplified tools.

 

The report was commissioned by Amazon Ads and conducted by Opinium. The data was collected between April 7 and April 23.

Kapil Sharma, director of Amazon Ads India, said that the share of Amazon advertisers using AI-powered tools in India has grown by 77 per cent year-on-year with SMBs generating 62 per cent more ad creatives with those tools in Q1FY26 (April-June quarter) over last year.

 

AI is also lowering the cost of experimentation and providing faster feedback to SMBs, allowing them to pursue growth strategies, like expanding cross-border or launching new product lines. Three quarters (75 per cent) say AI-enabled advertising activity or strategy has supported business growth, 59 per cent say it has supported expansion into new countries and 58 per cent say it has given them the ability to launch new product categories.

 

Beyond access to new channels and the ability to expand globally, SMBs also see practical benefits across campaign delivery as 65 per cent say AI enables faster optimisation, 62 per cent say it helps them find customers more quickly to protect budget, and 55 per cent say it enables them to compete with bigger brands that have bigger budgets.

 

Looking ahead, Indian SMBs expect AI to become a bigger part of how they reach their business goals through advertising, with 92 per cent saying it will be important to their future competitiveness.