With the rapid expansion of AI dominance across the world, India is emerging as the “global destination” for AI adoption and a data center hub. To cope with this speed of evolution, India’s Micro, Small, and Medium Enterprises (MSMEs), which are also considered the “Backbone of India,” are accelerating to adapt to the new AI world. A recent publication shared by the VI Business MSME Growth Insights Study 2026 surveyed to examine the current AI stance of the MSMEs.

Vi Business ReadyForNext Report: AI Set to Transform India’s MSME Sector

The VI Business MSME Growth Insights Study 2026 published a report showing the AI adoption among the MSME companies, where around 2.5 lakh small and medium businesses spread across 26 sectors were evaluated.

As per the report, 57% of enterprises/businesses see AI as a “core tool” which can help in enhancing their overall operations on day to day and help in taking their business to different heights.

Around 25% of enterprises have already started using AI and integrated an AI system into their workflows to help in day-to-day operations efficiency, including automating customer service, predicting demand, or optimizing logistics.

Also Read: Rising Prices Could Lower Consumption for Tech Brands

The report also shares insights on India’s Digital Maturity Index, which is a parameter to measure how effectively MSMEs use digital technologies to drive value, efficiency, and growth. As per the survey, the Digital Maturity Index has climbed to 60.8, which is around 2.8 points jump from 50.0 points in 2025.

The study also shares the key highlights around Cybersecurity adoption, businesses’ adoption of AI, especially businesses led by women, and digital workspace transformation. Here is the detailed overview.

Cybersecurity adoption: Nearly 46.3% of Indian MSMEs have adopted to Cyber security solutions to protect themselves from the raising online threats.

Women Entrepreneurs Take the Lead: The report also points out substantial digital growth, especially with women-led MSMEs, which have achieved 61.6 points in total, while the male-led businesses report 60.4 points.

Emergence of digital workspace: Indian MSMEs are transitioning to the digital workspace, where there was a rise from 57.5 points reported in 2023 to 65.7 points in 2026, showing that the MSMEs in India are adapting to digital workspace tools like HRMS and productivity suites to enhance their operations and collaboration among teams.

ReadyForNext Study showcases leading sectors in digital adoption, which include Financial Services, Retail, and IT and Tech services. Financial services is standing at 67.3, while the Retail sector is in the second place, showing a massive jump of 9.9 points, and lastly, we have the IT and tech services industry, which is in the third position.

Also Read: Apple Services Has Turned Into Crucial Component

ReadyForNext Identifies Three Key Technology Trends to Shape MSMEs

After surveying MSMES, the VI Business MSME Growth Insights Study 2026 finds three trends that can help MSMEs to scale up their business with the help of AI. This includes the usage of AI to drive productivity, integrate a SaaS-led workplace tool for collaboration, and to enhance the overall operations, and lastly, cybersecurity, which builds trust, reliability, and ensures business continuity.

Also Read: Airtel Emerges Top Wireless Gainer in May 2026; Jio Crosses 500 Million Mobile Users: TRAI

Bridging the Remaining Gaps for Indian MSMEs

The study shows data of Indian MSMEs that are online, which is around 35% of the total MSMEs that have their own websites, although the rest of the MSMEs still fully work offline, giving them less online presence. These MSMEs are part of sectors like manufacturing and agriculture.

In order to fill such gaps, Vi Business will also be assessing the financial readiness of the MSMEs, where this metric will evaluate a business’s funding risk and awareness, and will also help in making offline businesses go online to build a better financial portfolio.

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