9 in 10 Indian SMBs investing in or planning AI adoption: LinkedIn study

A new LinkedIn study shows AI has shifted from experiment to essential for SMBs, with businesses across metros and smaller cities using automation, analytics, and skills-first hiring to fuel growth

A new LinkedIn research finds that 9 in 10 small and medium businesses (SMBs) (95.6 per cent) are investing in or planning AI adoption, indicating how technology has moved from experiment to infrastructure. At the same time 92 per cent of SMB decision-makers expect business growth in the next 12 months — signalling a sector that is not just hopeful but rebuilding around smarter systems, skilled talent, and trusted digital platforms.

 

Behind their confidence lies urgency. The research shows that 57 per cent of SMBs view AI and automation as essential to stay competitive, 54 per cent cite operational efficiency as key to protecting margins, and 51 per cent say digital transformation is critical to survival.

 

Across India, different regions are evolving in distinct ways. SMBs in Delhi (61 per cent) and Pune (60 per cent) lead AI adoption to manage costs, those in Bengaluru (63 per cent) are focusing on operational efficiency, and those in Chennai (62 per cent) are concentrating on building a skilled talent pipeline. Meanwhile, SMBs in some of the fastest growing cities in India such as Chandigarh (100 per cent), Jaipur (94 per cent), and Ahmedabad (94 per cent) 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.”

 

How are SMBs using AI to automate, analyse, and scale? 

AI has become the engine behind how SMBs hire, market, and grow. Nearly all surveyed businesses say they use it to automate workflows (92 per cent), strengthen analytics and business intelligence (93 per cent), and streamline hiring, marketing, and sales (over 90 per cent).

 

Marketing and sales, too, are becoming intelligence-driven. Seventy-six per cent of SMBs use AI marketing tools, with three-quarters investing up to half their budgets in them. Seventy-four per cent now rely on AI in sales for sharper targeting and automated follow-ups, allowing them to operate with the sophistication of larger enterprises.

 

What factors drive trust as SMBs scale AI adoption? 

Even as they adopt AI at speed, SMBs are discerning about where they place their trust. Ninety-five per cent say platform credibility matters more than cost or convenience. Their top considerations are data security (83 per cent), seamless integration (79 per cent), and clarity on return on investment (75 per cent). 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.