India lags behind rest of the world in AI adoption; only 15% of SMEs use AI: BCIC

Artificial Intelligence (AI) is underutilised in the SME and MSME manufacturing sectors in India and should be perceived as a transformative opportunity rather than a disruptive challenge, opined industry experts who spoke at a summit here on Wednesday.

While speaking at the summit on “Transforming industries with AI to achieve unmatched productivity and efficiency,” industry players also underlined the importance for enterprises to harness the potential of AI to optimise processes, improve decision-making, and scale sustainably in an increasingly digital economy.

Chandrashekar Bharathi, Managing Director, AceMicromatic MIT said, “AI is rapidly changing and should be a DNA approach for any manufacturing company as it re-purposes people to do more challenging jobs, empowering them to unlock new possibilities.’‘

From manufacturing floors to leadership decisions, AI-driven platforms must be used to harmonise data, enhance contextual awareness, and predict challenges before they arise, he suggested adding, “As we step into Industry 5.0, it’s not just about automation but intelligent collaboration between human ingenuity and digital precision.”

Kenji Anzari, Head – CNC Systems, Mitsubishi Electric India said, “AI is the foundation for the future of manufacturing. Human-machine collaboration is key, empowering devices to understand and respond intelligently to user commands while bridging information gaps.’‘

AI in manufacturing went beyond automation; it fuelled intelligent automation, enabled smart factories to be more efficient, adaptive, and sustainable, Mr. Anzari said.

He further said, addressing challenges such as workforce development, productivity enhancement, and global competitiveness required AI-led solutions, from skill gap reduction and predictive maintenance to smart supply chain innovation. “AI is not just an upgrade, it is the key to building a smarter, safer, and more resilient industry, positioning manufacturers at the forefront of global transformation.”

Setting the context, G Prakash, Chairman, Manufacturing Expert Committee, BCIC said, India has a vast manufacturing base, with over 90% of industrial units falling under the MSME category. These enterprises contribute nearly 30% of India’s GDP, employ 110 million people, and account for 48% of India’s exports.

“However, many MSMEs were yet to embrace digitalisation, Industry 4.0, or AI, often perceiving these technologies as costly and complex. AI is not a luxury; it is a necessity,’‘ he stated.

AI-driven solutions now available through affordable cloud-based and plug-and-play models can deliver productivity gains of 15% to 30%, enabling predictive maintenance, quality monitoring, and energy optimisation.

“AI adoption in manufacturing stands at 35–40%, with significant uptake in China, Germany, and the U.S. Yet India lags behind, with less than 25% adoption in organised manufacturing and even lower among MSMEs,’‘ Mr. Prakash added.

Vineet Verma, President BCIC, said, “AI revolution in manufacturing is not about replacing workers, it is about enhancing their capabilities. While concerns about job security persist, AI serves as an enabler, freeing employees from repetitive tasks and empowering them to focus on strategic and creative contributions.’‘ To thrive in this evolving landscape, upskilling and adaptability are essential, he added.

Published - June 05, 2025 08:26 am IST