Summary:
A new Vi Business MSME Growth Insights Study 2026 shows that artificial intelligence is becoming a key growth driver for Indian MSMEs, with 57% of businesses viewing AI as essential and 25% already integrating it into their operations. The report also highlights rising digital maturity, stronger adoption of cybersecurity and digital workplace tools, and better performance by women-led enterprises. However, it notes that many MSMEs still lack an online presence, underscoring the need to bridge the digital gap through improved financial readiness and digital transformation initiatives.
As artificial intelligence continues to expand rapidly worldwide, India is positioning itself as a major centre for AI adoption and data centre development. In response to this technological shift, the country’s Micro, Small and Medium Enterprises (MSMEs)—often regarded as the backbone of the Indian economy—are increasingly embracing AI-driven transformation. The latest Vi Business MSME Growth Insights Study 2026 assessed the current level of AI adoption across the MSME ecosystem.
AI Becoming Central to MSME Growth
The study evaluated nearly 2.5 lakh MSMEs spanning 26 industry sectors and found that 57% of businesses now consider AI an essential tool for improving day-to-day operations and accelerating business growth.
Around 25% of surveyed enterprises have already incorporated AI into their business processes, using the technology for applications such as customer service automation, demand forecasting, and logistics optimisation.
The report also highlighted progress in India’s Digital Maturity Index, which measures how effectively MSMEs leverage digital technologies to improve efficiency, create value, and support business expansion. The index increased to 60.8 in 2026, representing an improvement of 2.8 points over the previous year’s score of 58.0.
Cybersecurity, Women-Led Businesses and Digital Workplaces
The study also examined several key areas of digital transformation:
- Cybersecurity adoption: Nearly 46.3% of Indian MSMEs have implemented cybersecurity solutions to safeguard their businesses against rising cyber threats.
- Women-led enterprises: Businesses led by women achieved a Digital Maturity Index score of 61.6, slightly outperforming male-led enterprises, which recorded 60.4.
- Digital workplace transformation: MSMEs have significantly increased the adoption of digital workplace platforms, with scores rising from 57.5 in 2023 to 65.7 in 2026. Companies are increasingly deploying solutions such as HRMS platforms and productivity software to improve operational efficiency and collaboration.
Among industry segments, Financial Services ranked highest in digital adoption with a score of 67.3, followed by the Retail sector, which recorded the largest improvement with a 9.9-point increase, while IT and Technology Services secured the third position.
Three Technology Priorities for MSMEs
Based on its findings, the Vi Business MSME Growth Insights Study 2026 identified three major technology priorities that can help MSMEs expand their businesses:
- Leveraging AI to improve productivity and operational efficiency.
- Adopting SaaS-based workplace solutions to strengthen collaboration and streamline business processes.
- Investing in cybersecurity to enhance trust, ensure business continuity, and improve organisational resilience.
Addressing the Digital Divide
The report also revealed that only 35% of Indian MSMEs currently operate their own websites, while a large number of businesses—particularly in sectors such as manufacturing and agriculture—continue to function primarily offline, limiting their digital presence.
To help bridge this gap, Vi Business plans to introduce assessments focused on the financial readiness of MSMEs. These evaluations will measure businesses’ awareness of funding opportunities and financial risks while also encouraging offline enterprises to establish an online presence and build stronger financial profiles.
