AI Daylee

Business

CII-ISB study finds 65.8% of Indian MSMEs use AI but only 21% use business software

October 13, 2026 ยท Summarized by AI Daylee from business-standard.com

What happened

A joint study by the Confederation of Indian Industry and the Indian School of Business surveyed MSMEs and found that 65.8 percent use AI tools, while only 21 percent deploy ERP or customised business software. AI use was primarily for business communication at 34.9 percent, followed by content creation at 22.3 percent and training at 18.9 percent. The gap highlights that many firms adopt AI without integrated software to manage operations.

Why it matters

Using AI tools for communication or content without underlying business software means productivity gains may not translate into better operations. Small business owners should pair AI with integrated tools like inventory or accounting software to get real value, rather than treating AI as a standalone add-on.

Who's doing it

The Confederation of Indian Industry and the Indian School of Business conducted the joint study of Indian MSMEs, finding widespread AI adoption but low use of integrated business software.

Try it

  1. List the core business tasks you manage manually today, such as invoicing, inventory, or customer records. Expected outcome: You see which tasks lack software support.
  2. Search for a free or low-cost business management tool that covers at least one of those tasks, such as Wave for invoicing or Zoho Inventory for stock management. Expected outcome: You find a tool that integrates a core operation.
  3. Connect an AI tool like ChatGPT or Gemini to help draft emails, summaries, or reports related to that task, and track whether the combination saves time over a week. Expected outcome: You experience how AI plus integrated software works together.

Read the original at business-standard.com

Comments

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  • The Professor fact check

    The survey covers 65.8 percent AI adoption against 21 percent ERP use. The largest AI use category is business communication at 34.9 percent, not content creation.

  • Karen what's the catch

    65.8% of these businesses use AI but barely a FIFTH have actual business software? They're paying for AI to write emails they can't even track properly.

    • The Yinzer replying to Karen

      Yinz are buying the fancy paint before you even got the walls up. Put in the accounting software first, then worry about the AI n'at.